Beginning in June 2021 we will be offering The Landlord Credit Bureau services to our landlord clients and residents.
Until now a credit score check was only a necessary step in the tenant approval process.
Now tenants can use their on-time rental payments to bolster their credit score and landlords can create credit consequences for those who do not make timely payments.
Paying rent has been historically discluded from a person's credit score. Landlord Credit Bureau CEO Zachary Killam states "There are many renters with poor credit scores who actually have a good record of paying their rent on time, and they have a harder time getting housing because landlords check credit scores. We should be giving credit to consumers for paying their rent on time."
The Landlord Credit Bureau is linked with Equifax, a main credit bureau in Canada. We will be reporting tenants' payments, or non-payments, to the Landlord Credit Bureau, which will then be reported to Equifax and influence credit scores.
New tenancy agreements, approved by our landlord clients, will include a clause that tenants must consent to, to have their rental payments reported to Equifax.
We feel this positive development we will soon be offering empowers property managers and landlords to motivate and reward responsible tenant behavior. Tenants are able to build a positive rental record of payments while using their largest monthly expense to build positive credit.