We introduced the Credit Builder platform to solve the long-standing problem that tenants’ rental payments did not count towards their credit scores. Along with rising house prices, this problem was making it harder than ever for first time buyers to get a foot on the property ladder. Now, using the Credit Builder app, tenants can build their credit simply by paying their rent, giving them more chance of being accepted for a mortgage when they are ready to apply.

In many cases, products and initiatives designed to help tenants can mean a concession is made by the landlords, and vice versa. But with Credit Builder, both parties benefit. As well as helping tenants increase their credit scores, the platform offers several advantages for landlords. Here are just some of the reasons why letting agencies and landlords love Credit Builder:

Tenants Pay on Time

It’s estimated that at any one time in the U.K around 70,000 tenants  are currently two months or more behind on rental payments. While this is annoying and costly for landlords, very often they are limited in what they can do – evicting a tenant is an expensive and lengthy procedure with The National Landlords Association estimating the average cost of an eviction at £900.

It obviously suits landlords much better if tenants pay on time, but there’s less motivation for a tenant to do so. However, if the tenant is paying via the Credit Builder platform then suddenly there’s a good reason to pay on time every month. Not only will credit scores be continually improved with the regular payments, but they will be docked points for any late payments just as they would with a real mortgage. This increased motivation to make timely payments means landlords will spend less time chasing payments and receive more rent on the expected date.

A Value Added Service

Let’s be honest; tenants often begrudge certain elements of the letting procedure. Administration fees are rarely popular, contract terms and conditions are set by the landlords with little room for negotiation and paying a month’s rent up front is never enjoyable. So if a landlord or letting agent can offer an extra service – for free – that does benefit the tenant in some way, then it will go a long way to helping them decide to choose one provider over another.

The Credit Builder platform can also be customised with an agency’s own branding; a gentle reminder of who has provided the service every time they log in to see their credit score has improved.

Customers for Life

Because Credit Builder is constantly providing updates to a tenant’s credit score, it is easy to see when they might be in a position to consider a mortgage. For an agency that deals in both lettings and sales, then a timely phone call or email could allow you to introduce them to properties that might be of interest and within their budgets.

Minimal Administration Required

Credit Builder has been designed to be as easy as possible to integrate into existing procedures and requires almost no extra administration on behalf of the landlord or letting agent. Seamless e-signing software allows permission documents to be completed quickly and easily, while all data feeds into the Rental Exchange are managed by us. It’s a valuable service for both tenants and landlords, that requires very little effort by either in order to reap the benefits.

Landlord or letting agent? Request a Demo to see how easy Credit Builder is to integrate into your rental procedures.