Transunion
ResidentScore® by TransUnion predicts bad outcomes.
Get a comprehensive report prepared for you - no digging.What is ResidentScore®?
ResidentScore® is TransUnion’s proprietary, industry specific, statistical model that predicts bad outcomes.
TransUnion gives a ResidentScore® on a range from 350 to 850 that is designed specifically for Property Management Companies to help give you the most accurate score and report for the guidance of applicants being less likely to be evicted.
At first glance, a typical credit score and ResidentScore might appear to be similar. Both a typical credit score and ResidentScore can help minimize risks when screening a potential resident. However, ResidentScore is explicitly engineered for rental screening and is designed to provide a more accurate assessment of risk for your future rental property income than a typical credit score.
learn moreResidentScore® determines the estimated eviction risk for each application.
TransUnion’s product & compliance teams monitor regulatory changes across jurisdictions.
In a head to head comparison, using actual leasing outcomes, ResidentScore® outperformed every model tested!*
Let’s dig in to the specifics.
Credit Score vs. ResidentScore
A common misconception people have today about credit/risk scores is that they are all intended to predict the same type of credit quality and bad outcomes.
Banks and other financial institutions have been developing and maintaining industry-specific models for decades. There is no one score to predict all potential outcomes. Models exist to predict how likely you are to repay a student, mortgage, auto loans, and more. By using a model specifically intended to predict rental industry outcomes, you will be more likely to identify good residents than using a typical credit score. ResidentScore is approximately 16% more predictive of eviction/skip risk than Vantage 3.0 is.
Below you will find a TransUnion slide that shows you the specific eviction/skip risk based on ResidentScore 4.0 score ranges. The applicants Jodi and Steven represent ~6% skip/eviction risk during a two year lease term.
Let’s dig in to the specifics.
ResidentScore, Explained.
ResidentScore uses 4 categories to determine an applicant’s scoring method.
Thick & Clean
Some important indicators of future performance include:
- Ratio card balance vs. line of credit
- Months since most recent delinquency
- # of accounts at greater than 50% of credit limit
Total of 13 variables factored into the applicant’s Rental score.
Thick & Dirty
Some important indicators of future performance include:
- Percent of accounts opened in the last 24 months
- Months since most recent delinquency
- # of accounts at greater than 50% of credit limit
Total of 13 variables factored into the applicant’s Rental score.
Thin & Clean
Some important indicators of future performance include:
- Percent of accounts opened in the last 24 months
- Months since most recent delinquency
- # of accounts at greater than 50% of credit limit
Total of 13 variables factored into the applicant’s Rental score.
Thin & Dirty
Some important indicators of future performance include:
- Number of collection accounts (medical-related excluded)
- Percent of accounts opened in the last 24 months
- Ratio of accounts with high balance
Total of 12 variables factored into the applicant’s Rental score.
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