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HB 938: What You Need to Know About Missouri’s Rent Payment Reporting Bill 

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by | Jan 24, 2025

7 MIN READ

Missouri House Bill 938 (HB 938) is the first of many new rent payment reporting bills expected to be introduced over the coming months and years. Following in the footsteps of California’s AB 2747 legislation, this bill would require landlords to report on-time rent payments to credit bureaus. 

This legislation aims to expand financial inclusion, helping renters build credit while creating benefits for landlords and property management companies. However, it also mandates changes in normal business practices that many landlords and multi-family housing managers may find overwhelming. 

We worked with our in-house experts to break down the key impacts of HB 938, including what to expect, what is means for landlords and residents alike, and how you can stay compliant when this legislation goes into effect.  

Key Takeaways 

  • HB 938 requires landlords to offer residents the ability to report positive rent payments to credit bureaus. 
  • Rent payment reporting can provide a pathway for residents to establish or improve credit scores. 
  • Rent payment reporting can benefit landlords by encouraging on-time payments and improving residents retention rates. 
  • Implementing rent payment reporting systems independently can be complex, but IDIQ offers seamless tools and resources to make compliance easier. 

What is HB 938? 

HB 938 is a legislative effort designed to promote financial inclusion by requiring landlords and property managers to report residents’ on-time rent payments to credit bureaus. The bill recognizes rent as a critical financial obligation and leverages it to help residents build stronger credit profiles. Rent payment reporting creates valuable tradelines tied to housing payments, which would otherwise be limited to homeowners with a mortgage. 

Current Status of the Bill and Timeline 

HB 938 was introduced by State Rep. Aaron Crossley to the Missouri House of Representatives first on Jan. 16, 2025, and read a second time on Jan. 21, 2025. The bill outlines specific deadlines for landlords and property management companies to comply and includes measures to ensure proper reporting practices. 

If passed, the proposed effective date for this bill is Aug. 28, 2025. The law would apply to new leases starting Feb. 1, 2026, and existing leases as of Aug. 28, 2025. Landlords would be required to start offering on-time rent payment reporting to all eligible residents by Feb. 1, 2026.  

The hearing for this bill has not yet been scheduled. 

Compliance with HB 938 

The primary requirement for compliance with HB 938 is for landlords and property management companies to offer residents the option to report positive rent payments to the credit bureaus. This entails setting up a system to accurately track and report on-time rental payments.  

Some landlords may be exempt from the bill, such as landlords or buildings with fewer than 15 units, some corporate entities, and assisted housing developments.  Landlords and property managers should familiarize themselves with the bill before its implementation to ensure full compliance. 

Under HB 938, Landlords are Required To: 

  • Offer On-Time Rent Payment Reporting: 
    Landlords must provide residents the option to report their positive rental payment history to consumer reporting agencies. This option will need to be available for all leases starting at the specified bill implementation dates and must be offered annually. 
  • Notify Residents: 
    Landlords are required to inform residents about the positive rent payment reporting option, including the process, potential benefits for credit building, and any associated fees. 
  • Ensure Transparency and Accuracy: 
    Landlords must maintain accurate records of residents’ on-time rental payments and ensure any reported information is accurate to prevent disputes. 
  • Comply with Fee Guidelines: 
    Any fee charged for rent payment reporting cannot exceed the lesser of $10 per month or the actual cost to the landlord. No fees can be charged if there are no associated costs for reporting. 
    Failure to pay the fee will not result in the eviction of the resident, nor be deducted from the security deposit; but the landlord may stop reporting rent payments after 30 days of non-payment. 
  • Follow Regulations: 
    Follow any guidelines established by the state regarding the frequency and format of the reports.  

Implementing Rent Reporting Systems 

To comply with HB 938, landlords and property management companies may need to implement or enhance rent payment reporting systems. The following are some tips to help streamline the process. 

  1. Evaluate Existing Systems: 
    • Review current property management software to determine whether it can handle positive rent payment reporting. 
    • Identify any upgrades or new tools needed to meet the requirements of HB 938. 
  2. Select a Rent Payment Reporting Service: 
    • Choose a reliable service that integrates seamlessly with your property management software. 
    • Select providers that report to all three major credit bureaus to maximize credit-building benefits for residents. 
  3. Integrate and Train Staff: 
    • Work with your rent payment reporting service provider to help ensure a smooth implementation. 
    • Train your team on the new procedures to guarantee timely and accurate reporting. 
  4. Communicate with Residents: 
    • Notify residents about the positive rent payment reporting option, explaining how it works and its credit-building advantages. 
    • Provide clear instructions on how to opt in or out, along with answers to frequently asked questions.
    • Address concerns proactively to encourage participation and foster positive relationships.

