Rental home investors not only need to monitor their own credit, but watch for other clues of their identity being stolen as well. Equipped with the data from Equifax, criminals can obtain new social security cards and driver licenses in your name. When it comes to signing new leases, or accepting co-signers, landlords should be extra diligent in verifying identity, without making the application and approval process to difficult or unappealing to navigate.
Rental Property Demand
The above is only likely to spur more demand for rentals. Large funds and apartment complex managers may be slow to adjust to the new credit norm. Many home buyers may fall out of the process and become long term renters. This may even be true of the oldest of Generation Z, who could have credit compromised before they even get a chance. This will only strengthen the already record setting demand for rental housing in the US. In turn, this could help to continue to spur growth in rental rates and operating income.
Financing for Rental Homes
There could be some new regulations for those who handle credit data on their way. Lenders may also be forced to readjust, due to a potential increase in chargebacks and costs associated with combating more complex fraud, and lower credit scores. In the interim this could present some challenges for those going through traditional banks and mortgage channels to finance residences, vacation homes, and individual investment properties. However, there are alternative lenders which may prove a better match with rental home financing programs such as no ratio loans, stated income loans, and non-recourse asset based lending.