WHAT THE HOUSING BILL OVERLOOKS
One practical tool that could help address these challenges is rent reporting. Rent reporting allows landlords to report rent payments, both on time and missed, to the Credit Bureaus. This process is similar to how lenders report credit card or loan payments. It may help promote timely rent payments and support financial accountability. • More predictable cash flow • Less time spent chasing payments • Fewer evictions • Lower collections costs • Clearer expectations with tenants When fewer tenants fall behind on rent, landlords may see: Although not part of federal housing policy yet, rent reporting is gaining traction. In California, AB 2747 requires some landlords to offer rent reporting as an option for tenants.
TENANTS MAY BENEFIT TOO
Tenants who pay rent on time may use rent reporting to build or improve their credit. In a pilot program by the Credit Builders Alliance, 79 percent of participants saw their credit score rise with an average increase of 23 points.
Better credit can help tenants:
• Qualify for lower-interest loans • Avoid large utility and phone deposits • Pass credit checks for jobs or housing • Move away from high-cost lending products In a system focused on fairness, tools that support both landlords and tenants deserve attention.
79 PERCENT OF PARTICIPANTS SAW THEIR CREDIT SCORE RISE WITH AN AVERAGE INCREASE OF 23 POINTS.
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