TransUnion Report: 37% Increase in Number of Property Managers Reporting Rent Payments in Past Year

More than one-third (36%) of property managers who are “aware of the practice of reporting rent payments to credit reporting agencies do so.”

The finding comes from new research from the Tenant and Employment business at TransUnion (NYSE: TRU) and “represents a 37% increase from the number of property managers who said they reported such payments in 2022.”

Underscoring this rising trend, nearly half (48%) of those who now “report rent payments began doing so in 2022—in part through solutions like TransUnion’s TruVision Resident Credit.”

The top reasons cited “for reporting rent payments were to help residents build their credit scores (86%), followed by encouraging residents to pay on time (52%).”

Having rent payments reported is “an attractive option for most renters, so property managers who participate should really leverage that benefit in their advertising and highlight it in their lease agreements.”

Maitri Johnson, vice president of tenant and employment screening at TransUnion, said:

“It’s exciting to see this kind of movement among property managers toward rent payment reporting. The findings also illustrate that the property manager-tenant relationship is more than transactional – most property managers who report rent payments are doing so to help their residents improve their financial futures. Clearly, awareness of this valuable credit report asset is growing, and we hope to see even broader adoption of rent reporting going forward.”

The research included two surveys “conducted in March 2023, with responses from more than 150 property management executives from mid- and large-sized firms and 3,301 current renters. The complete findings are detailed in TransUnion’s report, ‘More Property Managers Embrace Rent Payment Reporting: Here’s Why’.”

Property managers who “do not want to report payments themselves are forming partnerships with third-party data furnishers in order to participate in rent reporting.”

Matt DeGraw, President, Bridge Property Management, said:

“Our residents deserve opportunities to build their credit from on-time rent payments that give them access to more financial services such as favorable interest rates on auto loans. Working with TransUnion through RentDynamics has made it efficient and affordable to participate in rent payment reporting, and we’re proud to offer this amenity to our residents.”

Interestingly, when asked “why they don’t report rent payments, more than half (54%) of property managers selected ‘other’ among the list of common reasons.”

Nearly one-third (32%) of that segment indicated they “were in the process of setting up rent payment reporting or were already doing so through a third-party data furnisher.”

When asked to identify which benefits would convince them to begin reporting rent payments, 85% were “at least somewhat likely to report if it meant attracting renters who pay on time.”

While 62% of property managers who actually report rent payments say that the process is somewhat easy or very easy, “only 43% of property managers who do not report rent payments expect that to be the case.” However, that is “a significant increase from last year which found only 28% expect the process to be at least somewhat easy.”

Johnson remarked:

“I think we’re seeing a change in perspective among property managers in that they increasingly see rent payment reporting as an important and attainable value-add they can provide renters, a new amenity that can not only support good payment behavior but also be valuable in new renter acquisition.”

Despite all generations being equally aware of the possibility to have rent payments reported to credit reporting agencies, Gen Z renters “have their rent payments reported at nearly double the rate of the general population—21% compared to 11%.”

With Gen Z making up “the larger portion of today’s renter profile, this is an important paradigm shift.”

In addition, 80% of those “who had their rent payments said their credit scores increased as a result; however, there is a generational trend in that younger renters participate in and benefit more from rent payment reporting.”

The report also “found 58% of renters are more likely to rent from someone who reports rent payments, with even higher representation among younger generations.”

In addition, 82% of all renters “said they would be more likely to pay rent on time if their payments were reported.”

While the number of renters who “said they have their rent payments reported to credit reporting agencies decreased slightly, the number of people who were unsure of whether their payments get reported increased proportionately—indicating a need for clearer communication between property managers and renters.”

Johnson added:

“Having rent payments reported is an attractive option for most renters, so property managers who participate should really leverage that benefit in their advertising and highlight it in their lease agreements. Property managers who are on the fence should understand that the practice is a win-win for both parties, as it attracts responsible renters and rewards them for on-time payments.”

For more details on this update, check here.

Register Now
Sponsored Links by DQ Promote



Send this to a friend