Topic: Happy New Year!!

It’s another new year in the rental business with new opportunity, innovation and progressive thinking. There is a strong buzz among student housing about rent payment reporting. The owners/operators/management companies (landlords) know that rent reporting is beneficial for the resident, however the question looms; what’s the BEST way to accomplish it? There are choices. All choices but one will require varying levels of landlord participation (i.e. cost), be it initial investment and/or ongoing resourcing. The initial investment can be sizeable. On-going resourcing can also add up quickly; largely depending on how complex the operation is.

Rent Credit is the only reporting service that has been designed specifically to serve the rental apartment industry. Rent Credit does not report for any other industry nor are we interested in collecting your rent payments, performing background checks or doing your books, etc. Rent Credit does one thing; we report monthly credit payments for the rental industry to credit bureau(s). We perform this task in a seamless and simple operation that actually compensates the landlord. In net dollars, the liquid gains will grow significantly and quickly.

From concept, the idea of Rent Credit was to develop a retail-marketable service that provides profound benefit for the end user while being a reliable and worthwhile source of secondary income for the landlord. Any landlord will ask, “What’s in it for me”? Rent Credit provides the landlord with the ability to offer monthly rent reporting in optional subscription format. Rent Credit compensates the landlord for their participation. Generously. The landlord is compensated on a per-line, per-month basis. We’ve developed proprietary software that makes the task on the landlords end as simple and user-friendly as possible. Our software drastically reduces on-going expenses for the landlord. The overall cost of resourcing is miniscule compared to the income.

Credit history reporting has historically had negativity tied to it. This is largely due to how it’s been utilized in the past. For renters, it was impossible to report positive information less than 10-years ago. The bureaus would not accept it. They only accepted delinquent payment history, typically through collection companies, hence the data was negative. Things have evolved and now on-time rental payments are reportable. Rent Credit is marketing the major positive impact and profound benefit that on-time rental payments can bring. Most pay their rent on-time so they’re already meeting their obligation. By offering Rent Credit in a positive way, we are able to sell what’s good about rent reporting. If the resident makes late payments, we’re obligated to report those as well; however common sense says that people who subscribe will likely pay their rent on time because doing so is worthwhile.

There is a very large segment of our population who are keenly aware of the benefit however the service has rarely if ever been offered to them. Why not? Payment reporting has never been easy, until now. Surveys were conducted to determine whether or not Rent Credit is a viable retail product. The questions are direct and clear as are the multiple-choice answers. The response ratios are astonishing. Data shows that people between the ages of 20-yrs and 40-yrs of age are most likely to subscribe. Respondents’ 40-yrs to 50-years of age dropped off a bit and respondents 50-yrs or older showed limited interest. Student housing residents responded especially well, particularly regarding price per month and most likely to subscribe if offered. Millennials are acutely mindful of their digital life. A big part is their identity which they watch closely, usually through a credit rating service. They know they have a credit score and they know it’s important, but they have never had the opportunity to build and maintain a positive financial footprint…………… until now. These students could easily graduate with a high credit score than their parents/guardians. Millennials want this service and they’re willing to pay for it.

Timing matters, particularly for the student housing sector. Focus should be on the upcoming leasing season and all of the potential residents. Rent Credit does however offer a product that is designed to retain existing leases. The residents with active leases can opt for a lookback. This means that for a reasonable one-time cost, we can go back to as many as 24-months and report that payment history. The lookback can go back from 6-months to 24-months. If a lease is 9-months old, that resident can build on rent they have already paid. Once the data is entered the credit score will immediately spike. Common sense says that if the resident chooses the lookback, they will be likely to remain a resident and subscribe to Rent Credit for a full term. There has never been a better optional incentive that truly offers benefit in a lasting way.

We expect that the more progressive-thinking landlords will be the first to offer such an astonishing advantage to their residents. The remainder will follow although they’ll be behind the curve until eventually, Rent Credit will become the norm.

Rent Credit is the idea whose time has come.

Please inquire @ getrentcredit.com