Most apartment operators intend to hold rents at their current level for renewal leases signed amid the COVID-19 outbreak, according to more than 1,000 industry professionals polled during a recent RealPage webcast on the coronavirus’ impact on the apartment industry. While the responses were mixed, about 53% said they would keep renewal pricing flat, giving renters the opportunity to stay where they are without the burden of increased rates. Nearly 28% said they would raise rents to cover operating costs, but they would limit that increase to less than 2%. Roughly 17% of operators said they would operate as usual, setting renewal rates as they normally would in times of high retention. Less than 3% said they would cut rents on renewal leases. Renewal retention is expected to rise in the near term, as renters remain in place until pandemic restrictions are lifted.
