What if you could differentiate your rental property from competitors and attract well-intentioned renters while also helping underrepresented renters build valuable credit histories?
TransUnion is a leader in the growing movement to include more alternative financial data in the consumer reporting ecosystem. One way we’re doing that is through ResidentCredit®, our rental-payment reporting solution that helps property managers report residents’ rental payments to TransUnion.*
How renters stand to gain from rent reporting
TransUnion research shows that when rent payments were included in the credit file, consumers experienced an average increase of nearly 60 points to their credit score.
Consumers with the least access to favorable terms for financial goods and services, as well as the credit invisible and subprime cohorts, stand to gain the most with the largest credit score growth.
“Rent is one of the largest payments that millions of Americans make each month and this valuable payment history can serve as a prime support to improve a consumer’s financial standing,” said Maitri Johnson, Vice President of TransUnion’s Tenant and Employment Screening Business. “Consumers that make these on-time rent payments can build their credit history, gain more access to credit and participate more fully in the financial ecosystem.”
How rent payment reporting can help property managers
Reporting rent payments with ResidentCredit can help your rental property stand out from the competition because it’s a way for residents to establish and build their credit histories, which they may not be able to accomplish at other properties.
According to a TransUnion study, if choosing between two identical apartments, 67% of renters said they’d choose the apartment with payment reporting in place. The study also found that 7 in 10 renters are more likely to make on-time rent payments if management companies reported payments to a credit bureau.
Reporting monthly rent payments to TransUnion directly affects your residents’ credit scores while encouraging on-time payments, thus having the potential to decrease delinquency. Our data shows that 26% of residents whose payments were reported decreased late payments by 26–50%.
At the same time, on-time renters strengthen their credit profiles and gain greater access to financial products, such as credit cards and auto loans. According to our analysis, 60% of renters may see their credit scores increase the first month of reporting.
With ResidentCredit, property managers can:
- Reward well-intentioned renters and discourage late payments
- Differentiate from the competition and convert more and better leads into renters
- Appeal to conscientious residents who care about their financial reputations
- Improve cash flow through reduced delinquencies
Get started with credit reporting at no cost to you*
Contact your TransUnion rep today or visit our website to learn how TransUnion ResidentCredit can help you and your renters. There’s so much to gain.
* ResidentCredit is complimentary – there’s no charge to report. However, a one-time setup fee may apply; terms and conditions for ResidentCredit apply.