Core Insights - Property managers are facing challenges as tenant applications declined by 10% year over year in the second half of 2025, with the most significant drop occurring during the peak summer moving season [1][2] - The decline in applications is primarily concentrated in the western and southwestern states, with Maine experiencing the steepest drop of 25% [2] - To maintain occupancy, property managers have lowered their decision points by an average of 6 points, which may increase tenant risk [4] Industry Analysis - The analysis conducted by TransUnion examined over 2,400 same-store properties across 47 states, providing a comprehensive view of the rental market [3] - Factors affecting the rental market include a record high in new apartment construction and renters' reluctance to move due to economic uncertainty [4] - Property managers are encouraged to adopt rental-specific risk scoring models, such as TransUnion's TruVision™ Resident Score, to better assess tenant risk [5][6] Tenant Evaluation Strategies - Traditional credit scores may not accurately reflect a tenant's ability to prioritize rent payments, leading to potential misjudgments in tenant selection [6] - The analysis suggests that applicants with higher income-to-rent ratios can still be reliable tenants if they maintain a solid credit or resident score, despite the challenges posed by rent growth outpacing income growth [6]