Report Tenant Pay Habits
Tenant Screening and Reporting Tenant Pay Habits takes the Risk out of Renting.
Landlords & Property Managers can report Tenant Pay Habits to www.tenantverification.com a credit reporting agency which serves to minimize risk of fraud and reduce income loss.
When tenants are advised that pay habits are reported to a Credit Reporting Agency on the 3rd day of each month, chances are that the rent payment will be made on time as opposed to being days or weeks late. In today's residential rental world there are high risk and low risk tenants, high risk tenants impact a landlord's bottom line and often waste valuable landlord resources. i.e. time, money, hassles, stress etc.
It is important therefore to use every available tool to enhance the landlord/property management business. Reporting Tenant Pay Habits and advising the tenant of consequences for late payment or non payment is one such tool.
Notice to Tenant (sample)
High Risk Tenants
These tenants are often late with rent payments, do not make rent payments, cause damage to rental property etc. When landlords/property managers report the delinquent payments of these tenants it prevents them from using other landlords as a revolving line of credit.
Tenancy becomes difficult for them to obtain and sooner or later they will have to change the way they treat landlords/property managers. Where a High Risk Tenant is advised that a bad tenant history may affect future tenancy, there is more than a 50/50 chance that they will be persuaded to adhere to their responsibility of making rent payments on time. There are High Risk Tenants who fall into this category simply because there is no deterrent or consequence for their actions, where there is… many of them will change the way they do business with landlords/property managers, simply because there is a consequence when other landlords/property managers know the tenant history.
Low Risk Tenants
These tenants benefit when landlords/property managers report their pay habits… in many instances they are good tenants with bad credit histories owing to a variety of circumstances, but they always pay the rent.
A good tenant history will make it easier to obtain tenancy in the future and perhaps gives them a greater choice of where they are able to rent. Many landlords/property managers want tenants to be credit worthy as part of their criterion. Many good tenants aren't credit worthy, but now with a good tenant history behind them; landlords/property managers can take into consideration the fact that they are tenant worthy in that they have a history of making rent payments on time. A Certificate of Satisfactory Tenancy
(sample) can be issued by the landlord/property manager after a satisfactory lease period. This could enhance the credibility of the landlord/property manager as it would set them apart from the competition.
Reporting tenant pay habits is good for the Industry...if every landlord & property manager reported tenant pay habits, high risk tenants could no longer use them as a revolving line of credit. As it stands now there is little or no consequence in many cases for late rent payment or non rent payment, other than eviction. But eviction generally means that there is already a loss of income.
Financial Institutions, Credit Card Companies, Big Box Retailers...all report consumer pay habits. Why? It is a fraud prevention tool... consumers are not able to get credit with another credit grantor where they have poor pay habits or a terrible credit history. So consumers with bad pay habits cannot use these credit grantors as a revolving line of credit. Ever try to get a credit card or a bank loan with a bad credit history? It doesn't work. So to High Risk Tenants should not be able to get tenancy.
It only makes sense then that the Residential Rental Industry should network by reporting tenant pay habits and identifying High & Low Risk Tenants.
It makes even more sense when there is no cost to do that!
www.tenantverification.com networks in excess of 50,000 landlords and property managers.
The Notice to Tenant is a great deterrent ( sample)
The Certificate of Satisfactory Tenancy is a great incentive. ( sample)
Reporting tenant pay habits will reduce the risk of fraud and prevent income loss.
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