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We all know that COVID-19 has created a major impact in the world, as well as the US markets. April rent collections were fully anticipated to be lower, though the positive news is that the impact has not been as severe as anticipated thus far. When evaluating projections for overall collection impact, there are a number of factors to be taken into consideration for each market. Many syndicators and investors are now facing challenges at identifying if they should continue to buy and/or sell, or hold.
As my team has diligently spent weeks pouring over this data, it proves both useful and important to remain aware of these statistics as we devise projections, and continue to evaluate our strategies for the upcoming months at protecting our cash flow and assets. Being mindful of not only the COVID rates within the state, but even more so, the economic impact including unemployment rates, impacted GDP industries, and rent collection trends are all vital information in implementing an effective strategy to mitigate the anticipated challenges.
Here are the top 5 and least 5 collection impacted states, along with their respective applicable COVID-19 and market data:
The 5 Lowest Rent Collection States in April 2020:
5. South Carolina
Rent Collections: 73%
COVID-19 Total Cases: 5,253
Unemployment Rate as of March 31st: 2.6%
Percentage of Renters Statewide: 31.25%
Top 3 GDP Industries in State: Aerospace, Agribusiness, Automotive
4. Tennessee
Rent Collections: 72%
COVID-19 Total Cases: 9,189
Unemployment Rate as of March 31st: 3.5%
Percentage of Renters Statewide: 34.57%
Top 3 GDP Industries in State: Agriculture, Manufacturing, Tourism
3. Arkansas
Rent Collections: 72%
COVID-19 Total Cases: 2,938
Unemployment Rate as of March 31st: 4.8%
Percentage of Renters Statewide: 34.75%
Top 3 GDP Industries in State: Agriculture, Transport and Logistics, Aerospace, Defense
2. Maine
Rent Collections: 71%
COVID-19 Total Cases: 1,015
Unemployment Rate as of March 31st: 3.2%
Percentage of Renters Statewide: 26.83%
Top 3 GDP Industries in State: Healthcare, Retail, Tourism
1. Connecticut
Rent Collections: 66%
COVID-19 Total Cases: 24,582
Unemployment Rate as of March 31st: 3.7%
Percentage of Renters Statewide: 33.80%
Top 3 GDP Industries in State: Finance & Insurance, Healthcare, Education
The 5 Highest Rent Collection States in April 2020:
5. Wisconsin
Rent Collections: 91%
COVID-19 Total Cases: 5,687
Unemployment Rate as of March 31st: 3.4%
Percentage of Renters Statewide: 33.39%
Top 3 GDP Industries in State: Dairy, Manufacturing, IT
4. South Dakota
Rent Collections: 92%
COVID-19 Total Cases: 2,212
Unemployment Rate as of March 31st: 3.3%
Percentage of Renters Statewide: 32.29%
Top 3 GDP Industries in State: Agriculture, Fishing, Forestry
3. Montana
Rent Collections: 93%
COVID-19 Total Cases: 448
Unemployment Rate as of March 31st: 3.5%
Percentage of Renters Statewide: 30.85%
Top 3 GDP Industries in State: Agriculture, Healthcare, Forestry
2. Texas
Rent Collections: 93%
COVID-19 Total Cases: 24,631
Unemployment Rate as of March 31st: 4.7%
Percentage of Renters Statewide: 38.03%
Top 3 GDP Industries in State: Petroleum & Natural Gas, Farming, Steel
1. Idaho
Rent Collections: 96%
COVID-19 Total Cases: 1,887
Unemployment Rate as of March 31st: 2.6%
Percentage of Renters Statewide: 30.34%
Top 3 GDP Industries in State: Agriculture, Manufacturing, Mining
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About the Author
Ellie is the founder of Blue Lake Capital, a real estate company specialized in multifamily investing throughout the United States. At Blue Lake Capital, Ellie helps investors grow their wealth and achieve double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.
Ellie is the host of REady2Scale , a podcast that highlights honest, insightful, and thought-provoking discussions on the multiple approaches for successful real estate investing.
She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.
Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can read more about Blue Lake Capital at www.bluelake-capital.com and learn more about Ellie at www.ellieperlman.com.
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