In the FrontLobby

When my husband and I owned a property management business, we’d frequently get calls from new landlords in crisis. One such call was from a man who bought and renovated a property. Sadly, he’d brought in less than stellar tenants and was at his wit’s end trying to evict them.

Tenant screening is often one of the least enjoyable aspects of managing a property. Yet, having a robust Tenant screening process is critical to minimizing risk and identifying the best fit for your rental.

The ability for Landlords to report Tenant rent payments to credit bureaus is relatively new. But it is one that is making waves across the country as Landlords seek to attract Tenants with histories of timely payments and avoiding those who have long lines of late payments, delinquencies, and even evictions in their past.

A credit report summarizes how promptly an individual pays their bills. Credit reporting agencies assign a credit score ranging from 300 to 850 based on bill payment habits and other factors in handling credit responsibly.

When a rental unit becomes vacant, a landlord or property manager needs to fill it with new occupants who will pay their rent on time every month and leave the property in excellent shape. To find tenants, property owners and managers may be inclined to run an ad, see who turns up to visit, and go with their intuition.

Rent reporting to credit bureaus is one of the easiest ways for Landlords to reduce income loss and reward their responsible Tenants with good credit. Landlords can lower payment delinquencies by 36%, while Tenants have reported bumps of more than 40 points in their credit score in a matter of months.