For property management companies, high eviction rates are bad business. Evicting a resident is a long, complicated process loaded with legal landmines. And it’s not cheap. In fact, about 4% of rental properties result in an eviction at an average cost of $5,000 per unit for the property manager.
If you’re experiencing a bout of evictions, it’s likely not a matter of bad luck. Your screening process could be coming up short. “With screening as the gateway to all things that occur on a property, the best way to identify which applicants may pose a risk is to have a more efficient and effective process in place for vetting potential residents,” says Maitri Johnson, Vice President of Multifamily at TransUnion.
ResidentScore 3.0 offers a glimpse into the future
The key to reducing turnover — and saving money — is to fill your units with quality renters. To help you do just that, TransUnion has released ResidentScore 3.0, an enhanced analytics screening model for the rental industry.
“Every renter has a story and taking a ‘one-size-fits-all’ approach to scoring applicants does not provide property managers with the necessary insight to determine the good residents from those who may have a propensity for skipping out,” says Johnson.
ResidentScore 3.0 solves that problem. The solution leverages machine learning enabled by artificial intelligence, along with multiple variables and new data elements, to tell you more accurately who will likely be evicted or skip out of their lease without paying within 12 months.
In fact, ResidentScore 3.0 is 4% more predictive than the previous model and outperforms standard credit models by 16%. In other words, it enables you to choose applicants who are more likely to be good tenants.
Score applicants in less than a minute
ResidentScore 3.0 leverages both robust data and analytic capabilities to present a more holistic view of each renter — and it’s fast. In less than 60 seconds, you can see if a renter is high risk, based on a score that ranges from 350–850. The lower the score, the higher the chances that the renter will skip out or be evicted.
To learn more about the new ResidentScore 3.0 visit the product page here