HB 2323 does not provide transparency for the property owner or credit agencies and the result will be an increase in rent to cover the cost of additional insurance and late payments from bad renters.
Mark Harmsworth
Washington Policy Center
House Bill 2323 (HB 2323), introduced by Representative Strom Peterson (D-21), would require rental property owners to report rental payment history to a nationwide consumer credit agency. The reporting is only for on-time rent payments. There is no requirement to report late or missed rent payments.
Additionally, HB 2323, would require a rental property owner to stop reporting once a tenant is late on a rental payment.
Rental property owners have to balance the cost of renting a home against the risk assumed from a tenant who fails to pay on time. The cost of rent is driven by risk assumed.
Credit background checks allow property owners to make educated decisions on who the prospective renter is and evaluate the risk and cost of having that renter in the property. While most renters pay rent on time and take care of the home, there are some that do not.
The history of a tenant who does not pay on time would not appear on the credit reporting background check under HB 2323.
The bill also creates an unfunded government mandate on the rental property owner, who now has to take time each month to report rental payments to the credit agencies. This can be cost prohibitive and often the credit reporting setup fees can be several thousand and dollars, plus a monthly fee.
There is also a risk to the property owner that misreporting rental payments could open the door for a tenant to sue the property owner and be in violation of the fair credit reporting act.
HB 2323 does not provide transparency for the property owner or credit agencies and the result will be an increase in rent to cover the cost of additional insurance and late payments from bad renters.
Mark Harmsworth is the director of the Small Business Center at the Washington Policy Center.
Also read:
- Opinion: Were Republican voters just sleeping during the August primary election?
CCRP Chairman Matt Bumala says 60% of primary no-shows in the 17th and 18th districts were Republicans. - Opinion: WA Cares’ launch showcased care WA Cares did not provide
Gov. Ferguson showcased a caregiving arrangement at the WA Cares launch that the program had not paid for a single day of. - Opinion: Portland’s War on Cars Part 4 – A smarter automobile strategy to end gridlock
O’Toole argues fuel wasted in Portland-area congestion has sextupled since 1982, generating 250,000 tons of extra greenhouse gases annually. - Opinion: The Tooth Fairy’s secrets to making brushing & flossing magical
Delta Dental of Washington’s Tooth Fairy Experience offers free resources to help children build lifelong brushing and flossing habits. - Opinion: Transit ridership trends are dismal but regional plans are oblivious
Puget Sound transit passenger-miles fell 31% from 2015 to 2024 despite a half-million-resident population increase.
