How to Report Tenants to the Credit Bureaus
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.
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