Entrata, a vendor of multifamily management software, announced that it had acquired Rent Dynamics, which provides resident rent reporting and financial resources that focus on economic inclusion and residential financial health.
The companies did not disclose financial terms of the deal.
Rent payment reporting to credit agencies has been seen as a way to improve credit standing of consumers. Regular timely payments reports can be accepted and noted by credit reporting agencies, helping to establish or improve an individual’s credit score.
Rent Dynamics was one of the three rent reporting companies that Fannie Mae chose to work with, in addition to Esusu Financial and Jetty Credit, last September. For tenants who can pay on a timely basis, there is the possibility of an improved credit score that can eventually help in things like eventually applying for a mortgage. Esusu, Jetty, and Rent Dynamics had all mentioned in their marketing that they help property owners build ESG initiatives by working with renters. Fannie Mae covers the costs for property owners.
What might be of most interest to landlords and property management firms, though, is the carrot effect of rent reporting and what it can deliver to them. As Esusu puts it last September, operators can see “a 25% increase in on-time rent payments,” presumably because people don’t want to hurt their credit reports. “Plus, 2/3 residents prefer apartments with rent reporting,” the company said.
“The addition of Rent Dynamics’ RentPlus products to Entrata’s suite of resident services will further cultivate a powerful and robust operating system to support resident-focused owners and operators,” Entrata said. “Rent Dynamics functionality will be partnered with Entrata’s existing features, enabling property owners and operators to provide their residents the capability to streamline utilities, obtain renters insurance, and build credit by making on-time payments, all through Entrata’s single-sign-on platform.”
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.