As a property manager, it may seem counter intuitive to take steps to help your tenants own their own properties; however, making educational and credit-building resources available for residents can benefit both the property manager and the tenant. Methods of building tenant credit can be simple and effective, limiting effort and expense on the management side while building positive, memorable relationships with clientele.
Many times, credit is only reported when something has gone wrong—a payment is late or a lease is broken—but on time rent payments can also be reported to the Big Three credit-reporting agencies, Equifax, Experian, and TransUnion. Plenty of software tools are available online that tenants and managers alike can use to report rent payments monthly. Because many of these tools do require a fee to use, property managers can look into software that incorporates automatic reporting into its property management and payment processing systems, to give residents that added service and peace of mind. This extra incentive for a tenant to pay their rent on time can also decrease the risk of delinquency, eviction, bad credit, and bad feelings. Put simply, investing in tenants can yield worthwhile returns.
Many benefits arise from assembling a profile of resident resources created with the intent of boosting credit and property ownership. Helping your residents make their way towards home ownership ensures positive brand awareness and forms lasting relations with tenants long past their lease agreements. No one wants a combative or even competitive relationship between managers and residents. Investing in tenant potential creates satisfied tenants, good reviews, and future property owners that will remember your services and reach out for assistance when needing managers for their own residences.
Why property managers should help tenants:
Assisting tenants in building credit and pursuing property ownership requires a property manager to be innovative. Give your tenants resources: provide a market report of available properties, conduct a seminar about property ownership, have partnered realtor brochures available in the office. Simple and cheap strategies can be enough to show tenants that your door is open to answer questions and provide guidance. Ultimately credit-building falls on the shoulders of tenants, although providing educational content pieces for on-time rent could potentially lead to home-ownership and be enough to keep managers from needing to chase down a late payment mid-month.