Imagine this: It’s the 7th of the month, and your rent collection report looks better than ever. Wouldn’t you like to see 92% collections by the end of the first week of the month? How about 98.9% by end-of-month? That’s not luck, it’s strategy.
Like many, United Properties of West Michigan saw a decline in rent collection rates during the COVID-19 pandemic, with collections dipping to as low as 90% in August 2020. By 2023, we were able to bring our average back up to 96%–97% collections, and we are now averaging 98%. One of the contributing factors for us maintaining a near-perfect (or as close as you can get in property management) collection rate is tenant credit reporting.
More property managers are discovering that credit reporting isn’t just a tenant perk – it’s a highly effective tool for improving payment reliability. In a recent survey conducted by RentRedi and BiggerPockets, they found that credit reporting led to a 13% increase in on-time rent. By connecting rent payments to credit outcomes, you can change tenant payment behaviors by encouraging accountability and rewarding consistent on-time payments.
How It Works
Here’s a simplified breakdown of how a rent credit reporting system typically functions:
- Automation through property management software: If the credit reporting platform has an API with your property management software, then the credit reporting system automatically tracks which tenants pay on time and which pay late. If there’s currently no API, you can hack this by automating a report to pull the payment data at the specified time each month. You can then send this report to the credit reporting platform you’re using.
- Monthly reporting to credit bureaus: Once received, the credit reporting platform will report the payments as satisfactory or delinquent to major credit bureaus like Equifax, Experian, or TransUnion. Which credit bureaus are reported to may depend on the credit reporting platform you use.
- Impact on credit scores: You will likely have the option to report only on-time payments or to report all payments (on-time and late). On-time payments help residents build or strengthen their credit, while missed payments may negatively impact their credit.
This system is designed to create accountability while offering tenants a meaningful incentive to pay on time.
A Win-Win for Tenants and Property Owners
While credit reporting is often introduced as a tenant benefit, its ripple effects strongly favor property owners and managers as well.
Benefits for Tenants:
- Builds credit history with each on-time payment.
- Creates a benefit for something they’re already doing – paying their rent!
- Provides a tangible reward for consistency and reliability.
Benefits for Owners and Managers:
- Strengthens payment compliance and predictability.
- Reduces the frequency of late or missed payments.
- Lowers the time and costs associated with collections and legal action.
- Supports better resident retention by offering meaningful, long-term value.
When tenants see real benefits tied to good payment behavior, they’re more likely to stay on track and stay longer.
Best Practices for Implementing Rent Reporting
If you’re considering adopting a credit reporting program in your own rental portfolio or property management business, here are a few best practices:
- Start with a clear communication plan.
Tenants should understand exactly what’s being reported, how it impacts their credit, and when it starts. Transparency prevents confusion and builds trust. - Choose between “positive-only” and “full-file” reporting.
Positive-only reporting records on-time payments but does not report delinquencies, while full-file includes both. - Choose whether tenants can opt out.
Many rent reporting platforms will allow the option for tenants to opt out of the program, at your discretion. When you interview potential reporting platforms, be sure to clarify if you would like to allow tenants the option to opt out of rent reporting or if you would like to enforce the rent reporting for all tenants. - Train your team.
Ensure staff understand the purpose and benefits of the program so they can confidently answer tenant questions and maintain consistency. - Monitor and evaluate.
Track how the system affects payment behavior over several months. Use that data to refine your approach and communicate success to property owners.
What Property Managers Should Know About the Legal Side of Rent Reporting
Before adding rent reporting to your portfolio, it’s important to understand the legal framework that governs how and when tenant payment data can be shared with credit bureaus. The rules are designed to protect tenant privacy while ensuring fair and accurate reporting.
Do You Need Tenant Permission?
In most cases, you can legally report tenant rent payments without obtaining explicit written consent, as long as tenants are given proper notice and the process complies with the Fair Credit Reporting Act (FCRA).
However, transparency is key. Industry best practice (and what we recommend) is to notify tenants in writing at least 60 days before beginning rent reporting. This ensures tenants understand:
- That rent payments (both on-time and late) may be reported to credit bureaus.
- Which credit bureaus will receive the information.
- How the reporting could positively or negatively affect their credit.
At United Properties, we include this disclosure as an addendum in the lease packet, but many property managers also include this disclosure as part of the primary lease agreement instead. This approach makes the policy clear from the start and helps avoid misunderstandings later.
Including Rent Reporting in the Lease
In Michigan, as in most states, there’s no specific statute prohibiting rent payment reporting. The key requirement is that reporting is truthful, accurate, and non-discriminatory. Including a clause in the lease outlining rent reporting practices not only provides legal clarity but also reinforces transparency with residents.
Handling Disputes and Errors
Just like lenders, property managers must comply with credit reporting accuracy requirements. Tenant disputes must be investigated to correct any inaccuracies. We utilize CredHub, which receives and investigates disputes on our behalf. This prevents increasing our team’s workload while ensuring compliance with FCRA guidelines.
Stay Consistent Across Properties
Finally, consistency matters. If you manage multiple properties or portfolios, the rent reporting policy should be applied uniformly to avoid claims of unequal treatment or discrimination.
