When applying for large loans like mortgages, having a strong credit rating is essential. Despite being the majority of tenants’ largest monthly expense, rent is not frequently shown on their credit reports as proof that they have paid their debts over the duration of their tenure. That is precisely the reason why having a rent tracking tool, powered by RentTrack, that helps renters to obtain the credit they are due for on-time payments by adding rent in a way that most people do not currently.
Why is Rent Tracking Encouraged for Apartments in Texas?
All parties to a leasing agreement benefit from the arrangement. It’s an opportunity for tenants to raise their credit scores and increase their credit eligibility, which is crucial if they plan to one day own property. An excellent credit rating is still something to strive for a variety of different reasons even if they don’t.
It can only be a good thing for landlords to give tenants more motivation to pay their rent on time each month and to receive rewards for doing so.
Happy landlords and tenants are what you want to attain as a rental agent because it will make managing tenancies much simpler.
Rent can sometimes be seen negatively as “dead money,” but this doesn’t have to be the case if the rent is actually helping your tenants’ credit and future finances. When the time comes to buy a home, their prospects of getting a mortgage are increased since they build their credit history each month through consistent, regular payments.
An excellent or outstanding credit rating is one of the first things lenders look for to ensure that the borrower will be able to return their loan and any other obligations, such as auto loans or mortgage payments, on time each month. A high credit score increases the chances of getting approved for a loan. Aside from an easier loan application process, there are many benefits to building a good credit score.
By making it apparent what has been paid, when the following payment is due, and how many months of rent has been monitored, RentTrack makes that possible. The inclusion of prior leases enables tenants to compile a history of their rental payments from one lease to the next.
A tenant’s chances of persuading a lender that they are a reliable borrower increase if they can demonstrate that they have been making on-time, hassle-free rent payments for several months or even years.
First of all, by employing RentTrack, landlords and agencies acting on their behalf can increase their chances of luring and keeping credit-conscious tenants. For tenants, having a higher credit score means more financial prospects, and for landlords and renting agents, it means a lower risk of rental arrears. All parties benefit, as we indicated from the start it is a win-win situation. Find more about RentTrack here.
Looking for an apartment in Texas? Check out Ashford Communities, we partnered with RentTrack to help residents track their rent and help them achieve a better credit score while giving them the best experience, affordable housing, and spacious units. Swing by our property or contact us today to schedule an appointment.