First Advantage SafeRent Releases Second Quarter 2007 Multifamily Applicant Risk Index
ROCKVILLE, Md., Sept. 20 /PRNewswire-FirstCall/ -- First Advantage SafeRent, a wholly owned subsidiary of First Advantage Corporation (Nasdaq: FADV) and the nation's leading and most innovative provider of screening and risk management services for the multifamily industry, today announced the release of second quarter 2007 multifamily applicant risk statistics.
The Multifamily Applicant Risk Index (MARI) is based on data from First Advantage SafeRent's applicant screening model and is updated quarterly to provide property owners and managers with an important measure with which to compare their portfolio's performance. With this one-of-a-kind index, property managers and owners are able to compare their applicant quality levels 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 second quarter MARI for the entire United States was 105. This is a 5 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 was down 1 point from the second quarter 2006 value of 106, indicating a slightly riskier applicant pool when compared to one year ago. When comparing applicants for one- versus two- bedroom units, the MARI for both types of applicants was 103 in the second quarter (see Graph 1).
(Photo: http://www.newscom.com/cgi-bin/prnh/20070920/LATH011 )
Regionally, the Northeast continues to have the highest MARI with a value of 116 while the South had the lowest MARI this quarter with a value of 102 (see Table 1).
Table 1: Regional Multifamily Applicant Risk Index (MARI) Data Change from Change from Region 2Q 2007 1Q 2007 1Q 07 to 2Q 07 2Q 2006 2Q 06 to 2Q 07 Midwest 103 96 +7 102 +1 Northeast 116 108 +8 116 0 South 102 97 +5 103 -1 West 111 107 +4 111 0 U.S. 105 100 +5 106 -1From a Metropolitan Statistical Area (MSA) perspective, the three MSAs with the largest decrease in the MARI were Tampa/St. Petersburg/Clearwater, FL; Salt Lake City/Ogden, UT; and Kansas City , MO-KS, with decreases of 5, 5 and 8 points respectively. The three MSAs with the largest increase in the MARI were Rochester, NY ; Knoxville , TN; and Greensboro/Winston-Salem/High Point, NC with increases of 13, 8 and 7 points respectively (see Table 2).
Table 2: Metropolitan Area Multifamily Applicant Risk Index (MARI) Data MSAs With Largest Change from MARI Decreases 2Q 07 2Q 06 2Q 06 to 2Q 07 Tampa--St. Petersburg --Clearwater, FL 101 106 -5 Salt Lake City --Ogden, UT 102 107 -5 Kansas City, MO-KS 95 103 -8 MSAs With Largest Change from MARI Increases 2Q 07 2Q 06 2Q 06 to 2Q 07 Rochester, NY 120 107 +13 Knoxville, TN 120 112 +8 Greensboro-- Winston-Salem --High Point, NC 110 103 +7 NOTE: Largest Movers are selected from the 50 MSAs with the largest population.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 applicant quality levels 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 index's base period of 2004. A MARI value greater than 100 indicates market conditions with reduced average risk of default relative to the index's base period mean. A value less than 100 indicates market conditions with increased average risk of default relative to the index's base period mean. The MARI is derived from First Advantage SafeRent's Applicant Screening Model -- the multifamily industry's only screening model that is both empirically derived and statistically validated. The Applicant Screening Model was developed from data on historical tenant lease performance to specifically evaluate the potential risk of a tenant's future lease performance. The model provides scores for each applicant indicating the relative risk of the applicant not fulfilling their 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 [email protected]. Data is also available at the property and sub-market level from our Property Performance Analytics product. For more information visit http://www.FADVSafeRent.com/PPA.
About First Advantage
First Advantage SafeRent, a wholly-owned subsidiary of First Advantage Corporation, is the nation's 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 http://www.FADVSafeRent.com.
First Advantage Corporation (Nasdaq: FADV) combines industry expertise with information to create products and services that organizations worldwide use to make smarter business decisions. First Advantage is a leading provider of consumer credit information in the mortgage, automotive and specialty finance markets; business credit information in the transportation industry; lead generation services; motor vehicle record reports; supply chain security consulting; employment background verifications; occupational health services; applicant tracking systems; recruiting solutions; skills and behavioral assessments; business tax consulting services; insurance fraud, corporate and litigation investigations; surveillance; computer forensics; electronic discovery; data recovery; due diligence reporting; resident screening; property management software; renters insurance and consumer location services. First Advantage ranks among the top companies in all of its major business lines. First Advantage is headquartered in St. Petersburg , Fla., and has more than 4,700 employees in offices throughout the United States and abroad. More information about First Advantage can be found at http://www.FADV.com.
SOURCE First Advantage Corporation
