Gen Z helps lead more than one in four property managers

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CHICAGO, April 21, 2022 (GLOBE NEWSWIRE) — A growing number of tenants are benefiting from having their rent payments reported to credit reporting agencies, and that number is likely to grow as the younger generation – Generation Z – are the most interested in this practice. New research from TransUnion (NYSE: TRU) on tenants and jobs found that more than one in four property managers (27%) who are aware of the practice now report rent payments to rental reporting agencies. credit, of which almost a third have done so since January 2020 .

This is a significant increase since TransUnion last conducted similar research in early 2019 and found that only 17% of property managers were reporting rent payments at that time. The research included two surveys conducted in February and March 2022, with responses from more than 350 multi-family executives and 2,039 adults who rent the house or apartment they currently live in. Full results are detailed in the TransUnion report quick guide, How Gen Z is making rent payment reporting an industry standard.

“We have seen progress in property managers’ adoption of rent reporting over the past two years; however, there is clearly still room for the number of companies reporting to grow,” said Maitri Johnson, vice president of tenant screening and employment at TransUnion. “With a strong push from Gen Z tenants, who make up a significant portion of the tenant base today, we will likely see reporting become an industry standard and, therefore, a critical mass of tenants who can raise their standard of living through better access to credit.

The survey also aimed to understand why property managers decide whether or not to report rent payments to credit reporting agencies, as well as their perceptions of the process.

Top 3 Reasons to Report The 3 main reasons not to report
1. Help residents build credit (80%) 1. The process takes too long (22%)
2. Encourage residents to pay on time (71%) 2. I don’t know what to do (21%)
3. Attract financially responsible residents (49%) 3. Too much work/I don’t see the benefit (20%)

While 72% of property managers who say they do pay rent say the process is fairly easy or very easy, only 28% of property managers who do not reporting rent payments expect this to be the case.

When asked to identify benefits that would convince them to start reporting rent payments, 70% of property managers said they were at least somewhat likely to report whether it meant attracting tenants who pay on time . Additionally, 69% were at least somewhat likely to say whether it reduced the risk of kicking and jumping.

On the other hand, when tenants were asked how reporting their rent payments to credit reporting agencies would influence their behavior, 77% said they would be more likely to pay on time.

Consistent with these findings, third-party data providers and industry associations are increasingly vocal in their support of rent reporting.

“We chose to start reporting monthly rent payments to TransUnion because we believed the people we serve needed an opportunity to be able to build their credit and financial future,” said Jim Rowley, Head of RentPlus. at Rent Dynamics. “TransUnion has been a great partner in this venture, with industry-leading data and analytics solutions and unparalleled knowledge of the multifamily industry.”

“Consumers should literally get credit for paying rent,” said Eric J. Ellman, senior vice president, public policy and legal affairs, Consumer Data Industry Association. He added: “The more information the credit reporting system includes to prove their creditworthiness, the more it can help consumers access fair and affordable credit.”

Noting this trend, Johnson added, “There is tremendous opportunity in this space, especially as the national conversation focuses on financial inclusion, a key strategic initiative for TransUnion. We need to expand access to financial goods and services to more consumers, especially those with little or no credit profile. Reporting rent payments is a win-win for these consumers and property managers because it attracts responsible tenants and rewards them for timely payments. »

Gen Z ahead of the curve

In its survey of tenants, TransUnion found that more than half know that rent payments can be reported and are at least somewhat interested in having their rent payments reported. These sentiments are more pronounced among Gen Z, as 60% know about and want their rent payments reported.

This interest is also put into action as 27% of Gen Z renters say their rent payments are reported. This is significant, given that only 15% of all tenants have their payments reported. A related finding: 59% of those who have rented for five years or less say they are interested in having their rent payments reported, compared to 47% of those who have rented for more than five years.

“Increasingly, younger tenants are looking for property managers who offer this service, which reinforces the competitive differentiation of property managers,” Johnson said. “It’s clear that Gen Z understands value and, as they gain influence in the market, will likely drive more property managers to report.”

Research also indicates that rent reporting has a positive impact, as more than 70% of those whose rent payments are reported to credit reporting agencies see an improvement in their credit rating. As a result, they plan to leverage their higher scores for material lifestyle improvements: 41% will apply for a personal loan; 38% will apply for a mortgage; and 28% will apply for a car loan.

“Ultimately, rent payment reports help more people access credit that can positively change their lives,” Johnson said. “Greater financial inclusion is good for the industry and good for consumers, and I’m glad to see it gain traction.”

For more information on research, read the Quick guide, “How Gen Z is making rent payment reporting an industry standard.”

Property Managers: Start helping your tenants build credit by reporting rent payments.

Are you a tenant interested in improving your credit score? Read TransUnion’s blog to learn more about how rent payment reports can help you. Renters can also read TransUnion’s guide “How to Read Your Credit Report.”

About polls

The online tenant survey took place in February 2022 and included responses from 2,039 tenants aged 18 and over who rent the house or apartment they currently live in. The survey of property managers took place in late February and early March 2022 and included responses from 353 multi-family executives.

About TransUnion (NYSE: TRU)

TransUnion is a global information and knowledge company that enables confidence in the modern economy. We do this by providing an actionable picture of each person so they can be reliably represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call it Information for Good.® A leading presence in more than 30 countries on five continents, TransUnion provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people.

http://www.transunion.com/business

Contact Dave Blumberg
Trans Union
E-mail [email protected]
Phone 312-972-6646


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