|April 17, 2020|
Our goal with our Tenant Rent Reporting service is to report both positive and negative rent payments to the credit bureaus. And with the announcement of this service to tenants, we believe this will create a situation where Landlords and tenants will be more motivated to engage in productive and transparent conversations about employment, income, rent payments and payment plans during this COVID-19 pandemic.
Without this, what are Landlords supposed to do at this time? We have property management clients that own a 12-unit apartment building and they have received letters from their tenants stating that, in solidarity, none of them will be paying their rent on May 1st, because of the COVID-19 pandemic. How are these Landlords supposed to pay the mortgage and expenses?
Plus, the government orders have only emboldened tenant activists to not pay rent, and have made tenants who could pay despite the pandemic 2nd guess whether or not they should if no one else does… it’s human nature. All of this is because the political responses to COVID-19 to date have been very one sided against Landlords.
Hopefully Landlords will get mortgage assistance and deferments they might need, like tenants, but until that day they should explore other options like our Property Management and Tenant Rent Reporting services. So with all of that said, I wanted to send you the specifics of our new Tenant Rent Reporting service:
|Specifics of Tenant Rent Reporting|
|Setup & DocumentsThe setup for our Tenant Rent Reporting service is made very easy by our team at BRE Investment, LLC. We only need the address of your property, the current rent roll, and any and all tenant files you have (specifically including their applications and their lease agreements). |
If you do not have the application or lease agreement, then we can report using just their name and address (using TransUnion). But with all of the documents requested, we can setup your property quickly based on the requirements of the national credit bureaus for residential tenants (reported to TransUnion, Equifax and/or Experian), as well as commercial tenants (reported to Dun & Bradstreet).
Setup Cost & Subscription
The cost for our Tenant Rent Reporting service is extremely affordable for Landlords. Setup is $100 per owner or entity (charged only once), and $5 per month per tenant (charged as a monthly subscription).
Example: You own 123 Main Street, which is a duplex with only 1 tenant in each unit. So the first month’s setup fee and monthly subscription total will be $110, and then the 2nd month (and on) would be $10 per month subscription.
The credit bureaus have specific requirements that we must comply with when we report to tenants’ credit files. We are in compliance with all of them internally, but there are a few things you should know before you get started so you are in compliance with us.
Management: BRE Investment, LLC must be the official Property Manager of your building (our standard management fee is $500 per month). Find out more about our Property Management service.
Rent Collection: As the Property Manager we are required to process all the rent payments through our rent collection methods, in order to ensure we are properly tracking and reporting rent payments. We can not obtain rental information from Landlords, because this would be indirect and unverifiable information for us, and for the credit bureaus.
Reporting: We must report all of the tenants at the property and we must report both the positive (rents paid on time) and negative (rents delinquent by 30, 60 or 90 days to the bureaus).LegalFor most Landlords, the concept of reporting rent payment to credit bureaus is interesting and new to them, and so they may be concerned about any possible legal issues that may arise from credit reporting, especially during issues like COVID-19.
To address this reasonable concern, our company will offer an indemnification for our landlord-clients with regard to our Tenant Rent Reporting service so they have the comfort of knowing we’re in compliance with the bureaus and following the legal requirements on our end.
For more information, contact: