CHICAGO, June 08, 2023 (GLOBE NEWSWIRE) -- More than one-third (36%) of property managers who are aware of the practice of reporting rent payments to credit reporting agencies do so. The finding comes from new research from the Tenant and Employment business at TransUnion (NYSE: TRU) and represents a 37% increase from the number of property managers who said they reported such payments in 2022.
Underscoring this rising trend, nearly half (48%) of those who now report rent payments began doing so in 2022—in part through solutions like TransUnion’s TruVision™ Resident Credit. The top reasons cited for reporting rent payments were to help residents build their credit scores (86%), followed by encouraging residents to pay on time (52%).
“It’s exciting to see this kind of movement among property managers toward rent payment reporting,” said Maitri Johnson, vice president of tenant and employment screening at TransUnion. “The findings also illustrate that the property manager-tenant relationship is more than transactional – most property managers who report rent payments are doing so to help their residents improve their financial futures. Clearly, awareness of this valuable credit report asset is growing, and we hope to see even broader adoption of rent reporting going forward.”
The research included two surveys conducted in March 2023, with responses from more than 150 property management executives from mid- and large-sized firms and 3,301 current renters. The complete findings are detailed in TransUnion’s report, “More Property Managers Embrace Rent Payment Reporting: Here's Why.”
Property managers who do not want to report payments themselves are forming partnerships with third-party data furnishers in order to participate in rent reporting.
“Our residents deserve opportunities to build their credit from on-time rent payments that give them access to more financial services such as favorable interest rates on auto loans,” said Matt DeGraw, President, Bridge Property Management. “Working with TransUnion through RentDynamics has made it efficient and affordable to participate in rent payment reporting, and we’re proud to offer this amenity to our residents.”
“No” becomes “not yet”
Interestingly, when asked why they don’t report rent payments, more than half (54%) of property managers selected “other” among the list of common reasons. Nearly one-third (32%) of that segment indicated they were in the process of setting up rent payment reporting or were already doing so through a third-party data furnisher.
When asked to identify which benefits would convince them to begin reporting rent payments, 85% were at least somewhat likely to report if it meant attracting renters who pay on time.
While 62% of property managers who actually report rent payments say that the process is somewhat easy or very easy, only 43% of property managers who do not report rent payments expect that to be the case. However, that is a significant increase from last year which found only 28% expect the process to be at least somewhat easy.
“I think we’re seeing a change in perspective among property managers in that they increasingly see rent payment reporting as an important and attainable value-add they can provide renters, a new amenity that can not only support good payment behavior but also be valuable in new renter acquisition,” said Johnson.
A generational shift led by Gen Z
Despite all generations being equally aware of the possibility to have rent payments reported to credit reporting agencies, Gen Z renters have their rent payments reported at nearly double the rate of the general population—21% compared to 11%. With Gen Z making up the larger portion of today’s renter profile, this is an important paradigm shift. In addition, 80% of those who had their rent payments said their credit scores increased as a result; however, there is a generational trend in that younger renters participate in and benefit more from rent payment reporting.
Rent Payment Reporting and Impact on Credit Score by Generation
|Total||Gen Z||Millennials||Gen X||Baby Boomers|
|Percentage of Renters with Rent Payments Reported||11%||21%||13%||9%||4%|
|Percentage of Renters Whose Credit Scores Increased||80%||86%||81%||80%||63%|
The report also found 58% of renters are more likely to rent from someone who reports rent payments, with even higher representation among younger generations. In addition, 82% of all renters said they would be more likely to pay rent on time if their payments were reported.
While the number of renters who said they have their rent payments reported to credit reporting agencies decreased slightly, the number of people who were unsure of whether their payments get reported increased proportionately—indicating a need for clearer communication between property managers and renters.
“Having rent payments reported is an attractive option for most renters, so property managers who participate should really leverage that benefit in their advertising and highlight it in their lease agreements,” said Johnson. “Property managers who are on the fence should understand that the practice is a win-win for both parties, as it attracts responsible renters and rewards them for on-time payments.”
For more information about the research, read “More Property Managers Embrace Rent Payment Reporting: Here's Why.”
Property managers: Get started helping your tenants build credit through reporting rent payments.
Are you a tenant interested in improving your credit score? Read TransUnion’s blog to find out more about how rent payment reporting can help. Tenants can also read TransUnion’s guide “How to Read Your Credit Report.”
About the Surveys
Property Manager Survey Methodology
This online survey of 151 property managers was conducted March 2-29, 2023, by TransUnion. Property Managers were surveyed via email through an online research platform. Survey questions were administered in English. The sample includes property managers who oversee a variety of housing types, number of units, and locations. These research results are unweighted and statistically significant at a 95% confidence level within ±7.98 percentage points based on calculated error margin. Please note some chart percentages may not add up to 100% due to rounding or multiple answers being accepted.
Consumer Survey Methodology
This online survey of 3,301 adults was conducted March 1-13, 2023, by TransUnion in partnership with third-party research provider, Dynata. Adults 18-77 years of age residing in the United States were surveyed using an online research panel method across a combination of desktop, mobile, and tablet devices. Survey questions were administered in English. All states are represented in the study survey responses. To ensure general population sample representativeness across United States resident demographics, the survey included quotas to balance responses to the census statistics on the dimensions of age, gender, household income, race, and region. Generations are defined as follows: Gen Z, born 1996-2004; Millennials, born 1981-1995; Gen X, born 1966-1980; and Baby Boomers, born 1945-1965. These research results are unweighted and statistically significant at a 95% confidence level within ±1.71 percentage points based on calculated error margin. Please note some chart percentages may not add up to 100% due to rounding or multiple answers being accepted.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 12,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. http://www.transunion.com/business