In a recent report released by real estate analysis firm CoreLogic, the credit scores of renters and apartment applicants is slowly, but surely, improving.
CoreLogic's third quarter Multifamily Applicant Risk Index Report showed that renter and applicant credit quality had increased by one point in a year-over-year measurement, indicating a modest improvement in applicant quality.
Additionally, although rental rates continue to rise, the report's rent affordability rating is also improving. Applicant income grew by slightly more than one percent from this time last year, while the share of that income that goes directly towards paying rent fell by 1.5 percent.
Rental property management officials can take heart in the fact that despite the growth of the housing market, conditions in the multifamily market are looking up and potential tenants are becoming less of a risk. Although this does not mean that landlords should cease their stringent tenant background checks before accepting rental applications, it is a positive sign for the future of the rental market.