When a tenant defaults on rent payment, their landlord will send them a letter of default indicating several options for making the payment arrangements. Some overdue debts are innocent, having tenants only caught up in the daily hustle and bustle. This is why so many landlords prefer automatic payments. However, that is also a dilemma whether the tenant is already in arrears or if the default has just begun. If tenants decide to ignore the rent payments, the landlord may pursue them through the courts, which may force payment into the area or even cause the tenant to lose their home. For more details about tenant reports, click on this page.
It is easy to overlook the importance of rent payment reporting because it's often overshadowed by other considerations. After all, how much money can one tenant earn each month? Some of the more pressing financial concerns that people think about when they move into rental housing are the deposit requirements, deposits required for utilities, insurance, and other charges that may not be considered until you have been living in the property for several months. Often, these costs are much more than people realize and can significantly alter the amount of equity they have built-in their residence.
To avoid the possibility of landlords discriminating against prospective renters, there are measures available to help prospective tenants to ensure their credit report will not reflect any rent defaults. The Fair Credit Reporting Act gives consumers the right to dispute inaccurate or outdated rental payment information directly with the landlord. Although there are ways to get the landlords to correct information on a credit report, contacting the landlord immediately after a payment is missed can stop the problem before it gets out of hand. Read more about rent credit today.
Some property owners who offer online rent payments may encourage payment by check, but that can't be done if the check has bounced. In addition, the property owner may have a different payment processor, such as Money Gram, which does not accept checks as payment methods. This problem can be easily corrected by contacting the processor immediately.
Landlords who have many renters would see their credit scores fall lower if all rent payments were calculated using one credit score. Unfortunately, when landlords make this calculation, they also include late fees and penalties that go unused by the tenant. By removing these types of fees from the equation, the landlord can lower the overall score for that property. However, this adjustment will only be temporary, as landlords need to make adjustments for future renters as well.
Tenants have rights when it comes to paying rent. Tenant law protects them by providing for what are known as "equitable" causes of action. When tenants don't pay rent, some landlords or property owners can sue them. Many times the courts accept rent collection efforts as legitimate if they are brought by a truly distressed tenant, such as a family that was forced out of their home due to financial hardship. If you have a good relationship with your landlord, he may be willing to reach an agreement with you that is fair to you and good for your credit rating. Here is a post with a general information about this topic,check it out: https://en.wikipedia.org/wiki/Rental_management_software.