• 29
  • June
    2011

According to a recent survey by credit reporting agency TransUnion, renters, who want to find reliable tenants for an optimal price are doing well in the present economy, as more and more consumers are moving into rental property from foreclosed homes.

The survey looked at over 1,100 small property managers nationwide, with 200 units or less and 167 large property managers with over 200 units. While renters have had better business overall, the challenge of finding qualified tenants has not kept pace with increase rental prices. Perhaps part of the reason for that is the increase of rental applicants with poor credit from foreclosure and bankruptcy.

According to the TransUnion survey, 47 percent of the property managers surveyed reported an increase in rental applications moving into apartments from foreclosed property. Over two-this of the managers also said they had not experienced difficulty finding renters, despite the increases in rent.

Roughly 64 percent of the large property owners surveyed said they had increased rental prices for their units, and 36 small of small property owners reported raising rental prices. Even with the increases in rent, 57 percent of large property managers and 69 percent of small property managers reportedly having no difficulty finding applicants.

In terms of being able to find qualified renters, renters reported they were not in a terrible spot, but not as well off as compared to rental property pricing. Around 27 percent of large properties managers said they had a more difficult time finding qualified renters, and 18 percent of small property owners said they had a more difficult time.

Mike Mauseth, vice president of TransUnion's rental screening business unit, pointed out that "A reliable tenant ensures property managers are both solvent and profitable. Conversely an unreliable tenant can cost property managers thousands of dollars in lost rent and property damages." Reportedly, 87 percent of managers run credit checks on applicants and 76 percent of mangers run criminal background checks.

Source: Housing Wire, "More consumers forced to rent due to foreclosure: TransUnion," Christine Ricciardi, 24 June 2011.