Cash balances for landlords rose in pandemic’s early days

Analysis shows loss in rent revenue largely superseded by drop in expenses

National /
Nov.November 05, 2021 08:02 AM
When rent payments began to normalize that summer, cash balances for landlords rose. (iStock)
When rent payments began to normalize that summer, cash balances for landlords rose. (iStock)
 

Tenants and landlords alike faced unprecedented difficulties during the pandemic, but a new analysis suggests landlords were able to increase their cash balances early on.

The analysis from JPMorgan Chase revealed landlords across the nation had higher cash balances in June 2020 than they did pre-pandemic, according to Vox. The revelation undercuts some of the claims made by landlords about the toll they suffered, particularly in the early months of the pandemic.

According to the analysis, landlords lost about 20 percent of their revenue from rent payments in April and May 2020, but that went part and parcel with a 25 percent drop in expenses. When rent payments began to normalize that summer, cash balances for landlords rose.

In some cases, cash balances were significantly higher than they were before the pandemic. In May 2020, landlord cash balances were up 11 percent year-over-year from 2019. In June 2020, cash balances were up between 25 and 30 percent year-over-year.

However, some landlords were hit harder than others. Those in central cities like San Francisco, New York and Miami had to endure harder losses during the pandemic’s early days due to declining rent, according to the JPMorgan Chase data.

Additionally, the bill will come due for landlords soon. Vox reports that some of the expenses that declined for landlords include maintenance repairs and deferred mortgage payments, both of which need to be eventually addressed.

The analysis adds to growing perspective on the pandemic’s true effect on rental markets after dire forecasts. The eviction moratorium put into place to protect tenants was expected to result in mass evictions after it expired. But less than 37,000 eviction filings were tracked by Princeton’s Eviction Lab in September, less than half of the month’s pre-pandemic average.

[Vox] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    Queen Mary (Google Maps, iStock)
    Long Beach to size up Queen Mary in wake of failed redevelopment plan
    Long Beach to size up Queen Mary in wake of failed redevelopment plan
    Prologis' Hamid Moghadam and 8819 E Edison Ave in Ontario (Google Maps, Prologis)
    Prologis gets option on 177 more acres in Ontario Ranch
    Prologis gets option on 177 more acres in Ontario Ranch
    SRG's Chris Payne and Burnham Ward's Bryon Ward with rendering of New Laguna Niguel City Center (Sares Regis Group, Burnham Ward Properties)
    ‘Napa Valley-esque’ downtown to be built in Laguna Niguel
    ‘Napa Valley-esque’ downtown to be built in Laguna Niguel
    LaTerra Development's Charles Tourtellotte with 4112 Del Rey Avenue (LinkedIn, Loopnet)
    LaTerra buys Marina del Rey office complex
    LaTerra buys Marina del Rey office complex
    CIM’s Shaul Kuba with renderings of the project at 6007 Sunset Blvd in Hollywood (Getty, CIM Group)
    CIM sells site of 109-unit resi development in Hollywood
    CIM sells site of 109-unit resi development in Hollywood
    Councilman Bob Blumenfield with 5300 N. Oakdale Ave (Dean Musgrove, iStock)
    Last commercial orange grove in the San Fernando Valley slated for luxury homes
    Last commercial orange grove in the San Fernando Valley slated for luxury homes
    From left: Stockdale Capital Partners' Steven and Shawn Yari with 656 San Vicente Blvd
    Stockdale Capital gets early green light for 140K sf medical tower near Cedars-Sinai
    Stockdale Capital gets early green light for 140K sf medical tower near Cedars-Sinai
    HBC's Richard Baker with  9600 Wilshire Blvd (SFA, Cornell)
    Historic Saks Fifth Avenue complex in Beverly Hills eyed for redevelopment
    Historic Saks Fifth Avenue complex in Beverly Hills eyed for redevelopment
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...