When someone leaves a property owing money, it takes time for that information to show up in a credit report—sometimes a long time, if it’s been turned over to a collection agency. Meantime, that person could be sitting in your leasing office applying for an apartment. How do you spot them?

Collections records helps you single out applicants that have recently skipped or left a rental property owing money—before they move in. Why are these records important when screening applicants? Collection agency reports often take 30 to 90 days to appear on traditional credit reports and many collection firms do not report at all. Since residents sent to collections often secure the next lease within days, this data bridges a critical gap. Rather than wait weeks or months for information to appear on credit reports, if it appears at all, it is important to receive immediate alerts about prospective applicants. A product such as Collections Alert from CoreLogic^® SafeRent^® closes that window of vulnerability for your property, giving you access to millions of multifamily collections records that have generally not yet been reported to a credit agency. Data analysis shows that 1 in 20 applicants owes another landlord money, on average $2,662. Multifamily collection records, a key predictor of lease performance, enables you to make more informed leasing decisions.

Be smart. Reduce the risk of future rental default by being informed of applicants that have failed to pay rent in the past. The more you know about your applicants, the better leasing decision you’ll make. Click here to find out how to spot that one!