The landscape of credit reporting is evolving, and it's time for property managers to embrace a powerful tool that benefits both residents and their bottom line. With Assembly Bill No. 2747,  California is leading the way in empowering renters to build credit through their rent payments. 

The law, which went into effect January 1, 2025, will require property owners with 15 or more rental units to offer residents the option to have their on-time rent payments reported to credit bureaus. For all leases signed after April 1, 2025, property owners must start reporting rent payments for those who have opted in, while also giving all current residents the option to report rent by April 1. 

This groundbreaking legislation promotes financial inclusion and fairness, recognizing that rent payments are a significant financial responsibility that should be acknowledged in credit reports. By participating in rent reporting, renters gain the ability to build their credit history and can build a stronger financial foundation for the future. This law also benefits landlords by encouraging on-time rent payments and reducing delinquencies, leading to improved financial stability for both renters and property owners.

Benefits Beyond Credit Scores

Reporting rent to credit bureaus does more than just help residents build or improve their credit. By incentivizing on-time rent payments, properties can experience:

• Improved NOI: Reduced delinquencies translate to healthier financial performance.
• Enhanced Resident Relations: Offering rent reporting as a valuable amenity strengthens resident satisfaction and loyalty.
• Competitive Edge: Attract and retain residents with a benefit that directly impacts their financial well-being.

Rent Reporting by Homebody stands out from the competition

Rent Reporting is a win-win ancillary revenue amenity. Your residents can build their credit by simply paying rent on time, and you get a boost to your bottom line without distracting your onsite team. You don’t have to manage the service thanks to Entrata workflows and integrations and the fact that residents can sign up as part of the application process. At student properties, guarantors love Rent Reporting because it helps their applicant build credit without needing to open up a credit card account.

Benefits for Properties

• Stay competitive in your amenities
• Encourage on-time payments 
• Improved property NOI
• Put the Social in Environmental, Social, and Governance 

Rent that rewards residents

Residents want financial flexibility when it comes time for them to buy a house or car, or even take out a business loan. With Rent Reporting, you enable residents to build credit through something they are already doing, paying the rent. And it works. According to research by TransUnion 80% of consumers improved their credit scores when their on-time rent payments were reported to the major credit bureaus.

Embrace the power of Rent Reporting with Entrata and transform it into a mutually beneficial situation for your residents and your business.  Empower your residents to achieve their financial dreams, enhance your property's financial health, and solidify your position as a leader in the multifamily industry.

Benefits for residents

• Build credit while renting 
• Manage in the Homebody app
• Financial literacy resources
• Free budgeting tool

Request a demo today to learn more about how Rent Reporting will drive more on-time payments from residents while also helping them build credit.