Credit history plays such an important role in our lives today. It shapes our ability to secure housing, buy a car, qualify for a credit card, and in some industries, it even impacts our ability to get a job. Rent is usually the largest bill we pay each month, yet it rarely factors into our credit score. Why? Because multifamily property management companies generally don’t report rent payments to credit bureaus.
Many property management platforms now have credit bureau reporting capabilities, allowing property management companies to help residents boost their credit scores and improve their financial stability and flexibility. Often this service is offered as a fee-based amenity, delivering value both for residents and property management companies.
ResMan’s Credit Builder is an affordable fee-based amenity service that offers residents the opportunity to have on-time rent payments reported to credit bureaus. From every angle, it’s a win for both property management companies and residents.
Credit Builder Benefits to Property Management Companies
For property management companies, Credit Builder offers a range of benefits.
Provides a Competitive Advantage: With fewer than 10 percent of properties offering credit reporting, ResMan Credit Builder is a differentiating amenity that allows properties to offer a valuable service to residents that is likely not available at other properties in your area.
Easy to Offer and Administer: Because Credit Builder is part of the ResMan platform, making it available to residents as easy as toggling a setting. Marketing and sign up for the service is integrated into the Resident Portal and leasing process. For those who sign up, fees are automatically included with monthly rent, and the platform automatically reports on-time rent payments to credit bureaus each month. It’s hard to go wrong with an automated, affordable service that attracts responsible residents without adding extra work for your staff.
Increases Revenue and NOI: Most of the revenue properties collect for the amenity flow right to the bottom line, allowing properties to increase revenue and grow NOI.
Helps Residents Understand and Improve Their Financial Situations: Beyond just reporting rent payments to credit bureaus, Credit Builder includes educational resources and tools to help residents understand and improve their overall financial health.
Meets State-Level Mandates: As more states consider legislation to require landlords to offer credit bureau reporting for rent payments, having Credit Builder in place will make it easy to comply with new legislation.
Credit Builder Benefits to Residents
The effects of poor credit impact consumers at every turn. There are no fast and easy ways to reestablish credit, but over time having on-time rent payments reported to credit bureaus can have a material impact. On average, Credit Builder subscribers see 20 to 40-point increases to their credit score over a 12-month period. And since Credit Builder can even report on up to 24 months of back payments, residents who have been at a property for several years stand to gain even more by signing up for the service.
Beyond credit bureau reporting, Credit Builder includes financial education as well as budgeting and spend-tracking tools to help residents better manage their finances. Residents who subscribe to the service also receive credit monitoring and identity theft protection, including a $1 million identity theft insurance policy. All these benefits are why 95 percent of Credit Builder subscribers say they’d recommend the service to others.
For property management companies that are focused on engaging, supporting and retaining their residents, Credit Builder is the type of amenity that can really make a difference in peoples’ lives. Learn how you can offer this amenity to your residents today.