Steep Decline in Renter Quality

According to this press release, On-site.com suggests that applicant quality is diminishing year over year. They go on to mention that preliminary numbers from 2009 support a deeper decline. In a quote Jake Harrington, On-Site’s director of business development, suggests “Resident quality trends are our in-house ‘economic indicator’ and it certainly paints the picture of a distressed pool of renters.” He further added that January’s numbers are on track for an even sharper increase in screenings with negative rental information – with 48 percent more screenings with landlord delinquencies compared to a year ago.

I recognize this might draw negative discord but do we think about creating a threshold of acceptance when it comes to an applicant owing a previous landlord? What do you think?

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0 Responses

  1. Whoa! I think we need to pause and ask why? Why would we want a resident that has a history of owing money for rent? My threshold for acceptance, is no exceptions. I would fear a snowball effect of even more issues. Stay the course.

  2. Mark,

    Thank you – you are the first commenter .

    I don’t disagree with your thought, I just wonder if we are headed to a point where some communities have no choice but to further loosen their criteria. I believe the economy will get worse before it gets better and in that respect I think we will have to make some tough decisions about our criteria.

    Hope your weekend is well.

    M

  3. Mike,

    I agree with you, with so many people in this country are losing their homes or have lost their homes, credit will be an issue for many. I don’t believe that many of these people are credit risks, they just got some bad advice on getting a sub prime loan. If we don’t begin to loosen our criteria, many rental homes are going to sit vacant!

  4. Tony –

    Thank you for taking the time to comment. I do think those who respond rather than react will be the benefactors in this market.

    On an aside, thank you for the kind comment on my other blog site.

    I look forward to staying in touch.

    M

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