A New Consumer-Reporting Law Creates an Amenity Opportunity

On this blog, we frequently write about amenities. We praise those that deliver ROI to apartment operators, criticize the habit of adding amenities that don’t. And we advise many clients and readers on how to realize the returns on their amenity investments. Most of the time, we focus on the kinds of amenities that enhance physical assets. However, the passage of a recent bill in California reminded us that there is more to amenitizing apartments than crown moldings and granite countertops.
On July 1, California SB-1157 will go into effect. The new law will require landlords of assisted housing developments (i.e., multifamily rental housing whose development receives governmental assistance) to extend an option for residents to have their rental payments reported to at least one consumer reporting agency. The bill seeks to address: “Lack of credit history as a self-perpetuating barrier to economic mobility.” By simply reporting monthly rent payments, residents have an opportunity to build credit history. The bill also highlights an opportunity for multifamily operators: to offer an easy, automated way to report rent payments to credit bureaus and help their residents to build their credit scores.
Credit-Building as an Amenity?
The California law provides a natural catalyst for innovation: operators must at least offer the service to all new residents. Our friends at multifamily payments specialists Domuso, for example, moved quickly to integrate Resident-Link, a leading provider of credit reporting and identity protection, into its digital payments platform. The innovation makes it easy for operators to comply with the new law. But, more importantly, it allows multifamily residents to……