The federal government is stepping in to assist homeowners, but renters are being left out in the cold:
One easy way landlords and property managers can prepare for an economic downturn is to report resident rental payments to the major credit bureaus. Unemployment is expected to rise steeply, and your tenants will certainly be impacted. Reporting tenant on time rental payments to the bureaus will help improve their scores by crediting them for their largest monthly payment. This can help them through this critical time.
Reporting tenant on time rental payments to the bureaus will help improve their scores by crediting them for their largest monthly payment.
Here is the result of one resident customer, achieved in just 14 days with the program.
When signing up for a program that reports resident payments, it is critical to choose one that reports both positive (on time) payments and delinquent (late and skipped) payments. Managers and owners have found that including all residents in the program, as opposed to an opt-in program that only reports on time payments, creates a payment priority that drives down delinquency.
Here is what happened to delinquency for one property management client in Seattle, after launching the credit reporting program.
A credit reporting program also allows you to take corrective action far in advance of eviction. With a moratorium on evictions growing across the country during this pandemic, a credit reporting program could be your only available corrective action for delinquency.
CredHub is staying on top of changing regulations across the states in which our clients do business. Our best to you and your rental communities through this disruptive and uncertain time. Stay safe, wash your hands, and take action now to minimize the impact of economic downturn.
CredHub is a tool for property managers to help reduce late and skipped rent payments, and help residents build credit by reporting their on-time payments to the major credit bureaus.