In early March, Prince George County, MD signed new legislation requiring multifamily owners and operators with 15 or more units to provide tenants with the option of having their rental payments reported to 1 of the 3 major credit bureaus, from a third party service, the landlord, or otherwise.
Mirroring California Affordable Housing Requirements
The official Bill No. CB-006-2023 echoes California’s Senate Bill 1157 which is part of a greater effort to provide renters with limited income a greater opportunity to improve and build credit by providing on-time rental payments to major bureaus. The California law was put into place in July of 2021 and set to last through July of 2025 requiring assisted housing developments in particular with 15 or more units to give all new and existing renters the option to report rent payments to a consumer reporting agency, or third party at no greater cost to the resident than the cost of the report, with a cap at $10.
What this Means for Prince George Multifamily Operators
In order to stay compliant with the county requirements, Prince George leases signed after July 1st must offer rent reporting at the time of the lease agreement signing and at least once annually thereafter. For any outstanding leases, the same offer must be made by October 1st with at at least one offer annually thereafter. The rent reporting must explicitly include a written statement that only timely payments are to be reported. Similarly to the California Senate bill, If a resident elects to have rent reporting the landlord may require a fee to be paid via a 3rd party service or via the landlord if handling, but cannot exceed $10/month. Residents are legally allowed to opt out at any time with a written request.
While the initial ask may feel overwhelming to some multifamily operators and property managers, rent reporting is the latest in national efforts to help unlock greater financial equity for renters, and low-income earners especially. With higher credit scores, renters are much more eligible for better rates on car insurance, business loans, even job opportunities. On the property management side, rent reporting helps to support more fiscally responsible renters, reduce delinquencies, increase resident retention, and boost NOI, making it a win-win for residents and property managers alike.
How Maryland Prince George County Property Managers Can Stay Compliant
If you’re a Prince George multifamily operator or owner who meets the criteria for required rent reporting, we’d love to brief you on how to stay compliant with the upcoming legislation.
There are several rent reporting services currently in existence. As a third party rent reporting provider, Rent Dynamics’s RentPlus program assumes all the logistics by acting as the data furnisher, taking the liability off of you, and eliminating extra work. Rent Dynamics also gives the opportunity for conservice partners to combine utilities with rent tradelines as an even greater value to residents with an average of an additional ~50 point increase in comparison to rent reporting alone.
Unlike many other leading rent reporting providers, Rent Dynamics has no setup fees associated with rent reporting, and easily integrates with common PMS providers. Rent reporting with RentPlus also includes a full suite of financial services ranging from a debit card and banking app, free financial education courses online, budgeting tools, credit monitoring and ID protection, and even cash incentives for soon-to-be homeowners through the RentPlus home buying program.
Fannie Mae Properties Pay Nothing for First Year of Rent Reporting
As an extra bonus for properties with Fannie Mae loans, as part of the Positive Rent Payment Reporting Program, rental reporting is subsidized at no extra cost for owners and operators. All that is required to qualify is an existing Fannie Mae loan, no other active rental reporting services, and the rental payment reporting at the property must also be supported by RentPlus.
If you’re ready to get your Prince George multifamily properties up-to-date with CB-006-2023, we are ready to assist! Reach out to our team today to make it a seamless and easy transition.