I read in The Telegraph online recently [Rise of Generation Rent], soaring property prices have seen the number of people renting almost double – the overall number of homes lived in by owner-occupiers has fallen to 65.2 per cent in 2015.
The Rental Exchange is a way for tenants’ rent payments to be counted towards their credit report, in a similar way to mortgage payments for homeowners. This benefits private landlords and letting agents because tenants will now have more of an incentive to consistently pay their rent on time.
“71% of renters think Rental Exchange is a good idea compared to 85% of potential renters, thinking about buying in the near future or have been recently turned down for credit.” *
With so many people in the UK, now opting to rent instead of buying, this is the right time for private landlords and managing agents to sign-up to the initiative.
What’s in it for me!
The Rental Exchange will enable your tenants to enhance their credit score and help create an ‘online’ proof of identity. By sharing your tenants’ rental data, you can help people take control of their future by giving them access to affordable credit and other services; supporting financial inclusion.
As previously mentioned, your tenants will now have more of an incentive to consistently pay their rent on time. So this will enable you to have a more steady cash flow and receive payments on time, improving your collections process.
“Our latest research indicates that at least 60% of tenants would be more likely to pay their rent on time if their data was shared with a Credit Reference Agency.” *
This scheme is FREE to join.
There is no cost to participate in the Rental Exchange and the scheme has been developed with advice from regulators, including the Information Commissioners’ Office and fully complies with the Data Protection Act. So, if you agree this is a great idea, spread the word!
Landlords and agents with more than 100 properties can report rent payment performance directly into the Rental Exchange (for organisations with less than 100 properties, tenants can register and schedule their rent payments via Credit Ladder – www.creditladder.co.uk).
Rental Exchange Partner
For more information about how The Rental Exchange can benefit you and your tenants, visit our website: http://www.experian.co.uk/rental-exchange/
* Experian Private Tenants Survey, October 2015