How Can Landlords Report Late Rent into Credit Reports?

Should I report late rent information about my tenants?As a landlord or property manager, tenant rental payments can function as an extra source of income. Unfortunately, not all tenants make their lease payments on time. You may wish to have those late payments appear on the renter’s credit report when this occurs. You have to take certain steps before it is possible to report late rent information to the credit bureau.

Credit Reporting: Report Late Rent

Each of the three major consumer credit bureaus — Experian, Equifax and TransUnion — maintains its own separate consumer credit report database. Reporting credit information to these credit bureaus is not free for you, the creditor. Before you’re able to report any information, you must first become a customer of the credit agency’s credit reporting services. You can not report late rent data to the bureau otherwise. If you’re not a member, you would have no way of including your tenant’s payment history in the credit bureaus databases.

Each credit agency operates independently, thus a landlord who is interested in reporting overdue rent payments would need to contact each agency directly and subscribe to each of their services. A landlord must meet specific requirements to be able to do this, including payment of subscriber fees. In addition, they need the required equipment and software necessary to electronically report to the agency in the proper format. Subscriber requirements will vary by agency.

Datalinx exists to facilitate these hurdles, making it possible for you to report to the credit bureaus with minimal costs.

Federal Law Compliance

Lease information is not the normal credit information reported to the agencies. It falls into a category called “alternative credit information,” which refers to invoices that a consumer pays such as utilities or rent that are not traditionally credit-based, such as charge card. Optional credit data isn’t widely reported to the credit bureaus. Federal law doesn’t require that you report late rent or other renter data to a credit bureau.

Federal law governs credit reporting. It is imperative that you report only accurate information and that you respond to consumer disputes concerning the info you’ve reported. If you violate a customer’s rights under the law, you could face fines or other
civil penalties.

Again, Datalinx exists to help you navigate through the red tape with minimal operational overhead.

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