A credit score can be very helpful – if you want credit, that is. But while it is widely used to assess rental applications, it doesn’t necessarily paint an accurate picture about a tenant’s future rental payment behaviour. 

The PayProp Rental Risk Rating, launched at the (South African) PayProp Academy in February, addresses this shortcoming by combining credit bureau data from Compuscan with the rental payment history of tenants on the PayProp platform. The outcome is a metric that is statistically proven to be much better at flagging bad tenants than a credit score.

The PayProp Rental Risk Rating used in conjunction with our affordability risk metric (which, in turn, combines rental payments and debt obligations), tells estate agents everything they need to know about a tenant’s ability to pay rent. From PayProp’s point of view, it shows just how valuable a data-driven approach to business can be, to the point of inspiring new products!