Unlock the Power of Rental Payment Data
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Unlock the Power of Rental Payment Data

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Did you know renters with one prior rental debt have a default rate nearly four times higher than applicants who paid as agreed? Rental payment history data can help you improve NOI, reduce ...

Did you know renters with one prior rental debt have a default rate nearly four times higher than applicants who paid as agreed? Rental payment history data can help you improve NOI, reduce collections and minimize skips. Emily Christiansen, Director of Experian RentBureau shares the benefits to your bottom line of both accessing and sharing rental payment data.

- How easy it is to both access and share rental payment data directly through AppFolio
- How to identify the highest-quality residents, reduce serial skippers and approve more applicants
- How sharing data improves bad-debt recovery and reduces skips from your properties
- The benefit to residents (and a community amenity) including the opportunity to build credit history

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    Unlock the Power of Rental Payment Data Unlock the Power of Rental Payment Data Presentation Transcript

    • Welcome Todd Smith – Sr. Mgr Training, AppFolio Presenters Approximately 45 Min Webinar Length Unlocking the Power of Rental Payment History Content Emily Christiansen - Director, Experian RentBureau
    • Agenda • What to Look For in a Screening Report • Best Practices for Reading a Screening Report • AppFolio Screening Report Overview • Overview of Experian RentBureau® • How to Read an AppFolio Screening Report • What Customers are Saying
    • Please ask questions anytime! Use the Questions section of the GoToWebinar panel On right of desktop
    • What to Look For in a Screening Report 1. Easy to Use 2. Fast to Respond 3. Clear to Read 4. Comprehensive Data
    • Best Practices for Reading a Screening Report 1. A Good Credit Score 2. Stable Job History 3. Rental Payment History 4. Criminal Background
    • AppFolio Screening Report Overview 1. Criminal background 2. Credit History 3. FICO Score 4. And now….Rental Payment History  No more faxing  No more double-entry from one system to another  Centralize another task right in AppFolio  Saves even more time and attracts the best residents even faster
    • Experian RentBureau®  Recognized leader in the credit industry  Data on 800 million consumers  Offices in more than 40 countries  Over 12,500 data contributors in North America Experian Experian RentBureau  Largest and most widely used rental payment database  Data on more than 10 million residents  Over 300 property managers contributing data  Secure and FCRA regulated data repository  Now also accepts data from electronic rent payment processors First and only major credit bureau with positive rental trades in its credit repository
    • Which applicant would you accept? Age: 31 Credit score: Good Background check: Pass References: Pass John Age: 22 Credit score: Unscoreable Background check: Pass References: Pass Tom Age: 22 Credit score: Good Background check: Pass References: Pass Cathy
    • Rental payment data Renters 31% Owners 69% What is it? Why is it important?  On-time as well as late payments  Bad checks and/or insufficient funds (NSF)  Lease terms (lease begin, end, move-in, move-out)  Outstanding balances/write-offs  Previous collections activity  “Bad” residents obtaining a lease at another property  Serial skippers (leaving early with money owed)  Labor intensive manual reference checks  64 million U.S. consumers insufficient/no credit history  Good paying consumers rejected due to poor/no credit United States Population
    • Rental payment data lifecycle How does the ecosystem work?  No new software  No manual reporting  Automatically collected every 24 hours  Collected directly from property management software or e-payment processor  Access data through resident screener AppFolio makes it easy to both access AND contribute rental payment data directly through AppFolio Property Manager rentbureau@appfolio.com
    • Rental payment data benefits Benefits of accessing data  Identify the highest quality resident  Spot repeat late or NSF payments  Avoid renting to serial skippers  Approve more applicants  Reduce the need for manual verifications
    • Rental payment data benefits Benefits of contributing data  Improve bad-debt recovery/reduce collections  Prevent skips from your communities  Realize more steady cash flow  Offer residents the opportunity to build credit history “My Experian score was 71 points higher than both TransUnion & Equifax! The only difference was the rental payment history. “ - Resident testimonial
    • The cold, hard facts New data reveals…
    • Analysis highlights Default Rate Renters with one prior rental debt have a default rate nearly four times higher than applicants with positive rental history 4x1 prior debt Renters with three or more late or NSF payments have a default rate more than twice as high as renters with only two or fewer late or NSF payments 2x 3+ late or NSF payments Renters with 2 or more prior rental debts have a default rate nearly six times higher than applicants with positive rental history 6x2+ prior debts No credit, neg ative payment history Unscoreable renters with negative rental payment history have a default rate more than four times higher than the overall national average 4x
    • Which applicant would you accept? Age: 31 Credit score: Good Background check: Pass References: Pass John RISKY 2 prior write-offs each $2,000+ Skipped on current lease Serial skipper Age: 22 Credit score: Unscoreable Background check: Pass References: Pass Tom GOOD 2 prior leases Paid on time each month Now credit scoreable Age: 22 Credit score: Good Background check: Pass References: Pass Cathy GOOD 3 previous leases Paid on time each month Completed lease as agreed
    • In review - Experian RentBureau® “Managers say having access to that payment history is critical to making leasing decisions” – MultiFamily Executive, “Caught in the Act,” July 2012  Identify the highest quality resident  Identify skips and serial skippers  Approve no / thin-file residents  Reduce manual verifications Screening benefits  Improve bad-debt recovery  Prevent skips  Realize more steady cash flow  Offer build credit history amenity Sharing benefits  Largest and most widely used rental payment database  Data from property managers and payment processors  Proprietary technology extracts the data every 24 hours  Easy set-up through AppFolio
    • How to Read and AppFolio Screening Report 1. Easy, Fast, Clear, Comp rehensive! 2. Summary at top followed by Details below 3. Summary of Credit, Rent Payment, Eviction, Crim inal* 4. Details section has expanded information 5. Save time, reduce hassles, rent wisely!
    • Rent Payment History 1. Summary at top followed by Details below 2. Summary gives top line of potentially negative items 3. Details gives in-depth details on payment history 4. Save time, reduce hassles, rent wisely!
    • What CustomersAre Saying "We began using RentBureau through AppFolio about 8 months ago. It was a pretty simple process for us -- adding a disclosure to our lease and appointing a "dispute handler". We've only had one dispute so far, so it hasn't added much work for us. We are looking forward to more and more companies using their program. This will give landlords and property managers a very valuable method of screening tenants.” Duke Dodson "We have received positive comments about using RentBureau to help build credit for tenants.” Rawley Harrison
    • What CustomersAre Saying "We love the fact that we can report payment history for our current tenants and the tenants appreciate that they are building good credit by paying on time” Kristin Smith "Our company places a big emphasis on rental payment history, more than just a credit score. It is important, then, for us to have accurate and timely data about rental payment history. We are excited to be able to use RentBureau, not only to get the information we need, but also to share information on our resident payment history with others.” Althea Parker
    • More Info