Colorado renters have made full payments to their landlords at the highest rate seen in any state during the pandemic, according to a TurboTenant report.
“In 2020, we saw that Colorado landlords received the most complete rent payments compared to other states. This trend has continued in 2021, which may indicate several factors, including that in Colorado, renters were prioritizing rent, landlords were more likely to work with struggling tenants, and the state was better at utilizing and distributing rent relief.” Seamus said to Nellie. , CEO of TurboTenant, a rental software provider based in Fort Collins.
Early last year, 55% of landlords across the country said they received full payment from their tenants, another 39% received partial payment, and 9% received no rent. By December, 65% reported receiving full payment, 28% partial payment, and the remaining 7% reported no payment.
The situation was much better in Colorado, where 73% of landlords reported receiving full payment early last year, and 88% reported receiving full payment in December. It was the best record of any state. In New York State, by contrast, 28% of landlords reported no payments in December, which is actually higher than the 20% who said no payments were received in early 2021, according to the study.
With the federal moratorium on evictions expiring on September 4, fears have increased that landlords will actively go to the courts to evict tenants who are left behind. As of December, TurboTenant found that only 17% of landlords were evicting tenants, compared to 7% in September.
“While the number of evictions for non-payment of rent has gradually increased since the CDC moratorium on evictions ended in August, there has not been the “wave of evictions” that was often predicted,” said Taylor Marley, a researcher who worked on the report. High pay rates in the state likely mean evictions won’t be as severe.
The Colorado Housing Association reported in early January that December vacancy filings were only 82.1% of December 2019 levels, with 3,237 cases filed.
The federal government provided $46 billion through the Emergency Rental Assistance Program, or ERAP, to help renters pay rent and utilities, of which Colorado received $690 million in two tranches.
Marley said there is still a widespread lack of information that financial assistance is available — more than half of tenants are unaware of the program. And the application process remains frustrating, which could lead to more evictions in the coming months if action is not taken.
“We have heard from landlords who have waited months for rent checks to be delivered or even for their applications to be processed,” she said. “Given that most independent landlords rely on rent as their main source of income and retirement, further waiting for rent relief checks may not be feasible. The decision to evict a tenant is sometimes the only alternative.”