So, What is a RentGrade?
A RentGrade is a tenant risk solution that predicts the probability that a tenant will pay their rent on time and fulfill the financial obligations of their lease. RentGrade allows landlords to make a decision quickly using the same powerful tools that the pros use, but packaged into an easy to understand letter grade. RentScreener's RentGrade utilizes TransUnion's ResidentScore to predict rental eviction risks 15% better* than traditional credit scores. Unlike most credit scoring models, TransUnion's ResidentScore is generated by a complex analysis of more than 500,000 actual resident records.
Because smaller landlords cannot access tenant credit scores without a financial audit, and a site inspection from one of the credit bureaus. RentScreener has already passed all compliance, and we use our standing with the bureaus to obtain this information and pass it on to you in the form of a RentGrade. Each RentGrade is based on the tenant screening policies of thousands of property managers nationwide.
Benefits
- We use TransUnion's ResidentScore to predict rental eviction risks 15% better* than traditional credit scores.
- RentScreener has already passed compliance so you don't have to and is designed to allow even the smallest landlords to screen an applicant online.
- RentScreener allows landlords to be unbiased and objective in their screening process and make more informed decisions without violating applicants' privacy.
- Uses the most advanced ResidentScore model to predict an applicant's probability of paying their rent on time.
RentGrades Defined
There are a very complex set of factors that make up a RentGrade. The below definitions help to define the individual RentGrades but may not include all deciding factors.
RentScreener does not make any decisions (acceptance, denial, contigent, etc.) on behalf of the property management company or landlords that use our service. All final decisions for acceptance or denial of an applicant(s) will come directly from the property management company or landlord the applicant has applied with.
ARENTGRADE
Most management companies would rent to this tenant.
Very Low Risk of default (< 1.1%)
A RentGrade of A typically represents a credit score of higher than 700 with a rent-to-income ratio typically 3 to 1 or higher.
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What does this mean?
Congratulations, you have found a fantastic, low-risk tenant. This tenant has a great credit score and has demonstrated a track record of paying bills on time. This is the best grade that we give to any of our potential tenants. Every property management company would be eager to rent to this tenant under the most competitive terms for as long of a lease as possible. -
Next Steps
Sign this tenant on as long of a lease as possible and ask for your standard security deposit. This tenant is in demand and has some room to negotiate on price. Only about 1 in 8 tenants receives an A, so don’t let them get away. -
Action Most Landlords Take
Based on TransUnion’s ResidentScore®, this applicant has a greater than 99% probability of paying their rent on-time. All professional property management companies would rent to this tenant under their least restrictive conditions.
BRENTGRADE
Approved most of the time by professional property managers.
Low Risk of default (1.1% - 2.7%)
A RentGrade of B typically represents a credit score of 600-699 with a rent-to-income ratio 3 to 1 or higher.
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What does this mean?
Congratulations, you have found a good, low-risk tenant. This tenant has a good credit score and has demonstrated a track record of paying most of their bills on time. There have been a few minor issues on their credit report, or they have a very limited credit history. Their probability of paying their rent on time is very high. Most property management companies would rent to this tenant, but they might require some additional financial consideration such as a bigger security deposit. -
Next Steps
We recommend accepting this tenant for residency to a one year lease. Since they have experienced some financial difficulty in their past, we recommend increasing the security deposit to 150-200% of what you would charge a better qualified applicant. If the tenant pays on time and is a good tenant, then you can extend their lease after the first year. -
Action Most Landlords Take
Based on TransUnion’s ResidentScore®, this applicant has a greater than 97.8% probability of paying their rent on-time. Most professional property management companies would rent to this tenant. Some companies would require additional deposit/rent.
CRENTGRADE
Most property managers would conditionally rent with restrictions.
Moderate Risk of default
(2.8% - 5%)
This typically represents a credit score of 500-599 with a rent-to-income ratio 3 to 1 or higher, or a 600-699 credit score with a rent-to-income ratio 1 to 2.9.
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What does this mean?
A RentGrade of C is an average tenant. They are not necessarily good or bad, and they have experienced some significant financial difficulty in their past, or have very little or no credit history. Their probability of paying their rent on time is lower than a B or A. Many property management companies would rent to this tenant, but almost all of them would require additional financial consideration of at least a double security deposit. -
Next Steps
If you want to accept this tenant, we recommend taking a considerably larger security deposit in case the tenant runs into financial trouble during the lease. Since this tenant has a rocky payment history, we recommend taking a security deposit of at least 200-300% of your normal deposit. If you have more qualified applicants, and your local laws permit, you might want to wait for a better, more qualified applicant. -
Action Most Landlords Take
Based on TransUnion’s ResidentScore®, this applicant has a greater than 95% probability of paying their rent on-time. Most professional property management companies would rent to this tenant, however almost all would require additional deposit/rent and/or a co-signer.
FRENTGRADE
Most management companies would not rent to this tenant.
High Risk of default (> 5%)
A RentGrade of F typically represents a credit score of < 500 with a rent-to-income ratio 3 to 1 or higher, or a 500-599 credit score with a rent-to-income ratio 1 to 2.9.
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What does this mean?
A RentGrade of F signifies a history of financial default, or absolutely no credit history. The risk of this tenant defaulting on their lease is very high. Most property management companies would not rent to this tenant. Some would, but would require a cosigner AND significant additional financial consideration such as a much larger security deposit AND some prepaid rent. -
Next Steps
We recommend waiting for a better tenant. If you must rent to this applicant, make sure you get a financially sound co-signer and a significant amount of prepaid rent and a security deposit of at least 3 months rent. -
Action Most Landlords Take
Based on TransUnion’s ResidentScore®, this applicant has a greater than 11% probability of defaulting on their rent. Most professional property management companies would NOT rent to this tenant without significant additional financial considerations. Additional considerations include significantly higher deposit/rent and/or requiring a co-signer.
Key Details at Your Fingertips
Simple RentGrade, Hundreds of factors go into a RentGrade. RentGrade predicts whether or not a tenant will pay their rent.
Rent to Income Ratio, Make sure applicants have the necessary resources to pay their rent.
Criminal & Eviction Checks, Stay informed with state and national information applicants. Know who you are allowing into your home.
Key Details, Important details about your applicant at your fingertips.
Ready to Get Started or Have Questions?
Fill out the form below and we will be in touch!
Note: if you are an Applicant and fill out the form below, RentScreener will not reply. All application questions must be directed to the Landlord/PM you are applying with.
All Applicant support and questions regarding your application, status of your application and refunds, or any of the common issues listed below, will need to be addressed to the Property Management Company or Landlord they are applying with, not by RentScreener.
Common Issues:
- What is the status of my application?
- Did you receive the documents I emailed?
- Why was I denied?
- Please refund my application fee.
- How do I get a copy of my credit report?
- How do I change or add information to the application I submitted?
- I want to withdraw my application.
- Did you receive my application?
- Why do I see a charge from RentScreener?