Category: Property Management
It can be uncomfortable and inconvenient for property managers to hassle tenants who do not pay their rent on time. On the other hand, tenants who spend years paying rent on time never receive an acknowledgement for their efforts. What if property managers could provide an incentive for receiving rent on time from tenants? RentReporters has an answer. RentReporters is a credit report system that provides tenant rent payment history, and can be used to help build tenant credit. These credit reports can help or hinder tenants who are looking to purchase a home. Property managers who use RentReporters can help ensure timely rent while offering a chance for their tenants to build their credit history by demonstrating their ability to pay rent on time. We spoke with Jason Greenman from RentReporters to learn more.
APM: This is the first time I’ve heard about a service like this. Would you mind going into more detail about RentReporters?
Jason: I’d be happy to. Maybe just so I have more context, tell me about All Property Management and what you guys do. You connect property owners looking for property managers? Is that how your business works?
Jason: This is a great opportunity to introduce RentReporters because we’re in the process of rolling out our service to a much broader set of landlords and property managers. I’ll tell you about that in a second here.
Our core business is rental payment reporting to the credit bureaus. Normally, rent payments do not show up on a credit report, but for most people, it is their largest monthly expense. Many of those folks, about 58-60 percent of them want to buy a house someday.
We obtain their tenant data or contact list for the tenants, and then reach out to the tenants to get them involved in service. That’s really all it takes. It’s a pretty straight‑forward process. Another service we offer, for a fee, is a history of payments. The whole point is to have long‑term tenants, get credit for paying their rent on time, and have that show up in the credit report down the road if they want to apply for a mortgage at some point or any other kind of credit that’s going to help them out.
There are two main benefits from a landlord and a property manager perspective. One is that the landlord or property manager can offer this service to their tenants and to prospective tenants.
Landlords and property managers who use our service can send a message that they care about their tenants and want to help you build their credit rating. Landlords and property managers can help build credit profiles by being able to report this data. They can use this at no cost and market this as an amenity for their tenants and for prospective tenants.
Landlords and property managers also send a signal to tenants saying, “I’m serious about collecting rent on time and I’m going to report your positive rental payment history to the credit bureaus, but if it is late we are going to report that as well.” There is a benefit in letting tenants know that their payments are going to be reported to credit bureaus because they are more likely to pay on time, but also have an opportunity in improving their credit score by paying on time.
APM: What made you develop this product or what’s the background of this story?
Jason: Well, I became the CEO of the company back in September. The founder of the company has been working on the concept for years. He has a really strong background in credit reporting and consumer credit reporting. However, the development in technology over the past few years, widespread consumer Internet and the comfort of consumers with reporting data online really allows this concept to come into place.
APM: Are there other products like this out there? Or is this something new?
Jason: We are pretty unique. What’s unique about us is that we work with both the landlord and the tenant. We will be reporting to all the three big credit bureaus once we get those relationships finalized. I’ll give you an example. There’s a company called “Rent Bureau” that is a division of Experian. However, they only work with the largest property managers and property owners in the country. They do systems and technical integration work with the property management software of those companies to make their solution work. That’s the reason why Experian is working with us, because they realize they only addresses 2-4 percent of the market, in other words less than ten million renters out of a population of 108 million. We think we’re pretty unique.
APM: I can see how both tenants and property managers can benefit from this. What kind of feedback have you received from customers who’ve used this?
Jason: The feedback from tenants is uniformly positive. People realize that it takes a few months for data to show up on the credit reports. It certainly takes a few years of history for it to really impact the credit profile itself. If you reached out to our customers today, probably every last one of them would say, “Yeah, I’m excited about the potential!”
We’re still in the early days of this. We’re in the process of assembling our customer testimonials. For many customers it’s free. You can imagine they’re pretty excited about the potential.
APM: Is there anything else you’d like customers to know?
Jason We’re looking for landlords or property managers to work with us to build out our system. It’s free and requires a limited amount of effort on their part to get started. We believe we are in a unique situation because we have a lot to offer both property managers and tenants.
To Sum It Up!
RentReporters offers a chance for renters to build their credit history through their timely rent payments. This in turn benefits property managers who can ensure that rent is paid on time, but can also build relationships with tenants by providing this service.
Like this article? Check out other similar articles with information on technology resources on our Property Management Tech Tools Reviews Page!
