Realizing the Rent Reporting Opportunity for Apartments

Now that more apartment dwellers choose to pay rent online, renters need and want a direct connection between on-time housing payments and a boost in their rating with credit bureaus. Surprisingly, just under 50% of renters are still unaware that paying rent on time can build credit, according to a recent survey from RealPage® — despite the finding that 87% of American renters think paying their rent on time should improve their credit score. With rent as the largest monthly expense amid rising costs for all necessities, today’s renters value the option to be rewarded for paying rent on time. However, according to the nonprofit research group Urban Institute, rental data appears in credit files for fewer than 5% of the roughly 80 million adults in rental housing. Transunion recently found that nearly half of the property managers who report rent started doing so in 2022. With numbers up among property managers reporting rent and renters more savvy about the value of rent reporting, why aren’t more apartment residents benefiting — and what will it take to resolve the disconnect? Breaking down barriers to reporting rent payments While rent reporting usage appears to be on the rise, confusion from both renters and properties may explain why demand is not being met for more than three-quarters of renters who experience challenges due to poor credit: Renters may assume they already have it — and don’t know they must request it Operators are unsure how to enable, promote or benefit from the service Understanding the scope of these win-win advantages can help identify how every community can seize the latent opportunity in rent reporting. Renters win with: Credit-building benefits for renters of every social and economic status with more financial opportunities Low-cost, automated rent reporting option available from the property that supports individual financial milestones and goals Historical “back...