Multifamily renters are more likely to pay their rent on time and in full in 2013 than they have been in years. According to a CoreLogic report released earlier this month, the “credit and financial quality of multifamily renters continues to improve,” which CoreLogic says is a “positive statement about the economy in general. In Q4 2012, the risk index’s measure was 103 compared to Q4 2011 measures of 101 (higher numbers equate to better applicants). Renters who wished to rent two-bedroom units improved even more substantially, with their rental risk index number rising to 108 in Q4 2012. Given that “you typically have low numbers of rental applicants in the market…and you don’t have the best applicants in the market” in any given fourth quarter, according to CoreLogic senior director of CoreLogic SafeRent, Jay Harris, the year-over-year improvement is a good sign.
When reading the rental risk index, a number over 100 indicates that there is a decreased risk, while a number below 100 indicates increased risk. During 2012 the trend of dual-application also increased, posting a rise of 3.9 percent. Applicant incomes also rose year-over-year by 1.7 percent.
by Carol VanSickle