Single-family rentals owned by independent landlords had the lowest on-time payment rates in September, according to a new report from Chandan Economics.

The firm's first estimate for September shows that 81% of SFR units  paid their rent on time this month— the lowest mark of the three sub-types Chandan tracks. That's despite a 75 bps uptick in the on-time payment rate month over month. And year over year, the rate is up by 239 bps. Chandan Economics predicts the late-payment rate for SFR units his month will rise to 10.1% over time, with the full-payment rate settling at 91.1%.

By contrast, two- to four-unit properties fared best, with Chandan deeming them "the most consistent rental sub-type and the least likely to experience distress." On-time collection rates in 2-4 Family properties never fell below 71.9% during the pandemic, 183 bps and 335 bps better than small multifamily and SFR, respectively. Chandan predicts the 2-4 unit late-payment rate in September will rise to 9.5% over time, with the full- payment rate settling at 92.6%.