Building a Stronger, More Accountable Rental Community
The beauty of credit reporting is that it creates mutual benefit. Tenants who pay on time get rewarded through improved credit scores, while property owners experience more predictable income and less operational stress.
It’s a modern, data-driven solution that replaces reactive collection processes with proactive accountability, and it works especially well when paired with other supportive practices, like resident reward programs.
In an industry where delayed payments can quickly disrupt profitability, credit reporting is one of the simplest and most effective tools for improving long-term performance.
Final Thoughts: The Future of Rent Collection
The rental industry continues to evolve, and so must the systems that support it. Credit reporting represents the next step in that evolution, and one that encourages financial responsibility while protecting owner interests.
At United Properties of West Michigan, we’ve seen firsthand how including credit reporting as part of our resident benefit package creates a healthier payment culture, improves transparency, and strengthens relationships between residents and owners.
Sergio joined United Properties in 2020. He is a graduate from Pickens Technical College as a Nurse Assistant and as a Small Animal Care Provider in 2010. In the past nine years, Sergio has had various jobs, all focused around customer service.
Eden joined United Properties in 2016. Eden graduated from Davenport University in 2015 with an Associate’s in Business Administration. She’s the Executive Assistant to the Owner of United Properties, with a focus on procedural documentation. She enjoys playing guitar, reading, and doing outdoor activities. Eden is trilingual and able to communicate in English, Spanish, and American Sign Language. 
David joined the United Properties team in 2019 as the Director of Client Relations and Business Development. In this capacity, he is responsible for leading all leasing, application underwriting, tenant relations, accounts receivable, process improvement, remote workers, and general office functionality (essentially anything outside of maintenance and service). David comes from a longstanding career at a Fortune 15 company primarily in a sales and customer service leadership role.
Matthew joined the United Properties in early 2020. He is a graduate of Lee University with a bachelor’s in Intercultural Studies and also a master’s in Discipleship and Christian Formation. Matthew serves as a project manager over the Rent Ready process. He has 20 years of construction experience and over 10 years of experience in leadership positions. He oversees a team of technicians and schedules outside vendors getting properties back to the United rent-ready standard so that they can be leased again.
Cristina joined United Properties as the Accounting and Billing Team Lead in October of 2020. She has experience as a technology professional, an English-Spanish translator, and has worked the past several years as the treasurer of her condominium.
Rick joined United Properties in 2020 as a Service Coordinator and then later transitioned to the Collections team, where his customer service shines. Rick has an extensive background in customer service and enjoys being able to resolve issues. He and his wife are raising their two kids and in his free time, Rick enjoys making his own homemade jerky.
Harriet joined United Properties as a Accounting & Billing Specialist in February of 2021. She has experience as a bookkeeper and a Property Manager for a Real Estate account. She was a working student during her college days. Harriet loves cleaning because she thinks it is therapeutic. She also loves watching series during her free time, and she’s a fur mom of one dog. Her inspiration to work every day is her family.
Diego has an extensive background in customer service and, most recently in Maintenance and
Paulina joined United in early 2021 as a Leasing Assistant. She has a background studying social work, with several years of experience in customer service. She speaks English and Spanish fluently and loves to learn. Paulina enjoys small road trips and cold, rainy weather. Her dog is her favorite thing in the world.
Jessica has a Bachelor’s Degree in Financial strategies and public accounting and is studying a masters in Blockchain and Fintech regulation. She has previous experience as a customer service representative. She speaks English and Spanish. She loves taking long walks with her three dogs, hiking and road tripping during the weekends.
Chris Good is new to the United Properties Team since June 2022 as a Business Development Manager. With years of experience in both the construction industry (Master Electrician) and the Real Estate industry (Broker), he will closely work with new and experienced investors to facilitate their real estate goals.
Melba Alvarez
Enrique Vergara (Henry)
Alyssa Conklin
Leo Lacson
Dhyana Aragon
Joksan Gomez
Soroya has been with United Properties since March 2025. Her problem-solving, time management, and communication skills help her shine when working collaboratively with tenants and prospects. She is currently pursuing a degree in Cyber Security at Davenport University. Thanks to her tech-savviness, she excels at navigating and troubleshooting common technology and software issues.
Marlon Joined United Properties in 2025 as a service coordinator. He arrived with solid experience in customer service, property management, and marketing. If you need assistance with either a new or a previous situation, he will be more than glad to help you. Depending on the season, he likes spending time outdoors, going hiking, or simply taking a stroll around town to see what’s new in the city.
Hector began his career in customer service in 2017, gaining valuable experience in client support and communication. In 2021, he transitioned into sales roles, where he developed a strong ability to drive results and build relationships. Since 2023, he has worked in maintenance, IT, and tech support, expanding his skills in troubleshooting, systems support, and hands-on problem-solving. His background combines over eight years of customer-facing roles with a growing expertise in technical support and operations.
Gar Allison joined United Properties as Director of Operations in August 2025. He brings a decade of experience, covering construction project management, supply chain, sales, marketing, and regulatory compliance. Before that, he spent five years as an Engines Sales Representative in Kansas City, MO, shortly after graduating from Davenport University in 2011 with a bachelor’s degree in business management.
Angie Serrano