Apartment Management Magazine Senate Bill 1157 – Helping to Solve the Issue of Credit Inequity
Contribution from The Verification Company
(Editor’s Note: In the June issue of “Apartment Age Magazine” we ran an article called “California Passes Legislation to Help Renters Establish Credit for Paying Rent” which explained the requirements imposed by Senate Bill 1157 This article provides a solution for reporting rent payments to major credit bureaus.)
There are currently approximately 43 million rental housing units in the United States today, and it is estimated that less than 1% of rent payments made are reported on tenant credit reports. Renters from historically marginalized, impoverished, and distressed communities who can often be of disproportionate color, immigrants, or Native Americans are unable to build up strong credit histories and credit scores when their largest monthly payment, rent, is due. is never reported to the credit bureaus. This contributes to a new growing national crisis called “credit inequality”.
Credit inequity often and easily limits the achievement of the American dream of homeownership by putting it beyond the reach of responsible tenants who seek to secure their economic future through homeownership and provide for their families. housing security. The issue of credit inequity is at the root of new legislation, such as California Senate Bill 1157, which requires housing providers to offer optional credit reports in certain rental properties. This new California law, which came into effect on July 1, 2021, requires reporting to at least one of the credit bureaus. Senate Bill 1157 recognizes that in most tenant households, rent payments are the highest monthly payment. Paying that rent on time shows as much fiscal responsibility as an individual who consistently pays a mortgage on time. This new law is a first step in California to make credit equity accessible to thousands of Californians.
So how can property owners and managers responsibly approach this new legislation and help correct a civil and economic rights issue that has kept the American dream of home ownership out of reach for so many? The answer is The audit company. The auditing company provides rental housing providers with responsibility for payments and credit bureau reports for tenants in the state. But more importantly, renters will receive an almost immediate increase in their credit scores by reporting rent payments, which is their biggest monthly expense. Your tenants’ attention to fiscal responsibility can pay off.
The checking company credit scoring system was developed by an owner of a property management company who was previously also a mortgage banking professional who saw the need to create a credit scoring system for helping new homeowners who he said were struggling to qualify for mortgages although they had always been reliable tenants who paid their rent on time. After studying the expectations of credit bureaus and working to create an effective platform for collecting and reporting rental payment data, The Verification Company has been reporting rental payment data since 2019. The company has spent the past two years perfecting a system to collect, secure, and report rent payment data to each of the major credit bureaus.
The Verification Company also offers landlords and property managers an innovative solution to rent collection problems, as all tenants who are trying to establish a great credit history will always pay their rent on time when they know the payments are due. reported to the credit bureaus and that a -Payment history will help them achieve better credit scores and eventually become a homeowner. In other words, the solution to the age-old problem of collecting rent is to outsource the task of data collection and reporting to the credit bureaus with the help of The Verification Company.
The services provided by The Verification Company reward tenants who pay on time. For timely payments, tenants will be rewarded when property management companies use The Verification Company to report data to major credit bureaus, Trans Union and Equifax. Property management companies should utilize the services of The Verification Company in appropriate endorsements to rental and lease agreements indicating that a nominal royalty will be charged in accordance with California law. Reporting from credit bureaus through The Verification Company will allow all responsible tenants to reap the benefits of their fiduciary responsibility and increase their credit scores resulting from the on-time payment of their rent. Soon tenants will be able to get the “bridge” they need and be on the right track to establishing credit equity for all tenants.
Knowing that monthly rent payments are recorded, collected, and reported by The Verification Company to the credit bureaus will encourage your tenants to prioritize paying their rent on time. Be sure to check out any discounts that may be available for owners and property managers who list a high volume of tenants.
The audit company can offer you and your tenants a “win-win” solution that solves the age-old problem of a landlord’s desire to collect rents in a timely manner and a tenant’s desire to benefit from the benefits. advantages of paying rent on time. With The Verification Company, you can help your tenants bridge the gap between lackluster credit scores and strong, reliable credit reports that improve credit scores and perhaps, ultimately, mortgages. . Help solve the problem of economic injustice and credit inequity and contact The Verification Company today. You can help level the playing field by making sure that there is credit equity for everyone, especially for those who have historically been left out completely.
The Verification Company (TVC) is a contracted data provider that reports accurate rental payment data to two of the major credit bureaus, TransUnion and Equifax. Its system was developed to help landlords and property managers, to encourage accountability for on-time rent payments while benefiting tenants with the potential to dramatically increase their credit rating. For more information, contact The Verification Company at www.rentalverification.com or call them at (866) 612-1601.