Rental Performance Stabilizes for Independent Landlords

Rental performance trends show on-time payments at 83.7% for February 2026, with independent landlord sectors stabilizing.

February 26, 2026

Nina Dale

Rental performance among independent landlords improved, with on-time payments reaching 83.7% in February 2026.
Despite month-to-month gains, on-time payment rates remain 167 basis points below February 2025 levels, marking 31 months of annual declines.
Forecast full-payment rates rose to 95.8%, signaling better income realization even as late payments stay elevated.
Western and Mountain states lead on-time payment performance, with South Dakota, New Hampshire, Utah, and Alaska among the top performers.

Key Takeaways

Rental Performance Trends

Rental performance among non-institutional, or “mom-and-pop,” landlords continued to recover in early 2026. On-time payments for February climbed to 83.7%, extending gains since last fall’s low. While rates are still below their pre-pandemic highs, the data indicates stabilization and gradual improvement across the sector. Chandan Economics’ report, sourced from 64,552 units tracked via RentRedi, reflects changing payment behaviors and economic pressures in the independent landlord segment.

Chart showing 83.7% of rents paid on time in February 2026, up slightly month-over-month but below last year.

Late Payments Remain Elevated

Late payments continue to be the main challenge for independent landlords. The rate exceeded 10% throughout 2025 and remains above that threshold, though the three-month moving average has declined in recent months. February’s forecast suggests further easing, with the late-payment rate expected to drop to 12.1%. This follows a late-2025 period when on-time payment performance began showing measurable improvement for mom-and-pop operators, even as late-payment shares remained elevated. While not yet back to historical norms, the pressure from late payments is gradually lessening as the year progresses.

Line chart showing late rent payments peaking above 13% in 2025, with a forecast decline to about 12.1% in February 2026.

Overall Income Realization Strengthens

Despite the ongoing issue with late payments, full-payment rates—factoring in both on-time and eventual late payments—have improved. The forecast for February 2026 reached 95.8%, the highest since August 2025. This trend reinforces that while more tenants may be paying late, a significant share are ultimately making good on their obligations, stabilizing landlord income streams.

Regional and Property Type Differences

Rental performance varies by region and property type. Western and Mountain states once again posted the highest on-time payment rates, led by South Dakota (97.2%), New Hampshire (94.0%), Utah (94.0%), DC (93.8%), and Alaska (93.5%). Two- to four-family rentals outperformed both single-family and larger multifamily units in February, signaling broad stability across property types.

Line chart showing on-time rent payment rates by property type, with 2–4 family rentals slightly outperforming single-family and multifamily in February 2026.

Why the Report Matters

The Independent Landlord Rental Performance report offers valuable benchmarks for investors, brokers, and policymakers. It tracks rental performance for non-institutional landlords, helping stakeholders assess market health and risk across more than 64,000 units. As economic visibility improves and wage growth continues to outpace inflation, the rental performance outlook for the independent sector is poised for gradual improvement in 2026.