• Ellie Perlman

Top 5 Highest and Lowest Rent Collection States of April 2020


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 focuses on the "APS" of real estate: Asset, Process, and Strategy. Each episode discusses how investors can scale their real estate portfolio and/or businesses.

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.

Sources:

Matthews Real Estate Investment Services

Worldometer

US Bureau of Labor Statistics

Department of Numbers

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