Welcome!

News Feed Item

TransUnion Finds Renters Becoming Less Risky as Rental Prices Rise

CHICAGO, IL -- (Marketwired) -- 01/27/14 -- While rental prices increased in the last year, the credit risk of residents in those properties has also improved. The latest TransUnion Rental Screening Solutions industry report found that average rental prices have increased nearly 4% from $1,034 in Q3 2012 to $1,072 in Q3 2013. The credit risk of applicants to those properties as measured by TransUnion's Resident Scoring Model has steadily improved, with an average improvement of 1% in the last year.

For the purposes of this analysis and to ensure the validity of the information, national data on rental applications was collected from property managers for the same properties utilizing TransUnion's rental screening solutions in both September 2012 and September 2013.

"The rental market continues to be strong as demand for rental units remains high while consumer credit risk slowly improves," said Michael Doherty, senior vice president of TransUnion's rental screening solutions group. "The combination of improving rental risk scores and continued demand for rental properties is particularly good news for property managers."

Rental price changes were noted among the four primary levels of rental properties, including: Level A (newer, institutional properties), Level B (older, institutional), Level C (older, less desirable area) and Level D (older, less desirable area, renovations/updating needed). All four property levels experienced increases in their rental prices.

                        National Rental Price Changes

----------------------------------------------------------------------------
   Property Level        Q3 2012            Q3 2013          Pct. Change
----------------------------------------------------------------------------
         A                $1,198             $1,244              3.8%
----------------------------------------------------------------------------
         B                $1,008             $1,047              3.8%
----------------------------------------------------------------------------
         C                 $843               $860               2.1%
----------------------------------------------------------------------------
         D                 $665               $693               4.2%
----------------------------------------------------------------------------

The credit risk of residents also improved across the board with all levels seeing rises in the TransUnion Resident Scoring Model: Level A -- up 0.9%; Level B -- up 0.3%; Level C -- up 1.3% and Level D -- up 1.7%.

"As property managers determine the criteria for what types of residents they want for their properties, it is valuable to have a basic understanding about the risk level of the rental population," said Doherty. "When the credit risk of the population improves, property managers may be more inclined to tighten their criteria to ensure they are getting the best possible resident. This is integral because a resident who 'skips' out on a lease can cost a property manager thousands of dollars in lost revenues."

Property managers have the ability to conduct due diligence during the resident screening process by using services such as TransUnion CreditRetriever® for large property management companies and TransUnion SmartMove(SM) for independent landlords.

TransUnion's analysis also observed trends in key markets such as Chicago, Los Angeles and New York between Q3 2012 and Q3 2013.

  • Chicago - Average rental costs increased nearly 5% from $1,345 to $1,411. Credit risk remained the same.
  • Los Angeles - Average rental costs rose 3.2% from $1,565 to $1,615 while credit risk improved 1.1%.
  • New York - Average rental costs increased 5.5% from $2,389 to $2,520. Credit risk improved slightly by 0.4%.

"We noticed that the improvements in credit risk and the rise in rental payments was not a regional trend, rather most markets experienced similar improvements," added Doherty.

About TransUnion
As a global leader in information and risk management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering high quality data, and integrating advanced analytics and enhanced decision-making capabilities. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion reaches businesses and consumers in 33 countries around the world. www.transunion.com/business

Add to Digg Bookmark with del.icio.us Add to Newsvine

Contact
Dave Blumberg
TransUnion
E-mail: Email Contact
Telephone: 312-985-3059

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of C...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The idea behind this session is my blog post - 5 Logstash Alternatives - which is unfortunately too short to do the presented log shippers justice. In his session at @DevOpsSummit at 20th Cloud Expo, Radu Gheorghe, Software Engineer at Sematext Group, will talk more about the things that matter: kinds of buffers, protocols, ways of parsing, correlating and de-duplicating messages, as well as supported inputs and outputs. And of course performance. All this should let you know which log shipper...
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed ...