Rent reporting surges for Arizona tenants
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Annelise Capossela/Axios
Arizona has seen a significant increase in tenants reporting rent payments to credit agencies, according to a new Urban Institute report.
Why it matters: As Arizonans rent longer to postpone homeownership, rent reporting can help them build credit and secure better interest rates on credit cards, car loans and, eventually, mortgages.
How it works: Rent reporting allows landlords to report tenants' rent payments to major consumer credit bureaus.
- Updated scoring models now allow on-time rent payments to demonstrate credit-worthiness.
- Some landlords offer the service directly or renters can enroll through third-party providers.
By the numbers: Nearly 125,000 Arizona tenants used rent reporting in 2024, a 465% increase from 2020.
Zoom out: Arizona, Florida, Nevada and Georgia saw the biggest increases in rent reporting from 2020 to 2024.
Between the lines: These states have also seen some of the highest levels of multifamily housing construction, suggesting new apartment complexes may be more likely to offer the service to tenants, according to the report.
The intrigue: Urban Institute expert Daniel Teles told us research has shown that rent reporting can help people who don't have a credit score establish one and improve poor scores (below 500) to a "fair" level.
- But its impact on people with already-decent credit scores remains unclear.
The other side: Groups like the National Consumer Law Center warn that reporting services could backfire.
- While most services only report "positive" rent payments, there's a growing push to report all rental information, including missed payments, which could damage credit scores and allow future landlords a reason to deny applicants, Teles said.