Last fall, California signed Senate Bill (SB) 1157 into effect, giving residents in subsidized housing a whole new credit-building opportunity by having their rent payments reported to major credit bureaus. The bill is in effect starting July 1st 2021, and will have a huge positive impact by helping many of the over 45% of California renters to establish, build, and maintain their credit scores.
This bill is the first of its kind, and requires property managers of subsidized housing units to offer residents the option of having their rental payments reported to major credit bureaus. This bill is tailored to those residents who will most likely receive the greatest benefit from establishing or improving their credit scores; opening up a line of credit-building for residents living in subsidized housing and giving them the opportunity to enter or stay in the financial mainstream. This will not negatively impact residents’ credit scores when payments are missed. Instead, evidence shows that nearly 80% of those involved in the pilot program had their credit scores boosted by reporting rental payments. You can learn more about SB-1157 (how it was passed, and what this means for other states) in our recent conversation with Conservice and the Credit Builders Alliance.
As a multifamily property owner, executive or manager, what do you need to do to prepare for the July 1st changes?
Pick a Reporting Solution
Adding in another software or technology can be a challenge, so make sure you research and prioritize seamless integrations with the property management and accounting software you already have in place. Never rush into a software that has not proven its worth.
Rent Dynamics offers a unique and easy way to implement credit reporting in a tool called RentPlus. Using an advanced encryption technology to securely provide data to credit bureaus, RentPlus does all the work for you to report timely rent payments on your residents behalf. Your residents simply sign up, pay rent on time, and RentPlus takes care of the rest. There are no hidden transaction fees, no middle-man, and no third-party processors required.
Communicate to Residents
This is a great opportunity to reconnect with your existing residents! Let them know you now offer free credit-reporting for on-time rent payments, and walk them through the steps on how to sign-up. Providing a software that offers your residents more than just credit reporting will set you apart as a truly caring property manager. Giving them tools and protection is a sure way to keep residents leasing from you for longer.
Make sure you let them know this is optional, and highlight the benefits of rent reporting; like establishing and building their credit. Not only that, but by choosing the RentPlus solutions, all RentPlus subscribers get free Credit Monitoring too! The fastest growing crime in America is identity theft, with an identity being stolen every 3.5 seconds. RentPlus Credit Monitoring is just one more asset you can market to your residents. RentPlus includes a $1 million fraud protection policy to keep your residents’ identity safe and secure. It provides credit monitoring, real-time alerts, and fraud prevention, and can help with identity restoration and recovery services so your residents can rest easy knowing you have them covered.
RentPlus also offers financial budgeting tools to help your residents manage their money to achieve their financial goals. Help your residents automatically view, set, and track their spending against their savings goals. Communities using RentPlus also see a reduction in delinquent rental payments. Use text alerts and credit tips to drive financially responsible behaviors.
Market Your New Offering
Offering rent-reporting services is a great way to stand out from the competition, so make sure this offering is advertised widely! You can add it to your website, include it in your email campaigns to prospective customers, and add it to your message on hold script.
You can offer so much more than just rent reporting with Rent Dynamics. By partnering with Rent Dynamics CRM and RentPlus you have access to unique marketing tools like pre-made and automated email campaigns. With a simple click of a button, your current and future prospects can be dropped into customizable email campaigns; giving you more time to focus on your property’s needs while knowing your marketing is getting handled (and you are communicating all of your properties’ offerings, like rent reporting, effectively).