TransUnion’s Report on Renting

TransUnion, one of the three national consumer credit reporting agencies, conducted a study in early June 2011 of 1,252 property managers nationwide. The study surveyed 1,085 small property managers (200 units and under) and 167 large property managers (over 200 units). The categories included rent, vacancy rates, credit and background checks for the large and small property managers.

There were some key differences in small versus large properties.  Small properties had less difficulty finding renters, had 56% fewer vacancies and conducted fewer criminal background checks.  More large properties were able to increased rent than small properties.

Rent

• Overall 67% did not have difficulty finding renters because of the economy or price increases.
• About 57% of large properties and 69% of small had no difficulty finding renters.
• Approximately 64% of large property managers and 36% of small property managers were able to increase rent last year.

Vacancy

• There has been a 47% increase in rentals from foreclosed properties.
• Over 87% had vacancy rates less than 10%.
• Almost 67% of small property managers and 11% of large property managers had no vacancies.
• Vacancy rates were the same as last year for 66% and higher for 14%.
• Vacancies were expected to be the same as next year for 68% and higher for 8%.

Credit and background checks

• More than 87% conducted credit checks; there wasn’t much difference between large property owners (90%) and small (87%).
• Approximately 76% conducted criminal background checks, but more large property owners (90%) than small (74%) did.
• About 65% were concerned about attracting reliable and profitable residents.
• Compared to one year ago, 27% of large property managers versus 18% of small said it was more difficult to find qualified renters.

The apartment rental industry is gaining occupancy because of the economic conditions.  Vacancy rates are going up partly due to home foreclosures and potential home buyers delaying their purchase because of the economy.  Credit checks are becoming even more important because of the potential lost rent and damage to property.

John Ulzheimer is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a Contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry.  Follow him on Twitter here.

Categorised in: Money & Identity, Saving Money

This post was written by John Ulzheimer