We’re thrilled to introduce the latest addition to our suite of Cashflow-driven Scores: the Flexible Rent Score. Designed to meet the evolving needs of property management solution providers, this score helps you confidently assess tenant risk, offer personalized payment options, and reduce defaults—all while expanding approvals.
What is Flexible Rent?
Flexible Rent products allow tenants to divide their monthly rent into smaller, more manageable installments. These services pay the full rent amount upfront to landlords, ensuring timely payments, while tenants repay the service according to a personalized schedule aligned with their cash flow. This approach reduces financial strain on tenants and provides consistent cash flow for property managers.
Why a Flexible Rent Score?
Rental markets are changing. More tenants, such as gig workers and part-time employees, need payment options that match their income flow. At the same time, property managers face mounting challenges:
- High Default Risk: First payment defaults and NSF (Non-Sufficient Funds) fees eat into profits and operational efficiency.
- Ineffective Screening: Generic credit scores fail to capture the unique repayment behaviors of today’s diverse renter base.
- Missed Opportunities: Safe, reliable tenants often get overlooked because traditional assessments can’t accommodate nontraditional incomes.
The Flexible Rent Score addresses these challenges by offering a clear, data-driven prediction of a tenant’s likelihood to pay a flexible rent payment within a given month. This gives property managers actionable insights to:
- Reduce Defaults and NSF Fees: Spot reliable tenants and avoid costly missed payments.
- Offer Flexible Payment Options: Approve more tenants and provide customized rent schedules aligned with their cash flow.
- Expand Approvals with Confidence: Say “yes” to more tenants, even those with nontraditional income sources.
Check out this video:
Use Case: Smarter Tenant Screening
Imagine you’re evaluating a potential tenant who’s a gig worker with irregular income. With generic rank-ordering scores, they might seem risky. But with the Flexible Rent Score, you get a more accurate assessment of their repayment potential.
- Lower scores highlight potential risks, allowing you to implement safeguards before approving the lease.
- High scores suggest dependable tenants who can pay promptly.
- If the score indicates the tenant is 80% likely to pay on time, you can confidently adjust terms, request a guarantor, or offer a tailored payment plan.
How It Works
The Flexible Rent Score leverages Pave’s Cashflow Attributes to evaluate rent-specific financial behaviors.
- Real-Time Financial Data: We analyze up-to-date income, spending, and account balances.
- Identifying Rent Transactions: Our system detects rent-related transactions and assigns confidence levels to each.
- Predictive Modeling: Using machine learning, we forecast the likelihood of timely flexible rent payments.
- Custom Payment Plans: Combine the score with Cashflow Attributes (like income patterns) to align rent schedules with tenants’ cash flow.
Want deeper insights? Rent-specific transactions are accessible through the Rent endpoint in Pave’s API.
Real-World Impact: Doubling Approvals, Reducing Defaults
The Flexible Rent Score isn’t just theoretical—it delivers measurable results. In one case study, a flexible rent provider achieved:
- Approval rates jumped from 18% to 50%.
- Collections dropped from over 30% to under 6%.
By analyzing key behaviors like income stability, savings patterns, and repayment trends, they confidently approved more tenants while reducing risk.
Unlocking Flexibility for Renters
Flexible Rent products, powered by the Flexible Rent Score, let tenants break rent payments into manageable installments. Landlords get full rent upfront, while tenants repay according to personalized schedules. The result?
- Reduced financial stress for tenants.
- More consistent cash flow for property managers.
A Better Way to Approve Tenants
With the Flexible Rent Score, property managers can:
- Approve more qualified tenants.
- Offer tailored payment plans to meet tenants’ unique needs.
- Reduce risk and improve operational efficiency.
Ready to See the Flexible Rent Score in Action?
Let’s build a future where rental flexibility and financial security coexist. Book a demo to learn how Pave’s Flexible Rent Score can transform your property management solutions.
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