Question on TU SmartMove, please help ASAP

General Landlording & Rental Properties
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Question on TU SmartMove, please help ASAP

Abe Osman
Valencia, CA · Member since 2016 · 20 posts · 15 votes

Hello all!

Completed our most recent rental rehab, and this time we decided to start using TU SmartMove to screen tenants. I have some questions, please let me know ASAP as I need to make a decision within 48 hours. 

When sending an application to a prospective tenant, what is the difference between a Joint Applicant and a Co-Signer? There are 2 distinct boxes

Also, see the screenshot below. SmartMove recommended both a a DECLINE and an ACCEPT depending on where I look. This is confusing. Are they telling me to accept based on the 2 renters together, but decline if they are individually applying? Please clarify?

Lastly, in this example below, the tenant has a Resident Score of 783 which at face value appears rather high, despite having a few late payments on the credit report and a relatively high debt to income ratio. I'm used to seeing credit reports all day long (work related) and I must say with the late pays and amount of open credit for this applicant, I would have expected a score closer to 620-650. However, TU says they evaluate not on their payment history of debts, but their likelyhood to pay rent based on TU's internal matrix. I guess I have to put a lot of faith in TU's calculations? 

The rent is $1200/mo, the applicants together have an income of 3200/mo, and are unrelated room mates. 

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Andrea Collatz
Englewood, CO · Member since 2014 · 101 posts · 44 votes
10y

Hi @Abe Osman

I’m a representative with TransUnion SmartMove. To answer your question about the recommendation, SmartMove recommends that you decline each applicant individually, but together SmartMove recommends that you accept. This often occurs when each individual applicant does not have enough income to cover the rent but their joint income is sufficient. As some of the other commenters have mentioned, a co-signer is a third-party who offers a guarantee of payment on the lease while a joint applicant is also applying to live at the rental property. Lastly, ResidentScore is based on the applicant’s credit history and is designed to help interpret a credit report for you (the score range is 0-999). If you have any further questions please reach out to me through Bigger Pockets. Thanks!

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  • Corina Eufinger
    Rental Property Investor · Oconomowoc, WI · Member since 2016 · 996 posts · 432 votes
    10y

    Abe,

    A cosigner is a guarantee on the lease. They don't live there, but are offering themselves as an alternative means of recouping your money if the leasee doesn't pay. In most states, you must send the cosigner every piece of correspondence you send tenant. 

    I have not seen that screen before, however that may be because I use their system via Buildium as a 3rd party vendor. My advice is look It the reports it pulled and make the best call. Seeing as you seemed to have made a career of it you can deduce a good idea of the person without their recommendation.

    TU's credit scores are usually a little off, that is why I don't use them in my considerations. I look atnthe report and make my own call.

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  • Account Closed
    Dublin , Ire · Member since 2016 · 20 posts · 5 votes
    10y

    Hi Abe, 

    A Joint Applicant is when both parties agree to share the responsibility and a co-signer is when  only one person agrees to be liable. I'd recommend using a joint applicant so both tenants share the responsibility and can be held accountable. 

    I'm not familiar with SmartMove but from what I see it is declining both applicants on account of credit score. 

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  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y

    @Abe Osman The TU Smartmove resident score is not the same thing as a FICO score.  

    A joint applicant, is a roommate.  Someone who will be on the lease as an adult signing the lease, who intends to live there.

    A co-signer is mommy or daddy saying they'll pay the bill if junior doesn't.

    All I see on the screenshot you provided is two declines.

    You're right to decline them based on your own interpretation of the situation - late pays and debt to income ratio.  It looks like TU agrees with you.

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  • Abe Osman
    OP
    Valencia, CA · Member since 2016 · 20 posts · 15 votes
    10y

    Look above the declines. It says "Smart move recommends ACCEPT"  to the right of the blue box. Not that it matters but I found it odd. 

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  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y

    @Abe Osman Oh, I see it now.  That is weird.

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  • Andrea Collatz
    Englewood, CO · Member since 2014 · 101 posts · 44 votes
    10y

    Hi @Abe Osman

    I’m a representative with TransUnion SmartMove. To answer your question about the recommendation, SmartMove recommends that you decline each applicant individually, but together SmartMove recommends that you accept. This often occurs when each individual applicant does not have enough income to cover the rent but their joint income is sufficient. As some of the other commenters have mentioned, a co-signer is a third-party who offers a guarantee of payment on the lease while a joint applicant is also applying to live at the rental property. Lastly, ResidentScore is based on the applicant’s credit history and is designed to help interpret a credit report for you (the score range is 0-999). If you have any further questions please reach out to me through Bigger Pockets. Thanks!

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