Apartments.com Providing Residentscore

[Makan A Tabrizi]

I'm unfamiliar with this score but I've done some research and supposedly it is more accurate than a regular credit score as it reports rent payments. My question is: If a landlord does not report rent payments for this purpose, how accurate can this score be? Should I start routing applicants through Zillow as it is still providing a FICO score? Any input would be appreciated.

[Chris B.]

Hello Makan.  I also know nothing about Apartments.com scoring specifically, but I'd probably group the report in with other similar application services like Zillow.  #1 rule is not to trust them, but they still have value.  Much of the information in these reports is self-reported and not verified.  In some areas, I find that the information is exaggerated (applicant lied) to make their application look better

Here's how I use them:  A lot of times, the applicant will self report information that disqualifies them.  I thank them for their interest and let them know they do not qualify.  If the report looks good, We have a phone interview.  If that goes well, I show the property and then I provide them with my own application.  After that is returned, I do a background check through Transunion or a similar service.  If the Transunion report verifies everything, and they meet my other criteria (credit scores, proof of income, background and eviction checks...) then we are good.

In my 15+ years at this, I have found a very strong correlation of credit score and tenant quality. This not only relates to tenant's likelihood to fall behind on rent, but it also corresponds to how well they will treat your property.  I have lost a lot more $$$ to tenant damage than to unpaid rent.  ALL of my major problem tenants happened to have had a average (adults in the household) score below 625.  those with score averages between about 625 and 685 have issues, but generally are manageable.  I've never had a problem with a tenant with a credit score above 700.  With this said, I do consider the situation.  A recent divorce can cause serious credit issues and I've had success with a tenant in this situation.  In another example, a tenant had no credit as he had just immigrated to the US.  He had a tech job and we talked the business and he was legit and when meeting the family, they were very respectful.  This was another great tenant.

Regarding Zillow applications, I differ with Kevin's experience.  In one area I rent, you just cannot trust them; over 50% of them have completely bogus data.  Great resource for advertising your property, but not so great for screening.  They do minimal at best verification of the data the applicant provides. It looks like Kevin's and my markets vary.  I have nicer Class B properties and it is expected that the applicants have a good record.  I put a lot of money into my property to make them nice.  One bad tenant can ( and have) quickly destroyed a year+ worth of profit.