Before you can become a new tenant, your landlord usually assesses your capability to honor all agreements pertaining to the use of their rental property. For every landlord, protecting their rental income remains their primary consideration. More often than not, payment issues rank the highest among all the issues independent landlords have to deal with on a regular basis. It is even worse when they have to incur the cost of eviction due to non-payment.
In this article, we will discuss the workings of a ResidentScore vs. a typical credit score in tenant screening and explore the benefits of using ResidentScore over a credit score when making a leasing or rental decision.
What Is a Residentscore?
A ResidentScore is a scoring system designed for tenant screening. This type of screening is similar to a credit score, except that it uses the tenant’s credit information to establish their risk for evictions, late payments, and insufficient funds.
ResidentScore looks at the outcomes of a lease using data and analytics compiled by TransUnion, which has since collected rental results of more than 3.7 million individual cases across the United States. ResidentScore identifies crucial pieces of data that clearly identify problematic tenants from those who are less likely to cause any trouble for the landlord.
What Is a Typical Credit Score?
A typical credit score is a numeric representation that predicts an individual’s likelihood of making repayments. The numeric representations that form the credit score are used to rate a consumer’s ability to repay debt. Lenders use credit scores to determine if a consumer presents any risks of failing to make repayments. Often, an account indicating potential risks can be handled with terms suitable to handle the risks presented.
There are different ways to create a person’s credit score, but their payment history and the amount of money they owe are the two most significant factors that determine a credit score. Other factors include the type of credit and any new credit applications.
How ResidentScore Differs From a Typical Credit Score in Tenant Screening
Understanding ResidentScore vs. credit score in rental applications is crucial. Credit scores show a landlord if a tenant can pay off a loan, and it can be used in tenant screening. However, a ResidentScore delves deeper into a tenant’s repayment behavior by analyzing their performance as a tenant.
Specifically:
- A ResidentScore is better because it utilizes 15% more evictions and 19% more repayment skips compared to a typical credit score.
- A ResidentScore has more applicants with minimal files.
- A ResidentScore is specifically designed to identify the likelihood of eviction.
Benefit More From ResidentScore
Remember, you can still use a typical credit score to evaluate a potential tenant’s financial behavior. However, you will complete a more accurate risk assessment with ResidentScore. If you need help screening potential residences or HOA rental restriction services in Florida, contact Enforcer Pros.