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Shaky credit no big problem for SoCal rental applicants
May 18th, 2008, 3:05 pm · 7 Comments · posted by Mary Ann Milbourn
First Advantage SafeRent’s latest rental-applicant study suggests that SoCal homeowners may be hurting financially, but would-be tenants seem to be doing fine. LA-OC-Riverside ranked fourth in the U.S. during the first quarter for the high credit quality of its rental applicants, by First Advantage SafeRent’s math.
SoCal came in at 112 on the company’s first quarter Multifamily Applicant Rent Index. That was unchanged from the fourth quarter ‘07. (Anything above 100 means tenants are less likely to stiff their landlord.)
New York-Northern New Jersey-Long Island had the best tenant applicant pool with an index score of 118. San Francisco-Oakland-San Jose placed second at 117 followed by Gainesville, Fla. at 113.
Nationwide the index was 100. The West, with a score of 105, was second only to the Northeast at 110.
SoCal SafeRent Index
| 2007 | 2008 | |
|---|---|---|
| 1Q | 112 | 112 |
| 2Q | 116 | |
| 3Q | 115 | |
| 4Q | 112 |
For other recent rent news:
- House/condo renters latest victims of foreclosures
- OC/LA rent increases near 8-year low
- Newer O.C. apartments suffer more vacancies
- Insider Q&A hears of tough times for landlords
- Home/condo rentals not hurting apartment rentals
- What niche will be real estate’s star?
May 18th, 2008 at 6:28 pm
I took my family to Sea World today. I was shocked … SHOCKED by the traffic, or lack of traffic. Don’t get me wrong, I’m not complaining. I’ve driven to San Diego so many times on the weekend, and I’ve never (until today) not stopped on the 5 freeway. I made it from Irvine to Sea World in less than 1 hour. Miracle!
I think it’s very clear what’s going on.
May 18th, 2008 at 7:41 pm
i personally will not read thru 104 tr oll nuggets.
Jon give me a break!
May 18th, 2008 at 7:48 pm
Yes Lee…it is true we know what is going on here…it is called 102 degrees.
May 18th, 2008 at 10:46 pm
Shaky credit probably IS a problem for SoCal rental applicants.
I have a SFR that is just over 3000 sq ft, that has typically - for the past 7 years - been rented from $3600-3800./month. As it approached a vacancy - my tenants purchased a house - I put it up for lease. In 4 weeks, I received 4 applications, ALL of which had SERIOUS credit issues.
In the past I have seldom had a place be vacant for more than a week, maybe two. I was not about to accept any of these applicants as my tenant. Finally, after 3 weeks vacant, I found an applicant who is acceptable. They have a few dings on their credit report, but nothing like the carnage of the four I rejected.
I haven’t seen so many poor applications on one property in at least 12-14 years. I’m sure this will shake itself out quickly - I hope so, for the people whose lives have been upturned.
May 19th, 2008 at 8:06 am
no surprise the collective renters in the area have much better than average qualifications. they’re just not willing to pay upwards of $600k for a detached stucco box, therefore wait on the sidelines much more than those in other areas. but if you believe many of the commenters on this blog, all renters are low-income losers with 400 credit scores.
May 19th, 2008 at 8:45 am
I suspect that most of the foreclosed deadbeats are moving out of state, or to the central valley. This is also why rents are not climbing upward very fast in OC, despite the return to renter status of many former “owners.”
May 19th, 2008 at 8:45 am
I suspect that most of the foreclosed deadbeats are moving out of state, or to the central valley. This is also why rents are not climbing upward very fast in OC, despite the return to renter status of many former “owners.”