RealPage, Inc. (NASDAQ:RP), a leading global provider of software and data analytics to the real estate industry, announced the full-year results of AI Screening, its AI-based resident screening solution. The results were published in a white paper available here. A key finding: AI Screening delivers an average savings of $39 per unit per year, proving that it pushes NOI higher by markedly reducing non-payment and lease default risks. The documented savings exceed early estimates of $31 per unit by 25%.
One national REIT reported savings of $1.1 million across its 52,000 units. Early lease terminations were reduced by 24% YOY, while skips and evictions were decreased by 38%. Smaller property managers reported similar savings in proportion with their portfolio sizes. Across 50,000 same-store leases representing 487 unique assets and 130,000 units, RealPage AI Screening also drove a 10.2% reduction in the average balance owed per move-in.
RealPage AI Screening taps into a database of more than 30 million lease outcomes to more accurately predict “willingness to pay,” a more sophisticated screening method than the conventional credit and background check. The study did not quantify increased income due to higher occupancy resulting from the software’s ability to identify good renters who might be rejected by conventional screening software.
“These are just stunning numbers,” said Rich Hughes, SVP Data Science at RealPage. “We’re not only talking about reducing risk of default and its costs, which is what we measured. Many users are also going to hit higher occupancy rates by being able to say ‘yes’ to people they’d otherwise have turned away. They are also able to reduce the high costs of turns due to defaults, boost their renewal rates, lower their marketing spend and perhaps be able to nudge rents up. So, the payoff goes well beyond the numbers documented in the study.”
RealPage introduced AI Screening to beta clients in April of 2019, and to the general public a month later, giving RealPage over a year to compare against the legacy screening model without AI capabilities.
“We believe these impressive results are going to turn a lot of heads and get people to move away from their conventional screening model and transition to our AI solution,” concluded Hughes. “The software is paying for itself many times over in bottom-line benefits.”
For more information about RealPage AI Screening, please visit https://www.realpage.com/apartment-marketing/resident-screening/.
RealPage provides a technology platform that enables real estate owners and managers to change how people experience and use rental space. Clients use the platform to gain transparency into asset performance, leverage data insights and monetize space to create incremental yields. Founded in 1998 and headquartered in Richardson, Texas, RealPage currently serves over 19 million units worldwide from offices in North America, Europe and Asia. For more information about RealPage, please visit https://www.RealPage.com.