Tenants in Hawaii are struggling to pay their rent. A recent UHERO report surveyed 271 landlords. The survey provided UHERO with data on 6,719 rental units in the state. The survey reveled that 5% of tenants were behind at least two months in rent.
Prior to COVID-19, UHERO noted:
94.56% of tenants paid in full.
2.88% of tenants were late in their payment.
.57% of tenants were at least 30 days delinquent.
1.99% were at least 60 days delinquent.
The numbers got worse as the year progressed. On August 15, 2020, during the thick of the COVID-19 pandemic, UHERO noted:
85.80% of tenants paid in full.
6.02% of tenants were late in their payment.
3.21% of tenants were at least 30 days delinquent.
4.97% were at least 60 days delinquent.
While 5% of tenants with a 60 or more day delinquency may seem small, that figure is actually over 9,000 households. This is a domino effect. If 9,000 households cannot pay rent, then 9,000 landlords cannot pay their mortgage. What's the next domino to fall if landlords default on their loans?