5 reasons Why Landlords need Rent reporting
Rent reporting is fairly new in the Uk private tenant market and whilst this might be the case it is worth considering the benefits of rent reporting for private and social landlords.
Rent reporting is a method for tenants payment performance data to be reported on the rental exchange via Rentroster. This data is reflected on the tenants credit report in the same way a homeowners mortgage repayments will be reflected on their credit file. Rent reporting can be done by tenants directly through Rentroster or by landlords through Rentroster.
So why should you conser rent reporting?
1)This might be law soon
Rent reporting has many benefits and as one might imagine the Government will soon find a way to put this into law as it greatly benefits the tenants. Being ahead of the curve should be enough motivation for you. If it isn't, imagine how much cheaper it is now to report rent and how much more expensive it will become when it becomes law. The possible fines etc.
2) Reduce admin costs
Introducing rent reporting to your tenants can be done in 2 ways.
They continue to pay you rent as they have always done.
They pay their rent via Rentroster.
Paying their rent via Rentroster will reduce your admin cost as you no longer have to chase up rent payments or allocate incoming rent to tenants. This is because your tenants rent payments are now automatically sent to you and reconciled with a record of who has paid rent and who is outstanding.
3) Reduce arrears
By introducing Rentroster to your tenants you will reduce your rent arrears as tenants are more inclined to pay rent as they will not want a negative payment record on their credit file which may reduce their credit score.This will result in you receiving on time rent payments and a steady cash flow.
4) Be socially responsible and improve financial inclusion
By allowing your tenants to report their rental payment performance data this will help them build up their credit score as well as build their credit history. By increasing their credit score this will encourage financial inclusion as more tenants will be able to access credit products as well as have an electronic identity which can be referenced and checked.