As an independent landlord, when renters fall behind on their payments, it’s more than a minor inconvenience – it can impact your ability to pay the mortgage, cover repairs, and keep your property running smoothly. Especially today, with rents increasing over the past few years and living costs rising, many renters are feeling the pinch, and landlords are seeing the effects.
Why renters are falling behind
Rents have increased sharply in the last few years. By early 2025, the average asking rent hit around $2,000 a month, which is 34% higher than it was in 2020.
On top of rent, essentials like groceries, gas, and household goods have also become significantly more expensive. Surveys show that roughly 68% of renters are saving less and about 75% have cut back on things like food and entertainment just to keep up with rent payments.
What TheGuarantors data says about late payments
In our recent survey of 400+ landlords and property managers, more than 1 in 3 (35%) said they’ve seen an increase in renters falling behind on payments. While that number is significant on its own, it only tells part of the story:
Landlords cite the top reasons for missed payments to be cash shortages (29%), job loss (24%), and rent affordability (23%)
80% of landlords don’t expect these challenges to improve in the next year
Only 1 in 4 renters are able to recover 75% or more of what’s owed
21% of landlords said fewer than a quarter of renters who are more than 30 days late ever fully catch up on rent
For many landlords, this means some renters can bounce back after a short setback, while others keep falling further behind. If rent payments help pay your mortgage or cover bills, that kind of uncertainty can quickly put you in a tough spot.
Why independent landlords feel the impact more
Nearly half of all rental homes are owned by individuals, not big corporations. For many, rental income is part of their household budget. When a renter falls behind, even one missed payment can throw off cash flow.
We saw it during the pandemic – some landlords lost 20% or more of their rental earnings, had to pause mortgage payments, or delay repairs. While the market has recovered, late payments and eviction filings are ticking back up in some areas.
How to help renters and protect yourself
The good news? Being proactive makes a difference. Here are some simple steps you can take to offset the risk of late rent payments:
Screen carefully: Check credit, rental history, and income to reduce risk.
Communicate early and often: Remind renters about due dates and encourage them to reach out if they’re struggling.
Offer payment plans: Partial payments can keep rent coming in while avoiding long-term debt. Many renters want to pay but need a little help.
Know local resources: Help renters find or apply for rental assistance programs
Keep a cushion: Having a few months’ expenses saved can help you weather delayed payments without stress.
Add a layer of protection to your leases: Lease guarantees help you get paid if renters fall behind.
How lease guarantees can protect your bottom line
Lease guarantees are a way to approve more renters (even those who you might normally decline) while still protecting yourself financially – all at no cost to you, the landlord.
With TheGuarantors, you can invite a renter to apply for coverage instead of turning them away. If they’re approved, the renter pays an upfront fee, and your lease can get two layers of protection:
Rent Coverage – Helps cover the cost of unpaid rent, no-shows, vacancy loss, and more during the lease term.
Deposit Coverage – Protects against damages, unpaid utilities, and other move-out charges for as long as they live in the unit.
It’s a way to open your doors to more qualified renters, stand out from other landlords, and protect your investment.
