E-Renter News

Experian®, the global information services company, recently announced its acquisition of RentBureau® a credit information company used mainly by the multifamily rental industry. It seems the resulting combination will give property managers and landlords a complete picture of renters’ payment histories.

RentBureau receives rental payment histories on some 7 million residents in the U.S. every 24 hours. The payments are reported automatically from software property managers use. The property managers in turn received verification of new tenant’s rent payment history.

Experian will now be offering this data to its screening partners, including E-Renter.com. This is great news for landlords, property managers and for tenants, too.—who will be able to build or rebuild rental histories with prompt rent payments. In the past, only evictions and collections were reported, and timely rent payments did not help renters’ credit scores. The new reports will help tenants qualify for new leases as they help landlords better screen tenants and choose only the most qualified.

The integration of the two companies will take place over the next few months.

Seems like everything, including banking, is done online now. Most landlords have experience with online bill pay and account reconciliation, but some prefer to deposit physical rent checks into their accounts. They’re willing to accept the downsides, including waiting for mailed checks or collecting rent checks from tenants. Then there is the time involved in filling out deposit slips and mailing checks or dropping them off at the bank. And on top of those hassles, many banks charge a fee for every item deposited.

Many successful landlords allow tenants to direct deposit their rent into the landlord’s account—and many require it. If you’re hesitant about giving tenants your bank account information, or feel like something bad could happen if you go to direct deposit, you probably don’t need to worry.

Is Direct Deposit Safe?
Direct deposit has been around for a long time. Millions of banking transactions are conducted electronically around the world every day. So it makes sense that if there were some scandal or huge problems with the direct deposit system, we all would have heard about it.

What Can My Tenants do with my Information?
Let’s face it—most tenants are not hackers with the knowledge to surpass the financial industry’s safety net and firewalls. So it’s safe to assume tenants will not hijack your bank account after you provide them the information they need to direct deposit their rent payment. If this causes worry, then set up an account to receive the rent payments, then sweep the cash into another account.

How Can I Keep Track of all the Payments?
Tenants can indicate their address or unit number, name, or account number on their payment. If they forget, it could be difficult to trace their payments if all your rents are the same amount. Some landlords avoid this problem by setting up rents at slightly different levels: Tenant A pays $449, Tenant B $450, Tenant C $451, etc.

If collecting and depositing rent checks is taking too much of your time, try direct deposit. It works for thousands of other landlords.

George is an efficient, professional landlord whose organizational skills are the envy of his peers. He seems to breeze through new rental property acquisitions, sales, and exchanges with very few problems. What’s George’s secret? Checklists.

George starts every day with a list of tasks. He doesn’t always cross each one off—but if something is missed, he simply carries it to the next day’s list. “More importantly, I keep my list of goals prominently displayed. It reminds me that this is a long-term business, so I don’t focus just on the day-to-day of running my rental business.”

Other checklists George uses regularly in his rental property business:

• Utilities turn on/turn off list:  a simple reminder to contact each utility provider whenever service needs to be added or suspended to a property.
• Unit inventory list: a handy list to have in addition to the move-in/move-out checklists. No more confusion over number of light fixtures or window blinds!
• Contractor job checklist:  an easy way to put in writing what is needed from a contractor and ensure that every aspect of the job is performed.
• New tenant checklist: including each document required to move in a new tenant: lease application, tenant screening authorization, lease, pet policy and policies.
• Tenant responsibilities checklist: this could include checking smoke detectors each month, and where to place garbage and recycling for pick up.
• Landlord responsibilities checklist: includes routine maintenance, furnace filter replacement and safety inspections.
• Pets checklist: includes pet insurance, vaccinations, and deposits.
• Local schools lists: provided as a convenience to tenants.
• Move-in/Move-out Checklist: very important list to detail the condition of the rental unit. Landlord and tenant must sign and initial each page.

If you find yourself losing track of everyday tasks and are tired of hearing from tenants who move in without utilities, perhaps a few checklists can help keep your rental property business better organized!

In a recent article, CNN Money offers advice to "reluctant" landlords--homeowners who cannot sell their houses after they've purchased a new one. For some folks, the decision to rent a house is made only in desperation--and in hopes of covering mortgage payments.

The article offers easy-to-follow steps to maximize the income possibilities of renting a home while minimizing the hassles. Step number 4: Screen Prospects! The author, Amanda Gengler, recommends readers have prospective tenants fill out an application which includes a Social Security Number for background screening--and points readers to www.E-Renter.com.

Read the full article here.