Key Highlights

  • RealtyTrac’s recent report found single-family rental (SFR) property owners in nearly half of US counties at major risk of default
  • Mom-and-pop SFR owners at particular ris

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 at 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, most at risk of major default are mom-and-pop owners who 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 than larger and/or investment owners with +10 SFR properties to begin with.   Plus, some mom-an-pop owners 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 millions of now COVID-affected workers.  Many of those COVID- affected workers were/are renters who couldn’t afford to pay their rent.  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 Properties

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.



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