Colorado tenants made full payments to their landlords at the highest rate seen in any state during the pandemic, according to a report from TurboTenant.
“In 2020, we saw Colorado landlords receiving the most full rent payments compared to other states. In 2021, that trend continued, which may point to several factors including, that in Colorado, renters prioritized rent payments, landlords were more likely to work with struggling tenants, and rent relief was better utilized and distributed by the state,” said Seamus Nally, CEO of TurboTenant, a rental software provider based in Fort Collins.
At the start of last year, 55% of landlords nationally said they had received a complete payment from their tenants, while another 39% received a partial payment, and 9% received no rent payment. By December, 65% reported receiving full payment, 28% a partial payment, with the remaining 7% reporting no payment.
The situation was much better in Colorado, where 73% of landlords reported receiving full payment at the start of last year and 88% reported receiving a full payment in December. That was the best showing of any state. In New York state, by contrast, 28% of landlords reported no payment in December, which was actually higher than the 20% who said no payment was received at the start of 2021, according to the study.
After a federal moratorium on evictions expired on Sept. 4, concerns mounted that landlords would turn heavily to the courts to remove tenants who were behind. As of December, TurboTenant found only 17% of landlords had acted to evict tenants, compared to 7% back in September.
“While evictions for nonpayment of rent have gradually ticked up since the CDC’s eviction moratorium ended back in August, there was no ‘wave of evictions’ that was often predicted,” said Taylor Marley, a researcher who worked on the report. The state’s high payment rate likely means evictions won’t be as severe.
The Colorado Apartment Association reported in early January that eviction filings in December were at only 82.1% of December 2019 levels, with 3,237 cases filed.
The federal government has provided $46 billion under the Emergency Rental Assistance Program, or ERAP, to help renters catch up on rent and utilities, of which Colorado has received $690 million in two tranches.
Marley said there is still a lack of widespread awareness that financial help is available — upward of half of renters remain unaware of the program. And the application process remains frustrating, which could result in more evictions in the months ahead if not addressed.
“We’ve heard from landlords who have been waiting months for rent relief checks to be delivered or for their applications to even be processed,” she said. “Seeing as most independent landlords rely on rent payments as a primary source of income and retirement, continuing to wait on rent relief checks may not be feasible. Choosing to evict a tenant is sometimes the only alternative.”
