As a mirror image of past payment practices, credit screening is one of the few indicators property companies have to predict a prospective renter’s likelihood of paying rent reliably throughout the term of a lease. Conventional wisdom suggests that the higher the credit score, the lower the risk that rent will be paid late or not at all. Yet in today’s sophisticated multifaceted commerce environment, it may be time to re-think criteria for judging payment risk.
Experts in alternative credit reporting estimate that one out of every three Americans, or upwards of 100 million people, are underserved by today’s credit reporting systems. That means they ‘fall through the cracks’ in terms of having or building a credit file. As such, these individuals, the majority of whom are employed and have simply never taken steps to build a credit score, are hampered by what they can and cannot achieve in the financial mainstream. Without a respectable credit score, these consumers are charged higher fees to access to credit for such routine needs as an apartment lease, auto financing, insurance and other essential expenses.
NPS Rent Assurance offers solutions for these renters on two levels:
Our goal is to provide communities and residents with the peace of mind month after month of knowing that rent will be received from employers, through us, to communities in-full and on time.