![]() ResidentScoreĪccording to TransUnion, the ResidentScore was created after analyzing 2.9 million residents with payment history taken into account while identifying the key pieces of credit data that lead to evictions. A FICO credit score and VantageScore are two of the most common, displaying a general overview of how long you’ve had credit, how much credit you have, how much of your available credit is being used, and if you’ve paid on time.Īlthough effective reports, these scoring models are not built for the rental screening industry and focus more on the financial services industry such as credit cards and auto loans. Many different variations of credit scores are used throughout different industries. Where the number falls represents what type of credit risk you carry for lenders. The credit score will fall in a range from 300 up to 850. In its simplest form, a credit score is a tool used to determine how likely someone can pay back a loan. A score that aims to more accurately assess the risk a prospective tenant may have on a landlord. However, recently, TransUnion Full Credit Report, formerly known as SmartMove, introduced the ResidentScore. The common practice score that landlords have turned to gauge a prospective tenant’s financial stability has always been the credit score. This will lead to a reduction in unnecessary risk and can easily display red flags a potential tenant might bring to your entity.Īccording to a TransUnion survey, 84% of independent landlords ranked “payment problems” as their top concern.īelow, we discuss the differences between a ResidentScore and a credit score and the benefits of implementing this score into your tenant screening practices, including helping out with missed tenant payments. Going into a landlord-tenant relationship, the more rental industry-tailored relevant data you have on a tenant the better. TransUnion took this data and combined it with demographic, and eviction characteristics to create the ResidentScore model, predicting high-risk outcomes for the rental industry. The score was created by TransUnion after compiling nationwide credit data from individuals that led to negative rental outcomes. So, how do you avoid the headaches of evicting tenants and high tenant turnover? It starts with effectively screening your tenants to give yourself the best shot possible in the tenant-landlord relationship.-+ What Is A ResidentScore?Ī ResidentScore is a score specifically built to give insight into the outcome of a lease. After this frustrating and time-consuming task, it’s also uncertain if recouping any of these eviction costs from the tenant, if successful, is a reality. The ultimate concern for any landlord is dealing with a bad tenant that may need to be evicted from their property, and failure to pay rent will lead to this.īetween eviction court costs, the cost of a lawyer, and final legal fees, it is safe to say at the bare minimum, a landlord could be looking at nearly $1,000 out of pocket, with the potential for this cost to reach $3,000. To a landlord, a tenant’s ability to pay their agreed-upon rent on time is the most crucial of the rental relationship.
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