Reviewing background reports can be time intensive, and the nuances that may impact the quality of a tenant can be easily missed. It’s time for a new solution: ResidentIQ, where science and simplicity meet.
What is a Resident IQ (RIQ) Score?
The Resident IQ score (also referred to as the RIQ Score) was built from analyzing data on hundreds of thousands of Lease Performance Outcomes from a wide assortment of resident rent rolls. Using statistical analysis, we were then able to evaluate and identify large groups of consumer patterns that established clear correlations between a variety of elements in a profile (credit factors, tenant records, subprime data, etc.) and lease defaults. From this, we developed predictive data points that can be used to reliably calculate the weight of importance for each predictive element in an applicant’s profile. This allows us to provide a more finely tuned, statistically backed calculation of an individual applicant’s risk of default.
We utilize Artificial Intelligence that is unparalleled in the screening industry to methodically analyze the background of your applicants in accordance with FCRA laws, Fair Housing laws, and the HUD guidelines developed to address perceived disparate impact against minorities.
Credit Factors: The ResidentIQ score considers the percentage of negative tradelines to positive tradelines, bankruptcies, income-to-rent ratio, evictions, collections and whether they are paid or not, and banking history. Medical and student debt are disregarded. These items are scored algorithmically based on a deep statistical analysis of the historical rental performance of renters throughout the United States.
The bottom line: ResidentIQ does the work for you by using an intricate statistical scoring model in concert with additional selection criteria from your management company to provide a rental risk recommendation for every applicant.
How the RIQ Score is used
Resident IQ, powered by Western Reporting, utilizes sophisticated, statistic-backed calculations across a variety of data points to find you the highest quality tenants while being compliant with Federal Fair Housing standards. These data points are evaluated in real-time to register a ResidentIQ Score for applicants, then provide a recommendation based on each property’s specific screening criteria and risk management goals. This includes financial history, rental history, eviction records, criminal background, income, employment history, and more.
Setting/Adjusting the RIQ Score
You have the ability to set and/or instantly modify your risk tolerance on each property based on many factors such as occupancy levels, market conditions, demographic, housing type, historical data, etc. With a simple slider, you can immediately modify your risk tolerance, knowing that the complex statistical analysis beneath the ResidentIQ score will continue to provide you with clear insight into each applicant. Our advanced reporting provides you with an even deeper analysis of the trends that matter to your specific market(s) and makes it clear when it is time to make adjustments.
*NOTE: Please see the article, Setting/Adjusting the Resident IQ Score for more information and instructions on setting the RIQ score for the property.
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Resident IQ Score Examples
The scores below are common settings in the industry however scores can be customized to meet the requirements of each property.
Property Class A RIQ Score Settings
Property Class B RIQ Score Settings
Property Class C RIQ Score Settings
Property Class Affordable RIQ Score Settings
Property Class Student RIQ Score Settings
