Seasoned multifamily leaders know their properties have to stand out in a crowd. Attracting more residents and potential residents to their communities is, of course, the ultimate goal. But do you want just any potential resident? Or are there benefits to attracting a certain type? We’ve learned that it can be beneficial to attract and retain credit-conscious residents, for both the property and the resident. Why? Let’s break it down below.
Property Management Benefits
For a property, attracting and retaining credit-conscious residents has a lot of upside. For one, these residents are more likely to pay their rental payments on time. Having a higher awareness of their overall credit typically means they want to keep their credit in good standing. This leads to residents who are more budget-conscious, are consistent with making timely payments, and less likely to live outside their means. A credit-conscious resident, then, is also less likely to fall into eviction.
Credit and budget-aware residents are the tenants you want to keep for a long time! You can encourage longer rentals by offering amenities that are more attractive to this group. One such service could be adding a credit-building financial amenity, like RentPlus. A product like this is easy to implement and manage. Residents simply pay their rent on time, and the software integration will report those on-time rent and utility payments to the credit bureaus, helping boost a tenant’s overall credit score. Residents who are already credit-conscious will be excited about this perk. In fact, we have seen that tenants who take advantage of rent-reporting tools stay longer on average than those who don’t.
By encouraging an overall longer lease-term, multifamily properties can save money! Non-renewal costs can be anywhere from $2,500 to $5,000, so the longer a resident stays (and the more residents you have who stay longer-term) the better it is for your bottom line. Encourage a longer lease term by not only attracting credit-conscious residents, but also offer them perks like RentPlus to get them to stay longer.
Being a credit-conscious resident (and person in general) affords them many benefits outside of rent reporting. These rewards include lower security deposits and lower interest rates – keeping regular bills like car payments and credit cards lower. With overall lower monthly bills and a better income buffer, credit-conscious residents have more room to spend. This means they’re likely better able to afford the “perfect unit” they want to stay at long-term, and better able to make on-time payments.
Credit-conscious residents also benefit from socially responsible financial amenities, like RentPlus. By offering a rent reporting service, these residents get the added value of building credit simply by paying their rent on-time. This encourages their already positive credit behaviors and helps maintain their healthy credit habits.
Credit impacts consumers daily – and attracting residents who have their fingers closer to the pulse of their credit score are overall likely to benefit your property, as well as themselves.
Contact Rent Dynamics today at firstname.lastname@example.org to see how we can help you add RentPlus to your amenity package and better attract more long-term, credit-conscious residents.