Key Highlights
- RealtyTrac recent report found single-family rental (SFR) property owners in nearly half of US counties at major risk of default
- Mom-and-pop owners at particular risk
Owners of Single-Family Rental (SFR) Properties at Major Risk of Default in 48% of US Counties
RealtyTrac’s latest Rental Property Risk Report indicates that owners of single-family rental (SFR) properties in 48% of US counties are a major risk of defaulting on their properties.
Mom-and-Pop Owners Particularly Vulnerable
The overwhelming majority, some 90%, of owners of single-family rental properties are mom-and-pop owners. These most-at-risk-of-default owner, have fewer than 10 rental properties. When their tenants struggle to pay the rent, if they’re able to pay at all, mom-and-pop owners are stuck.
Many mom-and-pop SFR owners have lower incomes to begin with. Plus, some were priced out of the market even before the pandemic, according to RealtyTrac.
Economic Impacts of Pandemic Almost Circular
COVID-impacted industries such as tourism, hospitality, entertainment, and the arts, hit the most COVID-affected workers. Many of these COVID- affected workers were/are renters who couldn’t afford to pay their rent in the first place, pre-pandemic. Those COVID-affected workers/renters then impacted now COVID-affected landlords. Additionally, SFR owners in cities with high student populations, think Boston, have been COVID-affected.
Counties Most COVID-Affected with Highest Percentage of Single-Family Rental Propertie
County State% SFR Properties Risk Score
Mohave AZ 78.68 77.2
New York NY 51.76 70.6
Kern CA 58.98 70.1
Horry SC 64.76 67.2
Collier FL 75.85 64.8
Polk FL 54.19 64.8
Philadelphia PA 36.55 63.3
Lee FL 60.13 61.5
El Paso TX 48.81 61.2
Wayne MI 42.85 61.2
Concerted Effort Needed to Protect At-Risk Landlords
Rick Sharga, RealtyTrac’s executive vice president, said, “Federal, state and local governments have responded (to COVID-affected workers and renters) by enacting eviction bans to protect tenants, but in doing so have inadvertently put many landlords are risk…there needs to be a concerted effort to backstop the landlords as well, or numerous counties across the country are going to see rising levels of foreclosures on rental properties and needless financial distress.
Thanks to RealtyTrac, ATTOM Data Solutions, US Bureau of Labor Statistics and Inman.
