Did you know there’s not a single “credit score”?
When you ask someone what a credit score is, one might respond, “It’s a score to determine one’s likelihood to pay back a loan!” While that’s technically true, it’s not actually that black and white. For instance, did you know that recognizable scores such as FICO® and VantageScore® have well over 40 different versions of a credit score?
There are many scores built for a specific purpose, such as predicting the likelihood of a car or mortgage loan. But how is a property management company supposed to use said scores to predict the likelihood of an individual’s performance as a renter? Because predicting rental specific outcomes is important, TransUnion came up with a custom scoring model tailored to the property management industry.
Did you know you’re using a score that was built specifically for the multi-family industry?
TransUnion ResidentScore℠ predicts the likelihood of an eviction to reduce your bad debt. What can this mean for you?
- Less time on collections
- Units in better condition at move out
- Reduced involuntary turnover
- More NOI
ResidentScore has been able to predict evictions up to 15% better than a generic scoring model — ensuring your business doesn’t miss out on great residents.
Did you know you could have an applicant who doesn’t qualify for a mortgage loan, but would still be one of your best residents and always pay their rent on time?
This is a great example of why utilizing our unique ResidentScore℠ through TransUnion ResidentScreening is important. While a standard credit score may not indicate that they’re a good risk for a mortgage loan, our industry specific ResidentScore could indicate that they’re a qualified candidate for a rental property, which is a distinction that you don’t want to miss.
Using TransUnion ResidentScore also means that you’re:
- Using a score that was built with actual outcomes from the industry
- Able to predict within specific property type: affordable, student or senior
Know that you’re ahead of the curve!
When you use scores that predict non-rental outcomes, you’re most likely guessing what those scores will determine in a rental situation. Relying on ResidentScore allows you to eliminate the guesswork and get the edge on the competition with the specific insights needed to reduce your risk and gain better residents.