The Rent Plus fee on your lease is a monthly charge that pays a third-party company to report your rent payments to the credit bureaus. Unlike a mortgage, ordinary rent does not show up on your credit report automatically, and this fee funds the service that puts it there. Whether the charge is worth paying comes down to two things: the kind of reporting your landlord signed up for, and how reliably you pay on time.
What the Fee Actually Pays For
Property owners contract with fintech companies such as RentPlus or Esusu to collect tenants’ payment data and send it to one or more of the three nationwide credit bureaus: Equifax, TransUnion, and Experian.1Consumer Financial Protection Bureau. Companies List – Consumer Reporting Companies The fee covers the technology and administration that formats your payment history into a file the bureaus will accept.
In many buildings, the charge is not a standalone line item. Landlords often fold it into a “Resident Benefit Package” alongside unrelated extras like pest control, air-filter delivery, or a renter’s insurance policy. These bundles usually run $20 to $50 or more per month, which makes it hard to tell how much is actually paying for credit reporting. When the service is offered on its own through the provider, pricing tends to fall between $5 and $10 a month.
Positive-Only vs. Full-File Reporting
Before you decide anything else, find out which of two reporting methods your landlord uses. The difference is the whole story.
With positive-only reporting, only on-time payments get sent to the bureaus. Late or missed payments do not appear. The U.S. Department of Housing and Urban Development has described this approach as creating “a low risk for negative impact on residents and their credit scores.”2U.S. Department of Housing and Urban Development. Frequently Asked Questions – Positive Rent Reporting
With full-file reporting, every payment status is reported, including late and missed ones. A single late payment can lower your score and will be visible to future landlords who pull your report. If you ever pay a few days behind, full-file reporting can do more harm than the on-time months do good.
Ask your property manager or the reporting company directly which method applies to your account. That one answer should drive your decision about whether to keep paying.
How Much It Can Help Your Credit
The upside is usually modest. Research by the New York City Comptroller’s Office found that 76 percent of renters with an existing credit score would see it rise if rent were factored in, but more than half of those gains were only 1 to 10 points. About 19 percent would gain 11 points or more.3Office of the New York City Comptroller. Making Rent Count Report Overview For people with no credit history at all, the same study estimated an average new score around 700, which lands in the prime range.
There is also a limitation worth knowing about. The newer scoring models that use rent data, FICO 10T and VantageScore 4.0, were validated by the Federal Housing Finance Agency for use by Fannie Mae and Freddie Mac.4U.S. Federal Housing Finance Agency. FHFA Announces Validation of FICO 10T and VantageScore 4.0 for Use by Fannie Mae and Freddie Mac But the implementation date for mortgage lending has been postponed indefinitely.5Freddie Mac. Credit Score Models and Reports Initiative Most mortgage lenders still use older Classic FICO models that ignore rent data. Reported rent may help with credit card issuers or auto lenders who use the newer models; it may not move your mortgage application today.
When You Actually Owe the Fee
The fee is enforceable when it appears in your lease or in a separate addendum you signed. Once agreed to in writing, it is treated like any other lease obligation, and nonpayment can be considered a breach. A landlord cannot add the fee mid-lease without your written consent unless the original contract specifically allows mid-term changes.
If the fee was buried in fine print, never disclosed before signing, or produces no actual service, it may be vulnerable under state consumer protection laws. Tenants who believe a fee was imposed improperly can file a complaint with their state attorney general’s office or pursue the amount in small claims court.
Your Rights Over the Data Being Reported
Whether or not you agreed to the fee happily, the Fair Credit Reporting Act controls how the company reports your information. The reporting company, called a “furnisher,” cannot report information it knows or has reasonable cause to believe is inaccurate.6Office of the Law Revision Counsel. 15 USC 1681s-2 – Responsibilities of Furnishers of Information to Consumer Reporting Agencies If an error turns up later, the furnisher must notify the credit bureau and correct the record promptly.7Federal Trade Commission. Using Consumer Reports – What Landlords Need to Know
You can dispute inaccurate rental information directly with the furnisher or through the credit bureau. Once a dispute is filed, the furnisher generally has 30 days to investigate, with a possible 15-day extension in certain cases.8Consumer Financial Protection Bureau. What Should I Do if My Rental Application Is Denied Because of a Tenant Screening Report The CFPB has said it pays particular attention to the accuracy of rental information in consumer reports.9Consumer Financial Protection Bureau. Enforcement Compliance Bulletin 2021-03 – Consumer Reporting of Rental Information
The Real Risk of Full-File Reporting
If your landlord uses full-file reporting, each late or missed payment lands on your credit file, and the fallout goes beyond a few lost points. Many landlords screen applicants by pulling credit reports, and a single 30-day-late rent notation can trigger an automatic denial. Consumer advocates have documented cases where renters with adequate income and credit were rejected solely because one past rent delinquency showed up on their report.
The math is asymmetric. The upside of on-time reporting is usually a small score bump. The downside of one reported late payment can mean trouble finding housing for years. If your rent occasionally slips past the due date, ask whether you can switch to positive-only reporting or opt out before a late payment is sent.
How to Opt Out
Start with your lease and any addendums to find out whether the service was presented as optional or mandatory. The next step depends on that answer.
- If enrollment was optional, you can usually turn it off through your online resident portal under the benefit package or account settings. Changes may take one billing cycle.
- If the service is bundled in a Resident Benefit Package, some landlords let you drop individual items while others require you to accept or reject the whole bundle. Check the addendum for the specific terms.
- If the fee is written into the lease as a required charge, you generally cannot remove it before the lease term ends. You can negotiate its removal at renewal.
If the portal does not offer a toggle, send a written request to your property management office asking to be removed from the service, and keep a copy. You can also contact the reporting company directly; your monthly statement should list an account number that helps them locate your file. In either message, reference the specific lease addendum and state that you are opting out of the credit-reporting service and all associated fees.
What Happens to Your Credit Data After You Cancel
Once you cancel, the provider stops sending new payment data and closes the rental tradeline on your credit report. The payment history already reported generally stays on your file. Closed tradelines in good standing can remain on your report for up to 10 years, so the on-time payments you built up will keep contributing to your score for a while.
If any of the previously reported data is wrong, you can still dispute it after canceling. The furnisher’s duty to investigate disputes does not end when you stop paying for the service.6Office of the Law Revision Counsel. 15 USC 1681s-2 – Responsibilities of Furnishers of Information to Consumer Reporting Agencies
Free and Low-Cost Alternatives
If you want rent on your credit report but not through your landlord, independent services exist. They typically connect to your bank account, use transaction matching to identify rent payments, and report them directly to one or more bureaus. Some will even report up to 24 months of past payments for a one-time fee.
Because these services run through your bank account rather than your landlord’s software, you control enrollment and can cancel without involving your property manager. Before signing up, confirm which bureaus the service reports to and whether it uses positive-only or full-file reporting. A free service that reports late payments carries the same risk as a paid one.