#United States #Santa Barbara #Yardi #Nova Credit #Cash Atlas

Yardi and Nova Credit Collaborate for Greater Financial Inclusion in Tenant Screening

Yardi, a leader in real estate software solutions, has taken a significant step toward enhancing financial inclusivity in the property rental market by integrating Nova Credit’s Cash Atlas cash flow underwriting solution into its ScreeningWorks Pro platform. This collaboration aims to transform how landlord and property managers evaluate potential renters, particularly those who have been overlooked by traditional credit assessments.

The Problem of Credit Invisible Renters

According to research by Oliver Wyman, nearly 49 million American adults, which is approximately 19% of the adult population, remain either credit invisible or possess insufficient credit history for standard scoring methods. This limitation has historically barred financially responsible individuals—such as gig workers, recent graduates, immigrants, and young professionals—from securing rental housing opportunities despite their ability to pay rent responsibly.

In stark contrast, data from the Federal Deposit Insurance Corporation (FDIC) indicates that an overwhelming 95.5% of U.S. households maintain bank accounts. This presents an opportunity: by leveraging transaction data from these accounts, property managers can gain a more comprehensive view of renters' financial behavior, which often reflects their reliability in paying rent.

Innovative Screening Methods

The integration of Cash Atlas into ScreeningWorks Pro represents a groundbreaking advancement in tenant screening. With over 6 million units using this updated platform, property managers can now transition towards a more inclusive and objective evaluation process. Patrick Hennessey, the vice president at Yardi, points out that traditional credit data frequently fails to encompass individuals who are financially responsible but have not actively utilized credit products. The shift towards cash flow data allows for a fuller financial picture, thereby enhancing the predictive capability concerning a tenant's ability to fulfill rental obligations on time.

Advantages for Property Managers

1. Enhanced Risk Assessment: The use of Cash Atlas provides access to real-time financial data, allowing for a more accurate prediction of payment capabilities than traditional credit data.
2. Access to New Markets: Rental companies can expand their services to growing segments of tenants, including individuals in non-traditional employment and those new to the country.
3. Broader Applicant Pool: By connecting with the 49 million credit-invisible individuals, property managers can reduce vacancy rates and fill units more quickly.

Benefits for Renters

The integration promises fairer evaluations for rental applicants, relying on verified and current bank data to assess their capabilities instead of outdated credit histories. This approach not only enhances access to housing for responsible renters but also paves the way for them to build and improve their credit in the long run.

Akaash Gupta, head of tenant screening partnerships at Nova Credit, emphasizes that this new method enables property managers to uncover potential renters who would otherwise remain unnoticed under traditional screening processes. This strategic advantage can change the game in competitive rental markets and provide a more equitable perspective on what constitutes a 'qualified' applicant.

Conclusion

As Yardi and Nova Credit push forward with their partnership, the rental landscape is set to evolve significantly. This revolutionary use of cash flow analysis in tenant screenings marks a new era in real estate, where financial inclusion is prioritized, and more responsible renters find their opportunities to secure housing.

For further details on this innovative resident screening solution, interested parties are encouraged to contact Yardi representatives.

About Nova Credit

Nova Credit is a specialized credit infrastructure and analytics company that utilizes alternative credit data to empower businesses in their growth strategies. Through its suite of tools—including Cash Atlas for cash flow underwriting—Nova Credit assists lenders and landlords in making informed financial decisions. Learn more about their offerings at novacredit.com.

About Yardi

Yardi develops a comprehensive software platform tailored for real estate companies worldwide, enhancing property management solutions and tenant screening capabilities. To discover more about Yardi's innovative approach, visit yardi.com.