A New Way To Use Data

*A New Way To Use Data*
**By Tony Garritano**

TonyG***We talk a lot these days about a more data-driven mortgage process. Everybody wants to be more transparent. But data has other uses, as well. For example, intensified investment activity in the single-family rental marketplace has created a strong demand for specialized, analytical rental market data, according to Walter Charnoff, CEO of RentRange. Here’s the scoop on this emerging trend:

****Investment in single-family rentals has increased significantly in the past year, spawning organizations such as the Wall Street Journal and Morgan Stanley to label the segment as a new asset class. “Institutional migration into this sector carries with it an abundance of opportunities, including a liquid disposition channel for servicers; an attractive vehicle for both debt and equity investors to re-enter the U.S. housing market; and a fresh supply of single-family rental inventory for displaced homeowners,” said Charnoff.

****Rental intelligence—that is, rental pricing information based on formal, objective analyses—is an essential element of the single-family rental sector. Servicers require reliable rental information to evaluate investor-centric disposition options. Investors need market-level data to identify performing geographies, and address-level data to gain accurate perspective for purchase decisions. Objective rental estimates enable servicers and investors to achieve optimal pricing on rental homes and to accurately monitor rental portfolio performance.

****RentRange spent five years developing a standardized single-family rental data warehouse, and released a reliable address-level rental AVM. Prior to this, there had been no standardized repository of single-family rental data. Even national MLS information contained far too few transactions to be relevant as a stand-alone resource. Before RentRange, data was subjective, lacked data depth and quality, and failed to produce statistically sound results.

****In response to growing industry demands, RentRange recently released its Macro Data Reports, which are available on a national basis at the MSA, city, county, and zip code levels. Reports are updated on a monthly basis, and are available for purchase at a one-time, bi-annual, quarterly or monthly frequency. A historical data trail of up to forty-eight months is also available upon request. These reports deliver timely, comprehensive market level data called for by participants in the REO-to-Rental marketplace.

Tracking The Rental Market

*Tracking The Rental Market*
**By Tony Garritano**

***As more people move away from owning a home in favor of renting a home, information on rentals is in demand. The fact is that people are also being forced to rent. If your house is foreclosed on you are probably going to be a renter very soon. On a similar note, mortgage lenders and investors are increasingly becoming landlords as a result of mass foreclosures. So, everyone in our space needs good rental data. To this end, a company called RentRange has developed a tool to zero in and optimize rent estimates by property; pre-fill or supplement traditional AVMs, BPOs and appraisals; determine sell/rent/hold strategies and more. Here’s what they offer:

****This automated valuation solution by RentRange provides key information about localized vacancy rates, rental market strength indicators and more vital intelligence. Specifically, RentRange, LLC is a provider of single-family rental market intelligence to the financial services and real estate industries. With a core focus on national residential rental data, analytics, and valuation solutions, RentRange delivers a wide assortment of address and geography-level knowledge and rental AVM technologies designed to fit the demands of any sized organization.

****The company offers geography-driven regional data on rental properties, both single family and multifamily apartment/condo/townhome residences. Macro data is available at MSA, city and zip code levels in a variety of formats designed to provide vital decision-making information at top speed. RentRange also offers address-level rental property AVM (automated valuation model) with confidence score, neighborhood rent averages and trends, area vacancy rates and rental market strength indicators.

****I’ll be sure to keep you updated on RentRange and others looking to help the space become more educated about how to deal with rentals.