One of the top questions that landlords have is how to report tenants to the credit bureaus, an option unavailable to many property owners with fewer tenants. Why is it hard to report tenant rent pay? A merchant account is usually necessary for reporting rent payments to the three major credit bureaus.
However, landlords with a smaller volume of tenants can take advantage of services which resolve the issue of how to report tenants to the credit bureaus. Regardless of which site you use to report your tenant’s payments to the credit bureaus, you will usually need to set up a profile for reporting. Once set up, you’ll be able to report your tenants’ payments easily. Consider using the Landlord Credit Bureau to Report your Tenant Rent Payments.
Who Pays When Reporting?
Fees are involved with services you use for the how to report tenants to credit bureau process. Sometimes these take the form of regular monthly service fees, based on the number of accounts serviced. Other companies sometimes use an annual fee structure.
Shopping around for different options before making a choice is an excellent way to make sure you’re choosing the right option. After looking at a few options, you might be able to narrow down your choices somewhat before making your final choice.
If you are undecided on whether you will charge a fee to report tenant rent pay or not, bring it up to your tenants. Either splitting the cost with you or paying the price are options to consider. Should the tenants decide to opt-out, you will need to pay these costs yourself.
An Option for Landlords
Landlord Credit Bureau offers services that allow landlords to report on tenants, as well as access a database letting you know which tenants are good and which are best avoided. Access to these tools helps landlords find better tenants more likely to pay on time.
Both late and missed payments can end up on the tenant’s credit report, answering the question of how to report tenants to credit bureau. Having a late payment reported on a tenant’s credit score can be a powerful incentive for the tenant to pay on time. The consequences of paying late can be reasonably long-lasting for the tenant.
Collecting Unpaid Rent
Collection agencies can pursue a tenant for unpaid rent, usually either for a percentage of the amount owed or a flat fee. The collection agency has the option of reporting the account to the credit bureaus if the amount is uncollected. For many tenants, the thought of dealing with a collection agency on its own is enough to make tenants reconsider getting delinquent on their payments.
One of the things to look for when choosing a collection agency is whether they report to all three credit bureaus or not. A collection account of this type has a severe enough impact on a tenant’s credit score and their future ability to rent an apartment easily. Consequences for skipping payments or paying late can make an impact on bad tenants. The Landlord Credit Bureau can help you prevent losses and reward good tenant behaviour.
Getting a Civil Judgement When Necessary
If you’ve had to resort to evicting a tenant or they have simply left without paying, suing the tenant to recover the financial losses may be an option. A civil judgment will become part of the public record, which will serve as a red flag to others thinking of renting to that person. Tenants will often wish to avoid such consequences, and be more likely to pay on time.
Another outcome of the civil judgment is that the record goes on the report tenant rent pay part of the credit report. Civil judgments not only stay on a credit report for seven years but can also result in 100 points being taken off the tenant’s credit score. Renters who hope to qualify for credit further down the road will want to avoid such consequences. The Landlord Credit Bureau (LCB) can help you prevent these consequences.
Is There Any Benefit for Landlords Reporting Rent Payments?
One definite benefit that comes from reporting rent payments is better landlord and tenant accountability. Sometimes, knowing that they will be rewarded with a positive remark on their credit report is a perfect incentive for tenants to pay on time and conform to the lease agreement.
You will also have the chance to help other landlords by reporting this history. Many landlords struggle to find good tenants because on-time payments usually receive little attention. You can help play a role in showing other landlords which tenants are keepers.
No landlord is obligated to report tenant payments to credit bureaus. However, doing so can help increase the likelihood of tenants keeping their rent paid on time. Knowing that you have recourse to services that help you achieve these goals is always a relief for any property owner.
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This post is provided by the Landlord Credit Bureau to help landlords and property managers reduce the risks of rental income loss and avoid rent theft. The Landlord Credit Bureau provides articles on Reporting Tenant Rent Pay and Tenant Screening to ensure necessary information is readily available to all Landlord & Tenants.
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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.