Rental payments are the lifeblood of property management businesses big and small. But what if paying that monthly charge benefitted your renters beyond securing a roof over their heads? When you encourage your tenants to report Rent payments, you’ll encourage more on-time transactions while helping them build credit.
What is Rent Reporting?
Rent reporting is the process of reporting verified rent payments to major credit bureaus (Experian, Equifax, and TransUnion) with the goal of building credit history. Monthly rent payments are often tenants’ biggest expense, and it’s only fair that they get credit for paying it consistently and on time. With the right property management software, this process is simple and easy.
Some landlord software companies charge either the landlord or the tenant an additional fee for Rent Reporting services. Previously, your renter would have had to pay companies like LevelCredit $6.95/month for rent reporting, according to NerdWallet. Why should tenants have to pay for rent reporting, not to mention that these services often require a phone call with you to verify information?
But for TurboTenant landlords and tenants, rent reporting is 100% free. If you collect rent online with us, your renters can opt into our rent reporting program — and best of all, we only report tenants’ on-time rent payments to TransUnion.
Because we don’t report late payments, your renters should expect to see a credit score increase* if they consistently pay their monthly fee as outlined in your lease agreement. Our rent reporting system provides ongoing reporting without costing you time, money, or stress.
*While we expect our rent reporting program to help improve your renters‘ FICO scores, we can‘t guarantee an increase as there are many factors outside of our program that impact credit scores.
Did You Know?
In July 2021, California passed Senate Bill 1157, which requires operators of subsidized multifamily units across the state to provide tenants with the option to have their rent payments reported to a major credit bureau.
Who Benefits From Rent Reporting?
Your tenant’s rental payment history can impact their future in a meaningful way, and there are additional benefits that you’ll enjoy if they opt in.
Renters appreciate rent reporting because:
- This system rewards consistent rental history with the opportunity to build good credit history using their largest monthly bill
- Good credit can translate into greater opportunities from lenders down the line
- This process is particularly beneficial for low-income renters who may not have had equal opportunities to build their credit history
Landlords value rent reporting because:
- Knowing that their rental payment information will be reported to a credit bureau provides tenants with another compelling reason to pay rent on time and in full
- Tying on-time rent payments to a tenant’s credit report empowers them to take charge of their future, which can boost your current relationship
- There’s no actual cost involved (if you’re a TurboTenant landlord, that is!)
How Can I Help My Tenants Take Advantage of Rent Reporting?
All you have to do is collect rent online through TurboTenant! From there, your tenants can opt into our Rent Reporting system for free. Once Rent Reporting is enabled, TurboTenant will automatically report only their on-time rent payments to TransUnion for free, whether you collect rent through TurboTenant or you track rent payments using our platform. Just as easily as your renters can turn on Rent Reporting, they can also turn it off with a click if needed.
If you’d like to share the good news with your tenants, simply copy and paste the information below into your preferred method of communication:
Hello!
I just learned that TurboTenant offers a free Rent Reporting service, which may help boost your credit score through TransUnion. Their Rent Reporting only shares on-time monthly rent payments, making it simple for you to build your credit history without taking on additional debt.
If you’d like to opt into their free program, click this link and follow the instructions provided.
We hope you and your tenants enjoy all the benefits that rent reporting has to offer! The TurboTenant team has also recently unleashed a host of new perks to put your rent collection on autopilot, along with tips to help you avoid common rent collection issues (like late payments).
If you haven’t signed up for TurboTenant yet, now is the perfect time to cash in on all the great features we offer, from free rent reporting to Autopay and so much more!
The post Why Landlords Should Encourage Rent Reporting appeared first on TurboTenant.
This post first appeared on TurboTenant Blog - Resources For Landlords, please read the originial post: here
