Kiser Group and NBOA’s latest survey of mid-market apartment landlords across the Chicago region highlighted a couple of worrisome trends. Only 37% of property owners reported rent collections at 95% or higher, a 20% decrease from three months earlier.
Similarly, the ranks of landlords facing “possible,” “likely” or “high-risk” foreclosure increased by 24% over the same time period. One reason, the survey said, is higher vacancies.
As a result, Kiser Group is projecting that 66% of housing providers will make fewer capital improvements this year. Half will reduce repairs and maintenance budgets, while 26% will not be able to pay taxes or mortgages in full.
In a blog posting, company founder Lee Kiser sees two possible interpretations of the survey data: “1. The trends will continue, and the market will get worse, or 2. We have hit a low point and we will either stabilize here or begin to recover.”