California will now require landlords of multi-family housing to give tenants the option to opt into having their rent payments reported to the credit bureaus.
The only thing I would change is that the landlord is allowed to ONLY charge their exact cost. But otherwise yeah this is a good idea (having your rental payments show or affect your credit score).
Monthly cost or $10, whichever is less, is better. It means the landlord is incentivized to keep costs down. Even if it costs the landlord $50, they can only charge the tenant $10. If it costs them $5, they can only charge the tenant $5. It’s a ceiling on the cost.
I assume the landlord uses a service to share rent with the credit report agencies. The landlord can shop around for a cheaper service, or use their cousin who charges $50/tenant but gives the landlord a kickback.
If the landlord has a realistic way to control the price then that’s one thing but I would want to see how they control that price. Or if they even have any say in it. If the landlord has no say then the landlord should charge exactly their cost.
The only thing I would change is that the landlord is allowed to ONLY charge their exact cost. But otherwise yeah this is a good idea (having your rental payments show or affect your credit score).
Monthly cost or $10, whichever is less, is better. It means the landlord is incentivized to keep costs down. Even if it costs the landlord $50, they can only charge the tenant $10. If it costs them $5, they can only charge the tenant $5. It’s a ceiling on the cost.
Maybe I’m misunderstanding.
This is a cost to have your rent showing up on the credit report, correct?
How would the landlord have any control over what they charge?
I assume the landlord uses a service to share rent with the credit report agencies. The landlord can shop around for a cheaper service, or use their cousin who charges $50/tenant but gives the landlord a kickback.
I think assumptions in this case is a bad idea.
If the landlord has a realistic way to control the price then that’s one thing but I would want to see how they control that price. Or if they even have any say in it. If the landlord has no say then the landlord should charge exactly their cost.