Of the property managers aware of the practice, almost half (48%) report rent payments to credit agencies, says a new report from TransUnion’s Tenant and Employment group—a 33% jump from last year, and last year was a 36% jump from the year before. That means more than half (52%) of property managers who report rent payments began doing so in the past two years.
Almost all of the property managers surveyed say they report rent payments to help residents build their credit scores (91%), as well as to encourage residents to pay on time (70%). The majority (85%) said reporting rent payments is easy to do.
TransUnion reported these findings in their Rent Payment Reporting Guide. The research is based on two surveys conducted in March 2024, with responses from more than 150 property management executives from mid- and large-sized firms, as well as 3,301 current renters.
“There is now clear, strong momentum for rent payment reporting,” said Maitri Johnson, SVP and Head of TransUnion’s Tenant and Employment Screening Business. “It’s exciting to be part of this movement, because helping renters build their credit is a crucial step toward greater financial inclusion.”
Gen Z Payments Reported the Most
Gen Z renters say their rent payments are reported more than twice as often as the general population, 26% compared to 11%, a continued trend from previous surveys. Explanations range from these renters intentionally choosing to rent from property managers who report payments to Gen Z renters self-reporting through third parties.
The good news is that 84% of those who had their rent payments reported said their credit scores increased at least a little as a result. This held true across the generations except for Baby Boomers, but they may have already had higher credit scores.
TransUnion’s research also found that 61% of renters prefer to rent from property managers who report rent payments, with higher representations among younger generations. And 83% of all renters said they would be more likely to pay rent on time if their payments were reported.
“With so much mutual benefit, it seems inevitable that rent payment reporting will become the norm,” said Johnson. “Moving toward that state, renters should feel empowered to ask property managers for rent payment reporting as part of their lease agreement. For their part, property managers should understand that the practice is easy to navigate and costs them nothing. What they are most likely to get in return are responsible tenants motivated to pay each month’s rent on time.”
Click here for more on TranUnion’s report on property managers and renters.
