In 2021 it was reported that nearly 20 percent of renters in the US were behind on their payments. Unfortunately, unpaid rent causes problems for both landlords and renters, but what is the process for reporting tenant rent payments?
Rent payments are important and if they aren’t paid at the agreed time it can create difficult situations.
While this can cause problems, there are some ways that landlords can report missed payments. One of the things that landlords can to do help resolve any rent payment issues is to report rent payments to the credit bureau.
However, many landlords aren’t aware of this option or how to do it. If you would like to learn how to report tenants to the credit bureau, keep reading.
Where to Report Payments
One of the most important things about the rent payment reporting process is knowing where to report information. There are a few different services that you can use and we are going to cover them now.
If you are looking to report tenant rent payments there are two main ways to do this. One is to call the credit bureau directly and the other is to use rent reporting services.
While some landlords have never heard of a rent reporting service, they are a great way to report changes in rent. It is important that you use a rent reporting service that is recognized and authorized by credit bureaus to ensure that the information gets stored in the appropriate place.
It’s also important to follow the steps that the credit bureau layout so you complete the process of reporting rent payments properly.
Rent Reporting Services
There are multiple different rent reporting services out there, so you can choose from a range of options. However, some of them will offer more benefits than others.
Typically we would recommend that you always do your research when it comes to choosing a rent payment service.
One of the services that we would recommend is FrontLobby. This is one of the best services that you can use to make your rent reporting easy.
It offers affordable options and it’s easily accessible so all landlords can report their tenant payments without difficulty.
FrontLobby also has rent reporting, credit building, debt reporting, and tenant screening services. This allows landlords to have all of the resources that they need in one place.
Reporting Payments to the Credit Bureau
While rent reporting to the credit bureau can sound challenging, it’s actually a simple process. It’s just a matter of knowing how the process works.
The first thing that every landlord should know when making reports is that it is not madatory. By this we mean, you do not have to report rent payments to the credit bureau.
So you are free to continue without making tenant payment reports to the credit bureau. However, it is recommended that landlords consider making rent payment reports to the credit bureau so that they can collect any unpaid rent and help to cover their investment. Reporting rent payments also benefits Tenants credit score. It is a win-win situation for Landlords and Tenants.
If you don’t want to make regular reports via the credit bureau, you must report any unpaid rent payments if the issue ever arises. This is so you can keep yourself covered legally.
In terms of making your payment, the first step is to simply register an account with the credit bureau. This means that you can visit your local credit bureau either online or in person and use your personal details to register.
The next step is to report your tenant information in a timely and accurate manner. This is to ensure that no tenant information is missed and the Credit Bureau has all of your up-to-date reports.
How to Report Tenants to the Credit Bureau
When reporting information about your tenant you should know their Social Security number (It is not mandatory). Credit bureaus will be able to use the social security number to check your tenant’s identity.
This can prevent any fraud or identity theft from arising and if the tenant has previously had a poor rent payment history they can be aware of this.
In the case that the tenant starts refusing to pay rent then it’s important that you act quickly. Particularly if they are not indicating that they are intending to make future payments.
One of the best things you can do is to start gathering accurate information on when tenants have missed any payments. This is because you can have an accurate history as to whether or not payments were made.
You can choose to make a negative report to the credit bureau. This is whenever you notify the credit bureau about a missed payment.
However, if you do this you will need to give the tenant at least 30 days’ notice before you send off the negative report. The tenant must also be at least 30 days late with their rent payment.
It is important to ensure that the tenant is late with their rent payment as it can affect the tenant’s credit score.
The best case scenario is whenever both the landlord and the tenant can come to an agreement about rent payments. However, this is not always possible.
Get More Information on Reporting Tenant Rent Payments
When you begin learning how to report tenants to the credit bureau, it can seem a little challenging. However, once you know what to do, the whole process becomes much easier.
If you would like to get help from a tenant rent reporting service, then why not sign up for free today.