Tenant Pay Habits
Landlords can report Tenant Pay Habits to the TVS database which
serves to minimize risk of income loss.
When landlords advise the tenant that pay habits are reported to a Credit Reporting Agency on the 3rd day
of each month, chances are that the rent payment will be made on time as opposed to being days or weeks
late.
In today's residential rental world there are high risk and low risk tenants, high risk
tenants impact a landlord's bottom line and often waste valuable landlord resources. i.e.
time, money, hassles, stress etc. It is important therefore to use every available tool to enhance
the landlord business. Reporting Tenant Pay Habits is one such tool.
High Risk Tenants Often are late with rent payments, do not make rent payments, cause
damage to rental property etc. When landlords report the delinquent payments of these tenants it prevents
them from using other landlords as a revolving line of credit. Tenancy becomes difficult for them to obtain
and sooner or later they will have to change the way they treat landlords. Where a High Risk Tenant is
advised that a bad tenant history may affect future tenancy, there is a 50/50 chance that they will be
persuaded to adhere to their responsibility of making rent payments on time. There are High Risk Tenants
who fall into this category simply because there is no consequence for their actions, where there is…
many of them will change their non-pay habits. They grow up so to speak
Low Risk Tenants Will these tenants benefit from landlords who report their pay
habits… in many instances they are good tenants with bad credit histories owing to a variety of
circumstances, but they always pay the rent. A good tenant history will make it easier to obtain tenancy
in the future and perhaps gives them a greater choice of where they are able to rent. Many landlords
want tenants to be credit worthy as part of their criterion. Many good tenants aren't credit worthy,
but now with a good tenant history behind them; landlords can take into consideration the fact that
they are tenant worthy in that they have a history of making rent payments on time.
TVS recommends that you report the pay habits of all past (previous 2 yrs) and current tenants.
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