by Alex Buchanan, Alyssa Schroeder
Consumers build their credit by paying off items such as vehicles, mortgages, credit cards, and other monthly bills. It only makes sense that paying rent would factor into that equation as well.
Unfortunately, that had seldom been the case in the apartment world until recent years.
Conventional wisdom would suggest that someone’s largest monthly expense would help them to build credit, particularly for those who are responsible and pay on time. Instead, renters often fall into the unenviable cycle of being unable to qualify for homeownership when they begin renting. They then remain unable to bolster their credit throughout their lease.
The paradigm is shifting, however, as many multifamily properties are beginning to offer rent reporting as something of a financial amenity. Recent legislature in California now requires most rental housing operators to do so. On a nationwide scale, operators should be encouraged to offer rent reporting, because it can benefit them, as well—particularly if they properly structure their programs for optimal success.
Read Alex Buchanan’s and Alyssa Schroeder’s article in the Multifamily Executive.