A new bill could help Nevada tenants improve their credit score if they pay their rent on time each month.
The legislation would require landlords with more than 15 units to provide positive rental payment history to at least one consumer reporting agency, but renters must opt in.
Treasurer Zach Conine introduced the bill in Carson City on Wednesday afternoon. During an interview with KUNR, he said this could help someone go from renter to homeowner.
“If you’re a renter looking at your credit score, your best thing on there could be car payments or credit card payments, but it's a relatively small number, and it doesn't speak to someone’s ability to make a mortgage payment,” Conine said.
In Nevada, 42% of households are renters, according to the National Low Income Housing Coalition. Positive rent reporting could improve a person’s credit score by an average of 60 points, according to a 2021 TransUnion report.
The legislation currently states that negative rent payments, such as late or partial rent, would not be reported. However, the treasurer’s office told KUNR that it is reviewing this part of the bill to possibly make it more comprehensive and include all types of payments.
Right now, landlords can do this reporting on their own, but most don’t. Lawmakers and opposition raised concerns about what happens if a renter falls on hard times, as well as the potential burdens on landlords.
