Can I Report GOOD Credit For Renters Paying On Time?
I'm curious if, as a landlord, I could report to the credit agencies that my tenets were and did pay all of their rent on time to help out their credit reports? My target market for tenets is college students so I think that if I could report favorably on their credit that this could be a nice addition to help "seal the deal" on good tenets and help to get rent paid on time.
Maybe have to do something like make the rent due at the end of the month somehow so that technically they were living there on credit? That would take some effort to figure out how to start the lease with some rent but it could just make the rent due on the last day of the month instead of the 1st.
Anyone with any experience or ideas on this one?
NOPE , but you can be a future referrence for them.
www.Yes.They can save all their can cancelled checks for at least a year, more is better, to prove that they made consistent payments, and with you as a reference to establish credit.
The previous post has inaccurate information. You can be set up to report your renters on a montly basis to the CRA's one or all three, but it comes at a cost, usually a monthly fee. Depending on the number of rentals you have will determine the cost effectiveness.
Most landlords do NOT do this, though I think it is a good idea personally. But most are not willing to spend the extra money to do it. Contact one of the big CRA's about getting credit info and reporting credit information and they will be happy to help you. They want accurate and as much information on the people in their computers as possible and to charge you at one end to put it in there and to charge at the other end for people to view it, leaves them a nice meat sandwich in the middle!
Good Luck.
There are companies that will allow you to report your tenants history, good or bad, to the credit reporting agencies. Finding those companies can be troubling. Try to find a local real estate group in your area and attend. It's a good way to generate ideas and also find companies that can help you do what you are looking to do. It will cost you money, but I pass the bill on to my tenants.
http://www.payrentbuildcredit.com/
You would have to report to the bureaus on a monthly basis just like a credit card. You will have to contact them directly to be set up for this.
Here are the numbers:
Experian: 888-397-3742
Trans Union: 800-916-8800
Equifax: 800-685-1111
I know landlords to do this who have people in a land contract. It makes refinancing the tenants a lot easier in a year.
Lori
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