Well, it looks like the Phoenix real estate market is cooling down after over two years of increasing home prices, according to the S&P/Case-Shiller price index. Unlike other areas of the country that are reporting tight housing inventories, such as Austin, Houston, and Denver, there were 29 percent more houses on the Phoenix market in January than a year earlier. Housing supply is at about 5.9 months. This past January saw 17 percent fewer homes sold compared to last January.
While some seem to be hoping that the real estate slowdown is due to bad weather across the country, that argument doesn’t work very well for the Phoenix real estate market. Blame is being spread amongst several culprits including
- Younger people aren’t prioritizing buying homes because of other debts and incomes that just aren’t increasing.
- Thanks to the last housing bust, many potential buyers are exercising caution.
- There are fewer foreclosed homes available.
- It’s still more difficult for first time home-buyers to qualify for a home loan.
- The rental-housing boom has resulted in more single-family homes available for rent, which is attractive to renters who are not looking to deal with the burdens of home ownership.
Experts are expressing concern that the situation in Phoenix could be foreshadowing similar coolings in other similar markets, like parts of California, Nevada, and Florida. Those markets are much like Phoenix in that they experienced high foreclosure rates and significant price drops, followed by strong rebounds.
Interestingly, the market for luxury homes in Phoenix is doing quite well.
And how is the rental market in Phoenix doing?
Indications are that there is more of a demand for rentals than homes for sale. Real estate investors looking at Phoenix have been losing interest because better deals are available elsewhere, so if you’re already a rental owner in Phoenix because you got a good deal when prices were low, you’re probably in decent shape.
And if you want to read more on the rental market and the influx of institutional investors:
- For an interesting read on how we’re becoming a nation of renters, check out this blog post from Dr. Housing Bubble. Whether you agree with the tone or not (down on big bank investor buyers), the numbers are interesting. For example, “for the first time in history, we had a six year stretch where we added more renter households than that of actual homeowners.”
- Housing Wire just reported on whether investor home sales are “masking a sick market.“Experts are concerned that:
- The influx of institutional investors in to the rental market artificially and temporarily suppressed inventory;
- Optimism in the housing recovery and home values are unsupported by market fundamentals; and
- US housing is more unaffordable now than ever: compared with 1999, real median household income is 9% lower and average home prices are 68.4% higher.
I’m curious to hear from Phoenix property managers about the rental market. It’s been difficult to come by reliable rental data-what are your average vacancy and rental rates Phoenix? If you are curious, check out our Rental Property Investment Score to learn more. You were the number two city for big bank rental investors- how has this impacted real-people rental property owners?
Please comment. Seriously.
For many, HOA’s are a “seen but not heard” element of home ownership. Things work, dues are reasonable and neighbors get along with one another. A good HOA Management Company handles all the critical aspects of the community, and the Board acts responsibly.
However, things can go awry. And when they do, the lack of a good HOA manager can mean the difference between minor frustrations and full-blown disaster. Sometimes, even the best management agencies will have difficulty satisfying all Board members and homeowners. Here are the top complaints we hear about management company performance:
- Failure to respond to inquiries in a timely manner. This is the single biggest complaint about ineffective HOA managers. Companies that submit contact reports as part of their contractual responsibilities tend to perform better since there is a verifiable record of all contacts made and responses given.
- Unreasonable delays in resolving homeowner problems. These types of issues generally find their way to Board Members and are a major irritant. Keeping a written record that includes their ultimate resolution is a must-have from an HOA services firm.
- Inconsiderate or disrespectful tone when communicating with homeowners. Given the extensive people contact and the unreasonableness of some homeowners, it’s important that the manager be fair, firm and unbiased to avoid escalation of issues. Diplomacy and consistent communication is a must.
- Delays in fixing maintenance issues. Maintenance issues, large or small, reflect on the entire community.
- Poor vendor selection. Using low-quality or unscrupulous vendors is the quickest way to lose confidence in the Board and the associated management company.
When checking references for a new HOA management company make sure you ask about the prospective company’s performance in the areas mentioned above. The CAI (Community Associations Institute) has a standard Code of Ethics that can be useful guide in vetting candidates as well.
Proper vetting of several competent management companies can help to avoid many of the pitfalls mentioned above. Make sure you take the time to properly screen and challenge your prospective service provider to avoid the painful process of replacing an unsatisfactory manager.