Have you ever considered reporting your tenants’ monthly rent payments to the four major credit reporting agencies (CRAs)? If not, maybe now is the time to consider starting. Reporting rent payments to the credit bureaus can actually you help increase your rental debt recovery.
Benefits of reporting rent payments
First, reporting rent to the credit bureaus will prioritize your payment if your tenant perceives repercussions for non-payment. They’ll pay rent first above other financial obligations that are not being reporting.
Second, you offer them a sort of hammer-shaped carrot. They’ll want to make rent payments on time. Why? Because it will help them establish a positive payment history with the four major credit bureaus.
Finally, if all else fails and the tenant moves out or is evicted due to non-payment of rent, you can report their unpaid balance to the credit bureaus as a collection, saving yourself the costs of hiring a third-party collection agency or seeking a judgement in court.
Get started today
Most tenants don’t know that it’s possible for their landlords to report their rent payments. Some landlords don’t even realize that it’s an option, or believe it’s too difficult.
To start reporting to the credit bureaus, you’ll need credit bureau reporting software. The bureaus require credit data to be sent to them in a specific format called Metro 2. Credit bureau reporting software takes your tenants’ data and converts it to Metro 2 format.
The best way to get started is to work with a credit reporting service company like Datalinx. We provide credit reporting software that seamlessly integrates with your existing systems. We also work closely with you to ensure your data is sent accurately and on time.
Let us help you report rent
To learn more about the benefits of sharing your rental payment data with the credit bureaus contact us at (425) 780-4530 or email us at support@datalinxllc.com.
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