First Advantage SafeRent Releases Third Quarter 2007 Multifamily Applicant Risk Index
ROCKVILLE, Md., Nov. 9, 2007óFirst Advantage SafeRent, Inc., a wholly owned subsidiary of First Advantage Corporation (NASDAQ: FADV) and the nationís leading and most innovative provider of screening and risk management services for the multifamily industry, today announced the release of third quarter 2007 multifamily applicant risk statistics.
The Multifamily Applicant Risk Index (MARI) is based on traffic quality scores from First Advantage SafeRentís statistical screening model and is updated quarterly to provide property owners and managers with a benchmark with which to compare their portfolioís performance. With this unique applicant risk index, property managers and owners are able to compare their applicant quality trends with that of the average MARI trends. This comparison indicates whether their portfolio is performing above, below or at market levels with respect to attracting and securing high quality, paying residents.
The third quarter MARI for the entire United States was 103. This is a 3 percent increase over the first quarter MARI, which confirms a trend of seeing higher MARI values during the traditionally high applicant traffic volume periods of the second and third quarters. The MARI is down 2 points from the second quarter 2007 value of 105, indicating a slightly riskier applicant pool for this quarter. Compared to the third quarter 2006, the MARI is down 1 point. When comparing applicants for one- versus two-bedroom units, the MARI is slightly higher for two-bedroom units at 104 compared to 103 for one-bedroom units in the third quarter (Click on Related Link to view Graph 1).
Regionally, the Northeast continues to have the highest MARI with a value of 113 while the Midwest had the lowest MARI this quarter with a value of 99 (click on related link to view Table 1).
From a Metropolitan Statistical Area (MSA) perspective, the three MSAs with the leading decreases in the MARI were Austin/San Marcos, TX; Denver/Boulder/Greeley, CO; and Minneapolis/St. Paul, MN-WI with decreases of 3, 6 and 7 points respectively. The three MSAs with the leading increases in the MARI were Jacksonville, FL; West Palm Beach/Boca Raton, FL; and Greensboro/Winston Salem/High Point, NC with increases of 4, 4 and 3 points respectively (Click on related link to view Table 2).
Understanding the Multifamily Applicant Risk Index (MARI)
The Multifamily Applicant Risk Index (MARI) is published quarterly by First Advantage SafeRent. It provides trends of national and regional traffic quality scores whereby a lower index value indicates an applicant pool with a higher risk of not fulfilling lease obligations. A MARI value of 100 indicates that market conditions are equal to the national mean for the indexís base period of 2004. A MARI value greater than 100 indicates market conditions with reduced average risk of default relative to the indexís base period mean. A value less than 100 indicates market conditions with increased average risk of default relative to the indexís base period mean. The MARI is derived from First Advantage SafeRentís Statistical Screening Model Ė the multifamily industryís only screening model that is both empirically derived and statistically validated. First Advantage SafeRentís Statistical Screening Model was developed from historical resident lease performance data to specifically evaluate the potential risk of a residentís future lease performance. The model generates scores for each applicant indicating the relative risk of the applicant not fulfilling lease obligations. A lower score indicates a more risky applicant.
To receive the MARI data for your Metropolitan Statistical Area or for questions about MARI, contact First Advantage SafeRent at marketing@FADVSafeRent.com. Data is also available at the property and sub-market level from Property Performance Analytics. For more information visit www.FADVSafeRent.com/PPA.
About First Advantage
First Advantage SafeRent, a wholly-owned subsidiary of First Advantage Corporation, is the nationís leading and most innovative provider of screening and risk management services to the multifamily housing industry. Through its offices in Rockville, Md., and more than 40 support offices nationwide, First Advantage SafeRent offers a single source for resident screening services, property performance evaluation tools, renters insurance and employment screening. More than 39,000 properties rely on First Advantage SafeRent every day to help them attain the highest quality residents and maximize profitability. First Advantage SafeRent leads the industry in innovations and enhancements designed to make the decision process faster, easier and more accurate. For more information, visit www.FADVSafeRent.com.
First Advantage Corporation (NASDAQ: FADV) provides innovative products and services that mitigate risk by helping businesses, non-profit organizations and government agencies make more informed decisions. Headquartered in St. Petersburg, Fla., the company has more than 4,700 employees in 11 countries that support over 90,000 clients globally. More information about First Advantage is available at www.FADV.com.
- Contact Information
- Sarah Mallon
- Marketing Manager
- First Advantage SafeRent
- Contact via E-mail
This news content may be integrated into any legitimate news gathering and publishing effort. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.