On-time rent payments across independently operated rental properties improved in October 2026, signaling a gradual stabilization in rental collection conditions, according to the latest Independent Landlord Rental Performance Report from Chandan Economics and RentRedi.
The national on-time payment rate reached 83.2%, up 0.56 percentage points from September and 0.68 percentage points year over year. This marks the third consecutive month of positive annual comparisons, following a period of declining payment performance in late 2025 and early 2026.
Improvements extended across all major rental property types. Two-to-four-family properties recorded the strongest performance, with on-time payments reaching 83.9%, followed by single-family rentals at 83.1% and multifamily properties at 82.5%.
Late payments also showed signs of improvement. The late-payment rate declined to 12.8% in August, down from 13.3% in July and 15.1% a year earlier. The latest available full-payment rate stood at 95.3% in August, indicating that most rental obligations were eventually collected, although delayed payments continue to create cash-flow challenges for independent landlords.
Regional differences remain significant. Hawaii recorded the highest on-time payment rate at 92.6%, followed by Utah at 92.5% and Alaska at 92.3%. Mississippi had the lowest rate at 68.8%, followed by West Virginia at 72.6%.
Despite recent gains, payment performance remains below the stronger levels recorded between 2022 and 2024. Rising living costs continue to pressure household budgets, particularly among lower-income renters, while a softer labor market may limit tenants' ability to manage unexpected expenses.
For single-family rental (SFR) investors, multifamily operators, and independent landlords, the findings point to improving collection trends but highlight the continued importance of managing cash flow and monitoring tenant payment performance. The report draws on RentRedi data covering 60,217 rental units, providing a snapshot of conditions among participating independent rental property owners.
Source: Chandan Economics
