The global tenant score

The home rental market is huge. In some cities it is very competitive to rent an apartment.

One of the biggest issues for landlords is how they would trust you with their property. Here in Germany they use credit score and your salary as proxies for how good you are. This is not fair.

There is an opportunity for a company to become the global tenant score provider. A company you pay money for to go talk to your current/previous landlord(s) and get feedback on you. Then you can use this score to apply for apartments.

I think this is more fair than judging you based on your current salary.

  • But this criteria won’t be fair to new comers, those who have no past record to support them.

    There must other ways for the assessment, which is usually the credit score along with a deposit that acts as insurance.

  • I firmly agree on the unfairness of Schufa random scoring system. Nevertheless, that’s extremely hard to be globalized.

    First off, the way Schufa works is unfair, but can be way better if they just majorly relied on the time you take to pay your bills alongside the other factors (how many bank accounts do you have, how many mobile contracts do you have, and so on). That variable has be to most important variable (predictor) with the other factors which are being used now.

    Secondly, talking to the landlords is not a sufficient factor that potential landlords can authentically rely on. Financial factors (other than paying the rent on time) have to be taken into considerations.

    Thirdly, the number of landlords you usually deal with in a 1 or 2-year time window is too few as well.

    Fourthly, globalizing such an idea in differently-behaving markets (especially given the change in the demand and supply) could be unfair. Keeping in mind that the insecurities for the different societies is a relative thing, not absolute.

    Search on Kreditech startup. They are enormous data points from different aspects to predict how committed would an under-banked customer be to pay the defaults. The Schufa scoring system could be partially the same, but few more data points which are being accessed via the network operators and banks.