This might come as a surprise to some landlords, but a majority of tenants actually want to report rent payments to a credit reporting agency.
A recent survey conducted by TransUnion credit bureau shows that a whopping 73% of tenants say that reporting monthly rent payments would motivate them to pay rent on time. That number is even higher among younger renters.
When given the choice between a unit with a landlord who does not report rent payments and a unit where the landlord does report payments, 67% of renters would choose the unit where the landlord reports rent payments.
So why do renters want to be reported? Because it helps them build credit. In a TransUnion study conducted in 2017, 100% of tenants who were considered unscorable for credit were able to build a record within one year by paying rent on time. And those with subprime credit saw their scores increase by as much as 26 points after twelve months.
There may be no better incentive for tenants to pay rent on time than the knowledge that rent payment history is being reported. Yet, only 17% of property managers say they report rent payments.
This is true even though reporting rent payments could attract the most reliable tenants and reduce the risk of evictions for failure to pay rent or chronic late payments.
According to TransUnion, one reason for this discrepancy may be a misconception that reporting payments is difficult or cumbersome. But it’s easy, especially when landlords use TVS. Click here and see for yourself.
This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).
Click Here to Receive Landlord Credit Reports.
Disclaimer: The information provided in this post is not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.