The ability to report rent payments each month to a credit bureau is a significant breakthrough for landlords in the battle for on-time rent. Before that service became available, landlords were the most likely creditors to be ignored.
A new survey points to another compelling reason landlords should report rent payments: tenants want them to.
The survey, conducted by TransUnion credit bureau, revealed that tenants want their landlords to report rent payments to a credit reporting agency, like the Report Rent Payments service provided by TVS. Over 70% of these renters say that reporting payments each month motivates them to pay rent on time. Over 65% say when given a choice, they would pick a landlord who reports rent payments.
The strongest motivating factor for these results is the realization that reporting rent payments helps tenants build and maintain healthy credit. And that has many benefits, including a better chance at landing a mortgage or car loan. Younger renters, who have had fewer opportunities to build credit, were the most enthusiastic to report rent payments, according to the survey.
Reporting rent payments to a credit bureau is the best strategy for on-time rent payments — far more effective than late fees, rent incentives, or threatening eviction. It also attracts more reliable renters and reduces the risk of eviction for nonpayment or chronic late payments. Yet, some landlords remain hesitant to use the service.
If you are concerned that the process of reporting rent payments is onerous, think again. It’s quick, easy, and when you consider the time and money saved, worth every second. Click here to sign up to Report Rent Payments through TVS. Your tenants will be glad you did.
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.