CHICAGO, Oct. 17, 2024 (Globe Newswire) — Nearly half (48%) of property managers who are aware of this practice report rent payments to credit bureaus. The findings come from a new survey from TransUnion’s (NYSE:TRU) tenant and employment business, which compares to the number of property managers who said they reported such payments in 2023, compared to 33. % increase.
This is especially important as 2023 also saw a 36% increase in the number of property managers reporting rent payments. Supporting this upward trend, we found that more than half (52%) of those who currently report paying rent started paying rent within the past two years.
The top reason for reporting rent payments was to help residents improve their credit scores (91%), followed by to encourage residents to pay on time (70%). The majority (85%) of property managers who report paying rent say it’s easy.
These and other findings are detailed in TransUnion’s Rent Payment Report eBook. The survey includes two surveys conducted in March 2024 and received responses from more than 150 real estate managers at mid-sized and large companies and 3,301 current renters.
“We’re clearly seeing strong momentum in terms of rent payment reporting right now,” said Maitri Johnson, TransUnion’s senior vice president and head of tenant and employment review operations. “Helping renters build credit is an important step towards greater financial inclusion, so we are excited to be part of this movement.”
Generation Z has new expectations
Consistent with previous TransUnion reporting, Gen Z renters report paying more than twice as much rent as the general population (26% compared to 11%). This may be explained as Gen Z renters intentionally choosing to rent from property management companies that report their payments. It could also be the result of Gen Z renters self-reporting through a third party.
Most importantly, 84% of people who paid rent said their credit score increased at least somewhat as a result. This is true across generations, with the exception of baby boomers, which is likely because renters from that generation already have higher credit scores.
Generational Rent Payment Report and Credit Score Impact
Generation Z Total Millennials Generation
The report also found that 61% of renters were more likely to rent from someone who reported paying rent, and the proportion was even higher among younger people. Additionally, 83% of all renters said they would be more likely to pay their rent on time if their payments were reported.
“The mutual benefits are so great that it seems inevitable that rent payment reporting will become the norm,” Johnson said. “Toward that end, landlords should feel empowered to request rent payment reports from their property management company as part of their rental agreement. On the property manager’s side, this approach is easy to implement; They need to understand that it doesn’t cost them anything either. What they’re most likely to get in return is a responsible tenant who is willing to pay their monthly rent on time.”
For more information on this study, check out TransUnion’s Rent Payment Report e-book.
Property managers: Help build tenant credit by reporting rent payments using TransUnion’s TruVision™ Resident Credit solution.
About the survey
Consumer research methodology
The online survey of 2,008 adults was conducted by TransUnion in partnership with third-party survey provider Dynata from March 12-18, 2024. To ensure the representativeness of the general population sample across U.S. resident demographics, the survey included quotas to balance responses to census statistics on age and region dimensions. These findings are unweighted and statistically significant at the 95% confidence level within ±2.19 percentage points based on calculated error bars. Please note that some chart percentages may not add up to 100% due to rounding or multiple responses being accepted.
How to research real estate managers
The online survey was conducted by TransUnion from March 19 to April 30, 2024 among 108 property managers. Property managers were surveyed via email via an online survey platform. The survey questions were asked in English. This sample includes property managers who oversee a variety of housing types, units, and locations. These findings are unweighted and statistically significant at the 95% confidence level within ±9.43 percentage points based on calculated error bars. Please note that some chart percentages may not add up to 100% due to rounding or multiple responses being accepted.
About TransUnion (NYSE:TRU)
TransUnion is a global information and insights company with more than 13,000 employees with operations in more than 30 countries. We enable trust by ensuring that each individual is present in the market. We do this with each person’s Tru™ photo: a meticulously curated, practical view of the consumer. Through acquisitions and technology investments, we have developed innovative solutions that extend beyond our strong core foundation of trust into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can trade with confidence and achieve great results. We call it Information for Good®, and it brings economic opportunity, great experiences, and personal empowerment to millions of people around the world. http://www.transunion.com/business
Contact Dave Blumberg TransUnion Email david.blumberg@transunion.com Phone 312-972-6646
