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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 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
Welcome
Todd Smith – Sr. Mgr Training, AppFolio
Presenters
Approximately 45 MinWebinar Length
Unlocking the Power of Rental Payment HistoryContent
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
Screening Primer
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: 31Credit score: GoodBackground check: PassReferences: Pass
John
Age: 22Credit score: UnscoreableBackground check: PassReferences: Pass
Tom
Age: 22Credit score: GoodBackground check: PassReferences: Pass
Cathy
Rental payment data
Renters31%
Owners69%
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
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 highlightsDefault 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 2x3+ 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, negative 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: 31Credit score: GoodBackground check: PassReferences: Pass
John
RISKY
2 prior write-offs each $2,000+Skipped on current lease
Serial skipper
Age: 22Credit score: UnscoreableBackground check: PassReferences: Pass
Tom
GOOD
2 prior leasesPaid on time each month
Now credit scoreable
Age: 22Credit score: GoodBackground check: PassReferences: Pass
Cathy
GOOD
3 previous leasesPaid 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
Closing
How to Read and AppFolio Screening Report
1. Easy, Fast, Clear, Comprehensive!
2. Summary at top followed by Details below
3. Summary of Credit, Rent Payment, Eviction, Criminal*
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 Customers Are 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 Customers Are 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
Questions?
