Ever wished that there was an extra incentive for your tenants to pay rent on time?
YapStone recently announced that its online and mobile payments solution, RentPayment, a platform that is Level One PCI Compliant, is integrated with TransUnion’s Resident Credit, helping renters build credit history.
While renting has always played a small role in building of a solid credit score, it doesn’t play nearly as large a role as a good-standing mortgage.
Because landlords typically don’t report on-time payments to credit bureaus, the task of getting the check handed in on the first of every month goes mostly unnoticed.
The influx of online rent payment portals has made it easier to track and report timely payments, something that is good for both property managers and residents. Through RentPayment’s integration with ResidentCredit, data will be submitted each month to TransUnion for residents who decide to opt in to the service.
This solution comes about a year after a TransUnion analysis found that reporting rental information to a credit bureau could have a positive effect for a lot of consumers’ credit scores. As many more Americans opt to rent and fewer are getting credit cards, this service allows them to build up one of the most important financial figures for the future.
A screencap from RentPayment’s website.
The analysis found that nearly 80 percent of subprime customers with a Vantage Score lower than 641 on a scale from 501 to 990 saw an increase in their score just one month into their apartment lease. About 41 percent saw an increase of 10 points or more after one month.
Because of this report, TransUnion created ResidentCredit to encourage property managers and landlords to track the payment performance of residents. TransUnion charges no fees for the rental payment reporting.
“The benefits of the TransUnion ResidentCredit program also extend to our client partners in property management,” said Michael Denbeau, YapStone vice president and general manager of RentPayment.
“By giving renters a powerful incentive to make their rent payments on time, property managers may benefit from fewer late payments and improved cash flow. In addition, by offering this valuable service to renters, our property management clients will have a compelling differentiator from their multifamily competition.”
The data submitted each month through TransUnion ResidentCredit will appear on the resident’s consumer files with all other debt and financial information such as credit cards, auto loans and student loans.
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