Credit Reporting and Rent payments

The top storylines in multifamily this week are rent reporting to credit bureaus, smoke-free apartments, net operating income, flexible rent payments, app tech that drives resident retention, ChatGPT uses and risks, construction soars, higher-income renters increasing and student housing rent growth.

Momentum is growing among public officials, as well as members of the apartment industry, that residents who pay their rents on time and in full should see a corresponding benefit to their credit histories. Less than 10% of renters currently see payment history reflected in their credit histories.

The top storylines in multifamily this week are automation and human interaction in leasing, credit reporting and rent payments, healthy company culture, rising insurance premiums, automating evictions and the financial benefits of easing pet restrictions.

There can be no downplaying the tremendous responsibility placed upon apartment operators. But today’s property managers have the opportunity to play an even more important role in their renters’ lives. They can be true partners in helping their residents improve their financial well-being.

With 2020 firmly behind us, apartment owners and operators have reasons to be optimistic about the road ahead. The pandemic has undeniably presented major economic challenges for many, but the average credit score in the U.S. increased by 1% in 2020, according to Experian.

SB 1157—a new California Senate Bill—requires operators of multifamily units in California that receive federal, state or local subsidies to offer each resident in a subsidized apartment home the option of having their rental payments reported to a major credit bureau.