Credit Based Rent Pricing

Banks have charged different interest rates and fees based on credit for years. More and more utilities are starting to charge customer service charges based on credit and of course, your insurance rates have long been influenced by how you met your financial obligations.

But, what about rents?

Some landlords are starting to adjust the amounts they collect from their tenants based on the credit strength of the tenants. Many claim this is discrimination and there are probably some localities either preventing it or limiting it, or they will. But, it isn't discrimination under any of the protected classes of the Fair Housing Laws.

If it isn't prohibited in your area, you owe it to yourself to consider adjusting what you charge your tenants based on their credit history the next time their lease comes up for renewal and for all new tenants.