A TransUnion analysis found that prior evictions and rental-related collection records are highly predictive of future evictions. 

The finding comes as involuntary turnover - residents skipping out on payments or other eviction causes - continues to impact property managers. Eviction losses average $3,500 per unit, which includes court costs, lost revenue and other operating expenses.

TransUnion's analysis also found that evicted residents have nearly three times as many prior eviction and rental-related collection records than non-evicted residents. The analysis examined the records of individuals who were evicted compared to those who were not evicted from nearly 200 properties. In the "not evicted" group, 5.5% of residents had prior evictions. For those who were ultimately evicted, that number rose to 21.7% of residents with a prior eviction. 

According to the analysis, evicted residents have twice as many prior rental-related collection records than non-evicted residents.

"Rental evictions and collections records offer a unique, insightful look into a resident's current record," said Mike Doherty, senior vice president of TransUnion's rental screening solutions group. "Rental-related collection records may be timelier than eviction public records, which can take weeks or months to process through the system, and the combination of the two helps property managers make smarter decisions about whether to lease to a potential resident.”

TransUnion's proprietary ResidentScore (based on a scale of 350 to 850) aggregates collection and other consumer report information to identify the likelihood of costly negative resident outcomes or future evictions. TransUnion's analysis showed that the eviction rate for consumers included in the study who had a score between 650 and 749 was only 0.3% while this percentage rose dramatically to 12.3% for those consumers with a score of between 350 and 449.

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