Investor · Member since 2022 · 157 posts · 162 votes
Hey all, anyone noticing an uptick in delinquencies as costs continue ticking up and the job market is not doing so amazing... I'm generally in C class areas and it feels like tenants feeling the squeeze as prices go up and wage growth not keeping up. I've seen stats on car payment delinquencies on the rise as well... and I'm sure everyone here has had sticker shock when buying groceries.
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
9mo
@George Red This is fairly common, especially this time of year with increased holiday spending. If you own C-class properties, many tenants are living paycheck to paycheck. When seasonal expenses pile up as they typically do this time of year. it’s natural to see more strain on rent payments.
Investor · Member since 2022 · 157 posts · 162 votes
9mo
I imagine inflation and softness in the job market can affect more than just C markets. C is just where I am at, the question was not just about C though... a lot of white collar getting hit with slowdown and AI job effects too.
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
9mo
@George Red
Yep, I’m seeing this too. Expect evictions and don’t wait too long before you file. I’m mostly in C to C+ class rentals. When the next recession hits, our rentals will be in demand the highest due to renters not being able to afford class A and B rentals. Plus homeowners that get foreclosed on will need a cheap place to live. They’ll bump down to us, but be prepared for evictions if/when things slow down. This bifurcated economy is affecting lower income and middle class families more so be prepared to deal with non payments due to job loss etc.
Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 605 votes
9mo
I personally have not experienced an uptick in tenant delinquencies in my portfolio. However, I am seeing a noticeable slowdown in the rental market with longer days on market and increased price sensitivity among prospective tenants. While my current tenants remain current on rent, softened demand suggests renters are feeling financial pressure, even if it has not yet resulted in widespread delinquencies.
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
9mo
@George Red This is fairly common, especially this time of year with increased holiday spending. If you own C-class properties, many tenants are living paycheck to paycheck. When seasonal expenses pile up as they typically do this time of year. it’s natural to see more strain on rent payments.
Investor · Member since 2022 · 157 posts · 162 votes
9mo
I've only been investing a few years and seem to see a trend in fall for some reason that there are some later payment issues... of the 10 units I have 1 currently going through an eviction, one being turned to re-rent, just placed a section 8 tenant in another unit and one unit I may have to file on... Fall/Winter have proven to be months where there are more speed bumps for some reason.
Thanks for your insight to those who posted and I wanted to feel out what others were experiencing out there. I get the feeling that going into 2026 the economic outlook will continue to experience strain.
I've only been investing a few years and seem to see a trend in fall for some reason that there are some later payment issues... of the 10 units I have 1 currently going through an eviction, one being turned to re-rent, just placed a section 8 tenant in another unit and one unit I may have to file on... Fall/Winter have proven to be months where there are more speed bumps for some reason.
Thanks for your insight to those who posted and I wanted to feel out what others were experiencing out there. I get the feeling that going into 2026 the economic outlook will continue to experience strain.
We have 18 B class rentals and we have only had an issue twice in the last ten years and that was during covid. We lost two single mothers that couldn't afford rent anymore after they lost their jobs. Everyone has been just fine this year.