Fewer landlords are being hit by rent arrears than at any point since Pegasus Insight began keeping track.
The research firm's latest data puts the figure at 26% over the past 12 months which is big drop from the 2020 peak of 42%.
However, rent arrears edged up during the first three months of the year before falling back.
It appears that portfolio size makes a big difference and for landlords with at least 11 properties, 66% had experienced arrears.
That compares with just 18% of those owning between one and 10.
Tenant finances remain stretched
Pegasus director, Bethan Cooke, said: "Rental arrears falling to 26% is encouraging, particularly after the financial pressures experienced by tenants and landlords over recent years.
"But it is important not to interpret this as evidence that those pressures have disappeared."
She added: "Larger portfolio landlords remain much more exposed to arrears, while voids continue to affect four in 10 landlords.
"Our tenant research also shows that most renters are continuing to meet their housing costs, but many household budgets remain stretched."
Rent payments hold up
Ms Cooke continued: "With inflationary pressures persisting and landlords facing higher operating and regulatory costs, the position remains finely balanced.
"The priority now should be to avoid adding further pressures that could ultimately feed through into rents or reduce the supply of homes available to tenants."
In the firm's Tenant Trends research, which uses 3,000 private renter interviews, found that 12% had missed a rent payment last year.
Around nine in 10 described the cost of their home as either manageable or comfortable.
However, the research also found some tenants say they are having to choose between paying rent or meeting other essential spending.
Voids hit larger landlords
Voids also remain the most common negative event recorded by the firm, affecting 41% of landlords during the past year.
They will have seen empty property periods lasting 66 days, on average.
For landlords with at least 11 properties, 68% reported having a void of at least seven days, while 35% of smaller portfolio landlords said the same.
Rent growth gathers pace
While rent arrears remain a problem for some landlords, separate research has found that the national rate of rent prices has remained unchanged since the Renters' Rights Act was implemented.
Letting and estate agent Benham and Reeves say rents have accelerated across more than half of England's regions.
The West Midlands recorded the biggest change in pace, with rents rising 0.8% since May compared with 0.2%, for landlords in the North West, rents went up from 0.7% to 1.2%.
Yorkshire and the Humber and the North East both recorded growth of 0.9% compared with 0.5% previously, while London’s landlords saw rent rise from 0.6% to 1% or £2,294 to £2,317 in rent.
A director of the firm, Marc von Grundherr, warned that limited stock in many areas was creating greater tenant competition for available homes.
Portfolio landlords face issues
The managing director of Accommodation for Students, Simon Thompson, said: "While many landlords would believe that having fewer tenant payment problems should reduce one source of financial uncertainty, those running bigger portfolios remain more exposed when tenants fall behind.
"Empty properties are also still capable of creating lengthy gaps in income and appear to present a greater operational challenge for landlords with more homes."
He added: "At the same time, rising rents in many parts of England point to continuing pressure where tenant demand exceeds the homes available.
"Though for landlords considering whether to buy or sell homes, local conditions and the cost of keeping properties occupied are likely to matter more than headline national trends."
