Multifamily Applicant Risk Index shows some improvement

Real estate information and analytics firm CoreLogic recently released its Multifamily Applicant Risk Index for the fourth quarter of 2011, indicating the index rose three points from the previous two years.

Renter quality increased recently, the Index suggests. Year-over-year, the MAR Index was three points higher overall, with one-bedroom units scoring a point higher than two-bedroom units with a reading of 101.

While the overall national index dropped three points from the third quarter value of 104, CoreLogic notes small decreases are common during the fourth wuarter, a traditional slow period of multifamily activity.

The Northeast had the highest index value of any region in the nation at 110, while the South and Midwest tied for the lowest at 97. Despite that trend, however, the three metro areas which improved the most were in California, Texas and Utah, while the one which saw the worst drop was Buffalo-Niagara Falls, New York.

Rental property management services may include tenant credit screening, among other activities, allowing landlords to minimize the risk of signing a risky tenant on a lease. This can help to avoid tenants unable to fulfill lease obligations.