TransUnion Report Finds 33% Increase in Number of Property Managers Reporting Rent Payments Since Last Year
CHICAGO, Oct. 17, 2024 (GLOBE NEWSWIRE) -- Nearly half (48%) of property managers who are aware of the practice, report rent payments to credit reporting agencies. The finding comes from new research from the Tenant and Employment business at TransUnion (NYSE:TRU) and represents a 33% increase from the number of property managers who said they reported such payments in 2023.
This is especially significant because 2023 also saw a 36% increase in the number of property managers reporting rent payments. Underscoring this rising trend, more than half (52%) of those who now report rent payments began doing so within the past two years.
The top reasons cited for reporting rent payments was to help residents build their credit scores (91%), followed by encouraging residents to pay on time (70%). The majority (85%) of property managers who report rent payments say it is easy to do.
These and other findings are detailed in TransUnion's Rent Payment Reporting eBook. The research included two surveys conducted in March 2024, with responses from more than 150 property management executives from mid- and large-sized firms, and 3,301 current renters.
"There is now clear, strong momentum for rent payment reporting," said Maitri Johnson, SVP and head of TransUnion's tenant and employment screening business. "It's exciting to be part of this movement because helping renters build their credit is a crucial step toward greater financial inclusion."
Gen Z sets new expectations
In line with prior TransUnion reports, Gen Z renters indicate their rent payments reported at more than double the rate of the general population—26% compared to 11%. This may be explained by Gen Z renters intentionally choosing to rent from property managers who report payments. It may also be the result of Gen Z renters self-reporting through third parties.
Most important, 84% of those who had their rent payments said their credit scores at least somewhat increased as a result. This held true across generations, except among Baby Boomers, which may likely be due to renters from that generation already having higher credit scores.
Rent Payment Reporting and Impact on Credit Score by Generation
| Total | Gen Z | Millennials | Gen X | Baby Boomers | |
| Percentage of Renters with Rent Payments Reported | 11% | 26% | 14% | 8% | 5% |
| Percentage of Renters Whose Credit Scores Increased | 84% | 89% | 82% | 90% | 63% |
The report also found 61% of renters are more likely to rent from someone who reports rent payments, with even higher representation among younger generations. In addition, 83% of all renters said they would be more likely to pay rent on time if their payments were reported.
"With so much mutual benefit, it seems inevitable that rent payment reporting will become the norm," said Johnson. "Moving toward that state, renters should feel empowered to ask property managers for rent payment reporting as part of their lease agreement. For their part, property managers should understand that the practice is easy to navigate and costs them nothing. What they are most likely to get in return are responsible tenants motivated to pay each month's rent on time."
For more information about the research, read TransUnion's Rent Payment Reporting eBook.
Property managers: Get started helping your tenants build credit through reporting rent payments with TransUnion's TruVision™ Resident Credit solution.
About the Surveys
Consumer Survey Methodology
This online survey of 2,008 adults was conducted March 12-18, 2024, by TransUnion in partnership with third-party research provider, Dynata. To ensure general population sample representativeness across United States resident demographics, the survey included quotas to balance responses to the census statistics on the dimensions of age and region. These research results are unweighted and statistically significant at a 95% confidence level within ±2.19 percentage points based on calculated error margin. Please note some chart percentages may not add up to 100% due to rounding or multiple answers being accepted.
Property Manager Survey Methodology
This online survey of 108 property managers was conducted March 19 - April 30, 2024, by TransUnion. Property Managers were surveyed via email through an online research platform. Survey questions were administered in English. The sample includes property managers who oversee a variety of housing types, number of units, and locations. These research results are unweighted and statistically significant at a 95% confidence level within ±9.43 percentage points based on calculated error margin. Please note some chart percentages may not add up to 100% due to rounding or multiple answers being accepted.
About TransUnion (NYSE:TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. http://www.transunion.com/business
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