CLICK HERE TO VIEW/PRINT "72 HOUR WARNING NOTICE" TO REPORT YOUR RESIDENT(s)
CLICK HERE TO LEARN HOW TO REPORT NEGATIVE ACTIONS OF CURRENT RESIDENTS
CLICK HERE TO VIEW/PRINT THE "REPORT YOUR GOOD RESIDENT" FORM
CLICK HERE TO REPORT BAD DEBTS OF FORMER TENANTS TO ALL 3 CREDIT BUREAUS
Do you have a resident that is slow to pay or slow to
correct a violation? We all do from time to time. As you may know, it only takes
one or two slow-responding residents to cause financial stress. But, NOW there
is a tool and free service available to rental owners that WILL motivate many
residents to respond immediately.
You must first understand that you need to hold
your residents accountable, so that there will be consequences to their rental
performance while living in your property. One very effective way, which I call
the "Report Your Resident" strategy, is to notify new residents at the beginning
of the relationship, and remind them throughout the term that they will be
accountable for their rental performance and both their good and bad performance
will be made available to future landlords and creditors.
Reporting your resident's performance can have positive
benefits that help the resident establish or keep a good credit report and
resident rating. Mention to all your residents that you do a review of each
resident's performance every six months and will provide a GOOD performance
report for residents who pay on time and follow all terms of the agreement. Let
residents know that you keep a copy of the report in their file, for all who
inquire, and you will also print a copy of good reports and give to residents,
so that they can have for their records and use with future landlords or
creditors.
The flip side, of course, is that a poor performance
report can hurt their credit/tenant report. Inform residents that unfavorable
performance reports will be made available to future landlords, banks, mortgage
companies and other creditors whom inquire and who the residents may want to do
business with in the future. Most residents don't realize that their performance
can be made available to others, including reporting debts to all three
credit bureaus, so it will show up on the resident's credit report. That is
because most rental owners are not aware that they can utilize this effective
strategy and service on this site to report resident's debt.
Make it clear to residents that performance reports they
establish with you (good or bad) may affect them for many years. Assure, a
resident however, that it is your goal to always notify the resident as soon as
a rental violation occurs and give them an opportunity to dispute or immediately
correct any poor performance before it is put in or on their
records.
You now understand the Report Your Resident policy. To
see a sample WARNING form to notify residents that you will be reporting their
performance, CLICK HERE . One question
landlords want to know is: Whom do you actually report a resident's debt to
should that become necessary? There are good collection agencies that you can
work with to do this. I'd like to recommend one which has partnered with
MrLandlord.com to provide the service for landlords who visit this site, which
has provides this service to landlords, property managers,
and small (do-it-yourself mom and pop) rental owners. The simple online
reporting tool is available right on this site. The cost of the
service is only $12.95 to report a resident's debt to all three credit bureaus.
This service is gaining national attention and becoming one of the most
effective and inexpensive tools for rental management anywhere. There are very
few services on the internet which come even close to it, and there
are several tremendous benefits why every and all landlords should use
this service every time a resident vacated your property still owing you
money.
- You can now put new residents on notice that their
renting performance will be made available to
future landlords and creditors who inquire, and that the information will
become part of their rental record. If resident's are at all concerned
about what future creditors may find out, this strategy, when employed by
landlords and managers, should command the resident's attention right from the
beginning of the rental relationship and should help to make paying rent and
rental performance a top priority!
- You will get your rents more promptly and
have less late payment problems during the tenancy. When a resident fails to pay on time, you now have a tool to
greatly increase the chances that the payment will be paid immediately. A
common problem that landlords/property managers have is residents, who for
whatever reasons, don't pay the rent on time. You may send the proper legal
notice the day after the rent was due and not paid. Some landlords/property
managers offer a discount for early payment. Others add a late fee when
permitted by law. But, even these small charges are often not enough
motivation to get residents to always pay promptly or to even pay within 3 to
5 days of the due date.
The Resident Your Reporting policy gives the
resident a very important reason to pay. Residents are put on notice that if
they pay on time or correct a rental violation within 72 hours after
notification, unfavorable information will not be placed and kept on
their rental record. A notice to report your resident's unfavorable
information is also an excellent paper trail. A resident paper trail can be
especially helpful, for example, if your lease states that you can evict them
after two or three late rent violations a year.
- Your resident will correct lease violations promptly.
Some common violations are; keeping a pet when you have a no-pet policy,
allowing unauthorized persons to move in, creating disturbances by having loud
parties or unruly guests, not repairing damages to the property or having
health, community or safety violations/hazards on the property. Many of these
negative situations can and will be corrected promptly by putting the resident
on notice that the problem will be reported on their permanent records if not
immediately corrected. Once your residents know that you are serious about
taking care of your property, by using the notices, many situations will be
resolved before becoming a problem.
I hope you are seeing the full vision of this Report
Your-Resident policy. This idea has been used on a small scale by a few landlord
groups or associations, but they primarily wait until after a resident leaves
before they report any performance. THIS IS A BIG MISTAKE. The power and major
benefit of using this strategy is not to punish past residents. Nobody wins when
you have to actually report a resident. They have a bad report/tenant record,
and you have less money or damaged property or both. INSTEAD, your goal should
be to ENCOURAGE COOPERATION of current residents. That is why it is critical to
notify new residents of your report a resident policy and immediately remind
them of it (with a notice) if they break a lease violation so they have an
opportunity to CORRECT the problem. If all your problems are corrected promptly
this is a WIN-WIN situation. You have a cooperative resident and he keeps a good
tenant/credit record and rating.
Here are the six success steps to using the FREE "Report
Your Resident" policy and service:
- At the beginning of all rental relationships, notify
all new residents of your policy to report performance, (both good and bad) of
all residents.
- If a resident breaks a rental term (i.e. non-pay or
upkeep violation) you immediately send them a letter notifying them that they
have 72 hours to correct the violation before unfavorable information is
reported on their rental records and becomes part of their tenant
record. CLICK HERE to see a sample or to
print this notice.
- If the resident does not correct the violation within
the specified time period, use the Report Your
Resident Service Form on our website - www.mrlandlord.com to record
this information for your files.
- If the resident corrects the violation, inform the
resident that NO unfavorable information has been added to their records, and
thank them for their prompt cooperation.
- As an on-going reminder of your Report Your Resident
Policy, every 6 months, inform good residents that they will e provided with
a GOOD resident report that they can use with future landlords and
creditors to help rent or buy a home or automobile in the future.
- If a resident leaves still owing money for unpaid rent
or damages, use the Report Debt Service right on
this site to report money owed by resident to all three credit bureaus so that
the debt will appear on the resident's credit report.
CLICK HERE TO VIEW/PRINT "72 HOUR WARNING NOTICE" TO REPORT YOUR RESIDENT(s)
CLICK HERE TO LEARN HOW TO REPORT NEGATIVE ACTIONS OF CURRENT RESIDENTS
CLICK HERE TO VIEW/PRINT THE "REPORT YOUR GOOD RESIDENT" FORM
CLICK HERE TO REPORT BAD DEBTS OF FORMER TENANTS TO ALL 3 CREDIT BUREAUS
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