Property Managers Gain Greater Predictive Power to Help Further Decrease Future Evictions
September 18 2019 - 5:50AM
Evicting a resident comes at great cost to both the renter and
property manager. In fact, about 4% of rental properties result in
an eviction at an average cost of $5,000 per unit for the property
manager. To better assist property managers to ensure they get the
highest quality renters in appropriate units, TransUnion (NYSE:
TRU) launched today its ResidentScore 3.0 proprietary scoring
model.
The enhanced solution was unveiled at
TransUnion's Annual Property Management Summit in Chicago, attended
by 100+ multifamily senior executives. Leveraging artificial
intelligence enabled machine learning, the rental housing-specific
score is built on actual multi-family outcomes data to offer
property managers greater insight into predicting the likelihood a
renter will be evicted or “skip” out of their rental unit without
paying within 12 months.
“Property management companies can face
significant losses when evictions are high. 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,” said Maitri Johnson, vice president of multifamily at
TransUnion. “Having the proper checks and balances in place to
reduce costly involuntary turnover can lead to huge savings.”
ResidentScore 3.0 is the third generation of
TransUnion’s artificial intelligence based multi-family score that
has been in the market since 2013, becoming the industry leading
solution for determining the likelihood of eviction or adverse
rental outcome. The score ranges from 350-850 with a higher score
indicating a lower expected rate of eviction. ResidentScore 3.0 is
4% more predictive than the previous model, and outperforms
standard credit models by 16%.
Compared to common industry practices,
ResidentScore 3.0 draws a more accurate prediction of renter
outcomes by leveraging multiple variables and new data elements.
The custom models utilize machine-learning technology, rendering a
decision in 60 seconds or less, so property managers may detect a
larger percentage of higher-risk renters at the time of
application. As a result, property managers can better
differentiate good residents from high-risk renters and better
predict an individuals’ risk of evictions and skips.
Lower ResidentScores = Higher Expected
Eviction Rates
ResidentScore |
12 Month Expected Bad Rate |
<520 |
28.79% |
520-559 |
20.18% |
560-599 |
11.16% |
600-639 |
2.56% |
640-679 |
1.53% |
680-719 |
0.36% |
720+ |
0.09% |
*12 Month Expected Bad Rate: The percentage of
residents within a designated score range that will either be
evicted or skip out owing money in the first 12 months.
“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,”
added Johnson. “ResidentScore 3.0 fills that void in the
marketplace by leveraging robust data and analytic capabilities and
presenting a more holistic view of each renter.”
Learn more about ResidentScore 3.0 by
registering for the Oct. 10 webinar, “Get in the Know on
ResidentScore 3.0”, or by visiting
https://www.transunion.com/product/resident-score.
About TransUnion (NYSE:
TRU)Information is a powerful thing. At TransUnion, we
realize that. We are dedicated to finding innovative ways
information can be used to help individuals make better and smarter
decisions. We help uncover unique stories, trends and insights
behind each data point, using historical information as well as
alternative data sources. This allows a variety of markets and
businesses to better manage risk and consumers to better manage
their credit, personal information and identity. Today, TransUnion
has a global presence in more than 30 countries and a leading
presence in several international markets across North America,
Africa, Europe, Latin America and Asia. Through the power of
information, TransUnion is working to build stronger economies and
families and safer communities worldwide.
We call this Information for Good.®
http://www.transunion.com/business
Contact |
Dave Blumberg TransUnion |
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E-mail |
david.blumberg@transunion.com |
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Telephone |
312-972-6646 |
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