It is unsurprising that reporting Rent Payments to credit bureaus like TransUnion, Equifax and Experian is now a best practice in rental property management. It could help build or boost your renters’ credit scores. But how will rent payment reporting benefit your rental business or management company? In this article, we explore why reporting rent payment histories matters to your business.
- Attract Quality Tenants. When potential renters know that you report rent payments, you could easily weed out those who are likely to not pay on time.
- Increase Timely Payments. When residents know that their payments are reported to credit bureaus, they are more likely to consistently pay rent on time. Knowing that their rental payment history could impact their credit scores motivates them to be financially responsible and fulfill their financial obligations. This effectively reduces delinquencies.
- Avoid Eviction and Post Move Out Collections Cost. Non-payment is usually the reason of eviction. By proactively motivating residents to pay on time the chances of evicting them because of non-payment is reduced.
- Generate Additional Revenue. Not all rent reporting solutions provide a revenue share option. By enrolling in Sperlonga’s Rent Payment Reporting program, a 300-door property could generate potential revenue of up to $27,750 in the first two years.* If you have fewer doors, you could still generate revenue by offering this amenity to your renters. Do you want to know how much you could generate? Just complete this form and we will reach out to you.
- Improve Retention Rates. Reporting resident payment histories to credit bureaus provides your residents with the opportunity to establish or improve their credit reports and scores. This enables them to build creditworthiness, which can open doors to more favorable financial options such as lower interest rates on loans or increased access to credit. This is a valuable amenity that your residents would appreciate – thereby encouraging them to stay at your property.
- Differentiate Your Property from Competition. According to a TransUnion study, 2 out of 3 would choose a property that reports rent than one that does not. In this competitive market, this is definitely a plus. By including this amenity in your resident package and marketing materials, potential residents could get more value from the rent they’re paying.
Reporting resident payment histories to credit bureaus is a game-changing strategy that benefits both your residents and rental property business. Report resident payment history to credit bureaus and watch your business thrive in today’s competitive rental market.