Do Tenant(s) have to give Rent Reporting Authorization
Question. Hello, as a new landlord I just found your website and would like to know how it works. As I understand it, I can sign up a tenant, but they will need to accept to allow me to share this information? I have great tenants, and this is their first rental so I would like to report rent payments for renters. My question is this, what about bad tenants? How do you share their bad tenant rent information? Wouldn’t they simply refuse? I do have another rental coming up soon. And I would like to have them sign off on this as a part of the application process, is that possible? I would like to ensure I am doing things legally.
Answer. Hello, good questions.
For current tenants, you can report tenant rent payments for previous months which they benefit from. EG good rent history.
With our Premium Package current and future tenant rent payments are reported to Equifax, tenants benefit from an improved consumer credit history and score. Tenants are more mindful of on-time rent payments where they know rent payments are reported to a credit bureau. The Premium Package benefits landlords and tenants.
Tenants do not need to agree to having their rent reported to the Landlord Credit Bureau, they are advised via email by US, that you are reporting tenant rent payments to a credit bureau. They are not required to sign-off, they are notified that rent payments are being reported.
Your Prospective Tenants should be advised by you, prior to signing tenancy/lease agreement, that rent payments are reported to the Landlord Credit Bureau and to Equifax. That should form part of your criteria. EG I report tenant rent payments to the Landlord Credit Bureau. Making this statement to a prospective tenant prior to completing a rent application will save you time and weed out bad tenants.
Rent reporting for renters serves as a deterrent for late rent payment, non-payment, and damage to property. This applies to all tenants.
If a prospective tenant does not want rent payments reported, and it is part of your criteria, then the decision to rent or not to rent is obvious. EG look for a tenant that does want rent payments reported.
Tenants who pay rent on time, will want their rent payments reported. Bad tenants won’t, and likely won’t rent from you. That is how you prevent rental income loss owing to bad tenants.
Please let me know if you have any other questions. Thank you.