Anyone tried using the Landlord Credit Bureau?

Question

I'm considering signing up for a membership with the Landlord Credit Bureau to set up a new system for tenant screening and credit reporting their rent payments.  Anyone else a member?  They say on their site that they have a database of tenants.  I'm curious to know how good this database actually is.

I like the premise of communicating to my tenants that their rent payments will be reported to the credit bureaus each month.  It seems like a small way of restoring some of the power balance of my province's shameful rental laws.

Richard Borthwick · Answer

I've used Landlord Credit Bureau and the result was the renter who owed me money paid after receiving communication from them.  I looked into the legality and David Overland (above) is spreading disinformation.  If I was a betting man, I'd bet that he is a tenant who got caught by a landlord using the platform and didn't like getting caught.

Tucker Ash · Answer

I saw a few posts on this and decided to try them out. I first used it to report on a tenant that had just moved out and still owed me money. After receiving their emails we worked out a payment plan and I received the first payment about a month after they moved out.

My initial experience was good and so I just signed up my current tenants. Credit is a big motivator right now so this should be a way to help my tenants out and have them come to me first if they are struggling.

Robert Landis · Answer

@Jeremy Anan I believe Tucker is referring to the Landlord Credit Bureau. I found the company by searching Google for the name. Looks very interesting and I would be curious to see some more people on here with LCB reviews. Looks like they have a free signup so I guess it couldn't hurt to give it a try. If I decide to signup I will post a review and tag you Jeremy. If you get signed up and have an experience sooner than me... Please let me know.

Marjory Cook · Answer

Did you ever find out if they are good?

Allison Latchey · Answer

I signed up for the Landlord Credit Bureau as a Tenant almost 4 months ago. My landlord let me know about the service as a way to help build credit by paying my rent on time. I wasn't 100% it was going to help but after recently viewing my Credit Report I was amazed to see my score had increased by 45 points! Highly recommend using the Landlord Credit Bureau to help report your rent payments.

Julie Holtz · Answer

As a new landlord, I wanted to sign up for Landlord Credit Bureau but felt nervous after reading this. So I did what any rational person would do and got in touch with them. Radical thought - to actually reach out to the company and address my concerns. For anyone considering using Landlord Credit Bureau, and might be asking themselves - Is Landlord Credit Bureau legal in Canada? I would highly recommend doing the same thing. It pays to do the leg work. I asked flat out - Is Landlord Credit Bureau legal in Canada? Is Landlord Credit Bureau legit? If so, why is Landlord Credit Bureau the only company in Canada reporting rent to Equifax? I used this post @David Overland to explain why I felt nervous.

The comment about being under investigation for using measures that are not legal in Canada and against legislation in Canada concerned me. But worse was the comment about being part of the investigation and the possibility of leading to legal issues for myself.

Turns out there is a collection of tenants who are not so excited to have their rent payments contribute to their credit report. I couldn't imagine why!? Perhaps @David Overland you could shed some light on why? These tenants have been targeting Landlords like myself who want to know if Landlord Credit Bureau is legal in Canada.

Here are some of the key things I learned for anyone who is interested and wants to know more. Landlord Credit Bureau also provided me with a link publically available on the site. Go to the website and click on the footer link that says: Legal Framework Canada

Under Canadian Provincial and Federal law (i.e. PIPEDA) you may legally use the services provided by the LCB platform. LCB includes three primary divisions accessible within the platform. As long as the information reported is accurate, the LCB platform has numerous automated protections and guidance in place to ensure our landlord, property manager and tenant members are protected and that reporting and usage of the different services remains in compliance with relevant legislation. Here is how it works:

For a tenant who has given consent, such as through the inclusion of the LCB Application and Lease Clauses in their application for tenancy or lease, or by logging into the LCB tenant portal to confirm consent, nothing further is required.

For a tenant who pays on-time and does not owe money, but has not given consent, landlords may create a record using LCB’s platform for their internal recordkeeping purposes. The tenant then has the choice to opt-in to receive benefits from LCB (i.e. improved credit rating with other Credit Bureaus, positive Tenant Record). If such tenant does not opt-in nor provide consent, the landlord is still entitled to maintain a record of their tenancy using LCB’s platform, and as long as the tenant does not owe a debt, such record will solely be used for the landlord’s internal purposes and not shared. However, if such tenant ever owes a debt, then their debt would be subject to disclosure to Credit Bureaus by the landlord pursuant to the following paragraph.

For a tenant who does not pay rent when owed, and thus owes a debt, applicable legislation enables landlords to report to LCB without notice or consent under an approved purpose (i.e. to collect the debt). Late payments are immediately reflected on the LCB Tenant Record and upon a debt being owed for 30+ days the debt is shared with other Credit Bureaus.Since LCB’s inception, we are proud to share that there have not been any successful complaints filed against LCB or any of its landlord or tenant members for using LCB.  LCB handles the protection of all individuals and the security and accuracy of information within the LCB platform with the utmost priority.  Misuse of the LCB platform will not be tolerated.

Account Closed · Answer

@Evan Aagaard

Yes. It’s great leverage when signing new tenants. Report payment habits good and bad and directly impacts their credit rating. My tenant profile is mainly 20 somethings and I point out that the new iPhone will have to be purchase with cash if they have negative strikes on their credit. ... find the pain point and press... and for students, find parents pain point also (co-signer)... usually car loan and/ or mortgage. For small town folks who bank locally, it’s incredibly effective to call their bank directly prior to actually sending a file to collections... amazing how word gets around in a town of 10,000.

Allison Railey · Answer

I am fairly new to the Landlord Credit Bureau but my tenants (the good ones) love it. I also use LCB as a deterrent for professional tenants and to introduce a measure of accountability to the landlord/tenant relationship. At some point all tenants needs credit and if they aren't paying their rent then then they will feel it when they try and get a new cell phone/car.

My understanding is that LCB positions Landlords as creditors (which we are) and creates a separate trade line item on their credit report for rent. They have been pretty responsive to me when I ask questions so I highly recommend reaching out to them directly.

Jeremy Anan · Answer

@Tucker Ash Which service/company are you using for this? Please share their info. Thanks

Anyone tried using the Landlord Credit Bureau?

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