Rent reporting has become a popular offering in the rental space due to its positive impact on both renters and property owners — incentivizing on-time rent payments by automatically reporting payments history to credit bureaus. While not required by law in most states, adoption rates are trending upward, and a majority of renters (67%) have claimed they would choose a property that offers rent reporting over a similar property that does not.
Property owners that choose to offer rent reporting have the option of offering positive-only rent reporting or full-file rent reporting. While the features and benefits of each may seem obvious at first, there are property and resident impacts that should be taken into consideration before an investment is made.
Find out everything you need to know about positive-only and full-file rent reporting and how to decide which option is best for your residents and your business.
What is Rent Reporting?
Rent reporting is an amenity offered to renters wherein the property owner or manager reports on-time or on-time, missed, and late payments to major credit bureaus, establishing a tradeline for renters. Residents who regularly pay their rent on time can get a credit score boost, and property owners can offer a benefit that attracts the most fiscally responsible renters.
There are two types of rent reporting: positive-only and full-file (positive and delinquent.) Both have different benefits for all parties, so it’s essential to understand the differences to find the right reporting method for your property.
Understanding Positive-Only Rent Reporting
With positive-only rent reporting, property owners will only report a resident’s on-time rent payments to credit bureaus, leaving out any months where payments are late. It gives renters a boost for each on-time payment without the risk of delinquent rent reporting.
While this saves property owners from the backlash of reporting late rent payments and still encourages renters to pay on time, the incentive to pay on time might be less than if full-file rent reporting was offered.
It also poses some unexpected challenges for renters. While they won’t get dinged for a late or delinquent payment, positive-only rent reporting leaves gaps in a renter’s payment history. These gaps make it more challenging for credit bureaus and lenders to assess the renter’s financial health.
As of January 1st 2025, certain rental properties in California are required by law to offer rent reporting to their tenants.
Understanding Full-File Rent Reporting
In full-file rent reporting programs, property managers report on renter’s full payment history, including both on-time and late payments. This provides a complete payment history to credit bureaus and encourages tenants to pay their rent on time every month.
However, because late or missed payments can negatively impact renters credit scores, adoption rates could decrease since renters may be less likely to opt into full-file rent reporting — even though an incomplete payment history can also negatively affect their credit score.
Key Differences Between Positive-Only and Full-File Rent Reporting
Positive-only as well as full-file rent reporting both offer a variety of benefits to property owners and renters. Both incentivize residents to pay their rent on time and both can positively impact a renter’s credit score provided they pay the rent on time every month. However, there are a few differences between the two, which are laid out in the chart below.
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What Rent Reporting Option is Best?
Deciding between positive-only or full-file rent reporting ultimately comes down to what makes the most sense for your business. Positive-only rent reporting may attract more tenants simply because the potential of negative impacts to their credit score is eliminated. Tenants who are worried about missing a payment maybe inclined to opt out of full-file rent reporting for fear of a credit hit.
Full-file rent reporting, however, is the best option for those who plan to make rent payments on time each month, as a clear history of on-time payments gives lenders confidence that the borrower will be able to continue timely payments on future loans. It increases accountability and minimizes delinquencies.
How Do I Find the Best Rent Reporting Services?
If you’re interested in offering rent reporting for residents, there are many companies that offer rent reporting services for property owners. Ideally, your rent reporting vendor will offer both positive-only and full-file rent reporting solutions. To provide maximum value to residents — and therefore minimize opt outs — make sure the rent reporting service sends reports to all three major credit bureaus (Experian, Equifax, and TransUnion).
To eliminate the administrative burden from you and your team, you’ll want to find rent reporting services with the following features:
- Resident Portal: Providing residents with an easy-to-use portal gives them the opportunity to access and download their reports and make any necessary changes to their enrollment in the program.
- PMS Integrations: A solution that seamlessly integrates with your current Property Management Systems will save your staff hours, increase visibility, and empower you to track impact.
- Dedicated Support Team: Ensure a positive experience for residents and staff by using a solution with a best-in-class support team. Not only will this give hours back to your staff, but it will contribute to resident sentiment and retention.
Get Started with Foxen
Foxen Rentistry is a leading rent reporting solution that checks all these boxes, allowing residents to build credit with rent payments and improve financial wellness while increasing timely payments for property owners. We offer both positive-only as well as full-file rent reporting programs that are built to fit your specific needs.
Learn more about how Foxen can help with your rent reporting needs at foxen.com/rentistry.
