May 1, 2020 |
Updated August 4, 2021
Because there exists a misconception that rental housing owners enjoy large margins and can continue operating in the absence of rent payments, and with so much discussion around rents during COVID-19, the National Apartment Association (NAA) has released resources that help explain the breakdown of $1 of rent.
Because education is an effective way to counter talk of rent freezes and rent strikes and battle the perception that owners are greedy with no concern for their residents, NAA offers this explanatory video and companion infographic breaking down a dollar of rent into its component parts.
It is reasonable to expect that rent payments will be increasingly challenging for many as unemployment increases because of COVID-19, and with May first's arrival, the apartment industry must help society understand the benefits of rent payments for all Americans, whether or not they reside in rental housing.
From property taxes that finance schools, emergency services and other local needs, to investor returns that include public pensions and 401(k)s, as well as the dollars put back into the apartment community to ensure quality living for residents, a rent payment is much more important than one might otherwise realize.