What happens if you do not pay your doctor, cell phone, or utility bill? You will not only receive some less than friendly phone calls, but your debt will also be reported to Experian, Equifax, and TransUnion. These major credit bureaus will then ding your credit report to show that you owe money, and most debts will remain as a collection account for up to seven years!
Why do companies go to the trouble of reporting these debts? They do it because reporting the debt to the credit bureaus makes it difficult for the debtor to obtain credit, thus increasing the possibility they will get paid the money they are owed. It may also lower FICO scores. If it did not work, trust me, they would not bother reporting.
So why don’t landlords report previous tenants that owe them money to the credit bureaus? It cannot be a matter of cost or a lack of time because reporting is very inexpensive and easy to do. Either landlords don’t know they can report, or they are apathetic about it.
Don’t assume because you sued the tenant and received a money judgment that the money you are owed will show up on one’s credit report. Many simply do not, due to simple clerical errors. You would be surprised at the number of evictions that don’t show up either. Make sure the debt is entered on the credit report as a collection account by putting it there yourself.
In today’s economy, we need every penny of profit we can find. I promise you there are millions of dollars in uncollected tenant debt just sitting in filing cabinets. I bet you have some yourself. This is lost profit, a percentage of which is recoverable.
Up to 50% of tenant debt is recoverable if it is reported to the credit bureaus. Of course, none of it is recoverable if you leave it in your desk drawer. So dust off those old files of previous tenants who owe you money. Report them to the credit bureaus and begin collecting some much needed profit.
To begin reporting tenant debt to all three credit bureaus click here: Start Reporting Now!
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