How to Report Tenants to the Credit Bureaus

Landlords are often destined to deal with bad tenants but that is one fate which you do not have to accept. There are many ways to deal with bad tenants, right from having clauses in the agreement to legal remedies. However, when tenants do not pay up or pay on time, the situation can get quite difficult for any landlord. If a tenant leaves without paying or is evicted and doesn’t pay up then again a landlord has to face several challenges.

One of the best ways to tackle bad tenants or to deal with non-payments of rent is to report the tenant to the credit bureaus. How to report tenants to the credit bureaus has a very simple answer. Here is the guide.

Have a Rental Agreement in Place

First, you would need a rental agreement, the details of the tenant including his or her social security number and identity details and you would need all documentations that record the tenant’s paid and unpaid rents. The documentation must also include all formal written exchanges that a landlord has had requesting the tenant to pay up. Also, a landlord must be a member of one or all the credit bureaus in the country to be able to report such matters. In a nutshell, begin with becoming a member of the credit bureaus, have all documents well sorted and provide all details of the tenant along with the documented proof of non-payment to report tenants to the credit bureaus.

Provide a Fair Notice

When you are not paid or the tenant delays payments, you must write to the tenant giving him or her a fair notice. The notice period can be thirty days or sixty days. Once the tenant fails to respond or fails to make the payment, you must send a case file with all these details to the credit bureaus. What the bureaus would do is make the tenant ineligible for loans unless he or she pays the money and rectifies the credit history.

Failure to Pay

Apart from reporting bad tenants when they fail to pay, you must mention this in the agreement. It is better to tell all prospective tenants that as a landlord, you would report all tenants to credit bureaus, whether they pay on time or do not pay on time and do not end up paying at all. This will encourage good tenants because they know the report would reflect nicely on their credit history. This will also deter bad tenants because they may already have a preconceived notion or mindset to toggle with the rent payments over time.
Posted on Mar 17, 2014


Most Important Landlord Tenant Laws in Texas

When it comes to having a tenant for the first time, it can be pretty daunting because you are going to be the corresponding landlord and a new relationship will emerge, which will need time to grow... More

The Landlord Tenant Laws in California

The landlord and tenant laws in California are literally the same as they are in any other state. These laws, rules and regulations are put into practice because they uphold an order, a discipline,... More

Understanding the Landlord Tenant Laws in Illinois

People are aware that there are different rulings in each state with reference to the landlord/tenant laws. The state of Illinois also has a set of laws. These rules and regulations are basically... More

The Landlord Tenant Act: What Landlords Need to Know

All landlords know that before they can formally become a landlord there are a lot of things they need to understand. Landlords and tenants cannot act as such without any legal bodies involved. That... More

Essential Tenancy Agreements that a Landlord Should Have

When entering into an agreement with a potential tenant, a landlord needs to fully understand the contract that binds them into the specific relationship of being a landlord and a tenant. Now that the... More

Landlord Rights

If you’re currently considering the option of offering one of your properties for rental purposes, you should first educate yourself about the landlord tenant relationship. For the first timers, it’s... More

Holdover Tenancy: What is a Holdover Tenant?

Landlords have many things to think of; they have to deal with legal issues, privacy issues, and so much more. Above all, they sometimes need to deal with a problem tenant. The interesting thing is... More

What is a Tenant Estoppel Certificate?

Most landlords may have some idea what an Estoppel Certificate is. However, many aspiring landlords are still unaware of what this certificate is all about. Basically, a tenant Estoppel Certificate is... More

How to Issue a Tenant Warning Notice

Landlords have a lot of administrative work to do when they have tenants. It seems easy to let people come and live in your home, have them pay the monthly rent and carry out your daily activities.... More

Tenancy Sufferance and Tenancy Lease Agreements Myths and Facts

There are a whole bunch of myths about lease agreements that most people believe that are simply not true: You can't rent a property without lease agreement – Actually there are laws in every state... More