Writer: Eric Bank
Editor: Lillian Guevara-Castro
Reviewer: Adam West
Key Takeaways
- TransUnion says fewer property managers are furnishing rent data, but overall reporting is climbing as more tenants self-report.
- Under FHFA’s July 2025 policy, Fannie Mae and Freddie Mac must use VantageScore 4.0, a credit model that factors in rent, giving renters a new way to strengthen their mortgage applications.
- Platforms like Esusu, RentRedi, Avail, and Self are gaining ground as renters seek new ways to build credit through monthly payments.
Property managers are pulling back from rent reporting, but more renters are choosing to self-report, according to TransUnion’s September 2025 report that shows how rent reporting is changing.
Manager-reported data fell to 44% from 48% a year earlier, a drop likely tied to administrative burdens or costs but that could also be connected to the end of a slew of free trials for positive rent reporting pilot programs with Fannie Mae and Freddie Mac that launched in recent years.
We spoke with Wemimo Abbey, Co-Founder of the fintech Esusu, a platform that helps both property managers and renters report rent payments to all three major credit bureaus.
“(Last year) would have marked the end of the free trial for the first wave of property owners, which explains the slight dip,” Abbey said. “Still, that 44% of property managers have opted to continue rent reporting is remarkable. It shows that property managers are willing to pay for rent reporting as an amenity.”
Meanwhile, the share of renters reporting their payments on credit reports increased from 11% in 2024 to 13% this year, indicating that more tenants are taking the initiative rather than relying on landlords.
In July, the Federal Housing Finance Agency required lenders working with Fannie Mae and Freddie Mac to adopt VantageScore 4.0, a credit model that factors in rental payments — unlike traditional FICO scores.
The move could open the door to mortgages for renters with limited credit histories. By reporting rent, even those without loan or card histories can turn their payment record into a foundation for building home equity.
“Scoring 33 million more consumers, VantageScore’s model includes a broader range of factors like rent and this FHFA directive could lead to an additional 5 million people affording homeownership,” Abbey said.
Rental payment history can serve as alternative scoring data while lifting credit profiles of thin-file consumers.
TransUnion also noted rental data makes a difference today. Survey feedback shows 57% of renters are more interested in renting from property managers who report, and 80% are more likely to pay on time when reporting is in place. It’s a win for both sides: Renters gain credit history, and landlords encourage on-time payments.
Who’s Powering Self-Reporting?
As property managers step back, third-party platforms are filling the gap. Current contenders are:
• RentRedi: Allows renters to report payments to the three major bureaus, including the option for a retroactive history.
• Avail (part of the Realtor.com network): Offers reporting to TransUnion for a fee, targeted toward renters in small or individually owned buildings.
• Self: Provides reporting for three bureaus, with flexible pricing and up to a two-year backfill of payments.
These services are positioned as consumer tools for building credit. With FHFA’s rulemaking raising the stakes, self-reporting is becoming harder to ignore.
Why It Matters for Subprime Lenders
These reforms have direct effects for nonprime lenders. As more consumers use rent to strengthen credit reports, lenders may see a deeper pool of creditworthy borrowers with verifiable payment histories.
That brings broader underwriting opportunities and reduces some default risk. It also pressures lenders to develop and integrate nontraditional data into their systems.
Rent reporting is also closely tied to risk management. Limited-file borrowers often lack depth to pass standard screens, leading to higher prices or outright refusals.
Verified rent history provides a clearer picture of pay habits, potentially minimizing losses and improving performance. It could also reduce reliance on high-cost products by making safer, lower-rate credit available to a wider group.
Competition is another factor. Lenders that adopt rent data early may reach more borrowers and build stronger loyalty. Those that delay may see competitors achieve better results by incorporating rent sooner.
Industry Takeaway
The message is clear: Rent reporting can no longer be an afterthought. As FHFA mandates VantageScore 4.0 and consumers step in to self-report, rental data is entering the spotlight of credit and lending discussions. Subprime-focused lenders that adapt early may be best positioned to serve the next wave of borrowers.