By following these steps, landlords and property management companies can not only comply with HB 938 but also support residents in building their credit histories through consistent rent payments.

💡 Want help offering rent payment reporting to your residents? Partner with IDIQ today

IDIQ Tools and Resources Available to Assist in Compliance 

IDIQ offers easily implementable, comprehensive rent payment reporting services to help property managers comply with HB 938. By partnering with IDIQ, landlords and property managers can make sure they meet all legislative requirements while enhancing the credit-building opportunities for their residents. 

IDIQ simplifies rent payment reporting with: 

  • Integrated Reporting Tools: Easy-to-use software for landlords and property managers. 
  • Compliance Support: Ensures adherence to Fair Credit Reporting Act (FCRA) standards. 
  • Resident Communication Assistance: Pre-built materials to educate renters about rent payment reporting benefits. 
  • Automated Processes: Streamlines reporting to major credit bureaus. 

Benefits of Rent Payment Reporting 

While rent payment reporting won’t be required in Missouri until HB 938 passes, there are significant benefits to getting ahead of the competition and offering rent payment reporting now. Providing streamlined rent payment reporting provides advantages for property managers, residents, and the property management industry as a whole.  

Benefits of HB 938 for Landlords and Property Managers 

  • Encouragement of On-Time Payments: Rent payment reporting motivates residents to pay rent on time, knowing their timely payments can positively impact their credit scores.  
  • Reduction in Resident Turnover: By offering residents a way to build their credit through rent payments, property managers can increase resident satisfaction and retention, potentially reducing turnover rates.  
  • Enhancement of Resident Satisfaction: Providing a rent payment reporting service demonstrates a commitment to residents’ financial well-being, fostering a stronger sense of community and trust.

⭐️ Partner with IDIQ today and stay compliant with easily implemented rent payment reporting and more. 

Benefits of HB 938 for Renters and Residents 

  • Building Credit History: Can help renters establish or improve credit scores using positive rent payment data. 
  • Financial Empowerment: Can improve access to loans, credit cards, and better financial opportunities. 
  • Lower Security Deposits: Stronger credit profiles may reduce move-in costs such as security deposits. 

Setting Up Rent Payment Reporting 

Implementing rent payment reporting may feel overwhelming, especially without the proper tools and support. Here’s a quick look at the essentials and potential challenges you might encounter when managing this process independently. 

The Basics 

Rent payment reporting involves securely transmitting rental payment data to credit bureaus. This process requires accurate payment tracking, data security, resident authorization, and adherence to FCRA requirements.  

Challenges of Setting Up Rent Payment Reporting Independently 

Tackling rent payment reporting without streamlined software or professional support can cause a number of challenges, including: 

  • Administrative Burden: Tracking and reporting payments manually is time intensive and can be a drain on resources. 
  • Compliance Risks: Failing to meet FCRA standards can lead to penalties. 
  • Resident Communication: Effectively communicating to renters on rent payment reporting benefits can be challenging. 

Given these challenges, partnering with a specialized service like IDIQ can simplify the process, ensuring compliance, accuracy, and efficiency. 

Why Partner with IDIQ for Rent Payment Reporting 

Partnering with IDIQ for rent payment reporting offers numerous benefits that streamline compliance with HB 938 and enhance your property management operations.  

Expertise in Rent Reporting Solutions  

IDIQ brings extensive experience in rent reporting solutions, helping you meet all the requirements of HB 938 effortlessly. Our expertise helps you navigate the complexities of the legislation, providing peace of mind and allowing you to focus on managing your properties.  

Professional Support  

IDIQ provides continuous support throughout the implementation process. From initial setup to ongoing management, our team is dedicated to helping you succeed. We offer training, resources, and personalized assistance to ensure your rent reporting system operates smoothly.  

Commitment to Helping Property Managers Achieve HB 938 Compliance  

We aim to help you maximize the benefits of rent reporting, enhancing tenant satisfaction and retention while positioning your properties as attractive options for responsible renters.  

Financial Benefits & Ancillary Income Opportunity  

IDIQ can offer the highest revenue share to property management company partners. Alternatively, you have the option to forgo commission and reduce the cost of a plan for your residents, providing flexibility in how you wish to structure your partnership 

Additionally, implementing rent payment reporting with IDIQ can lead to increased revenue through improved tenant retention and satisfaction. Residents who see tangible benefits in their credit scores are more likely to renew leases, reducing turnover costs and vacancies.  

Compatibility with Major Accounting Platforms  

IDIQ rent payment reporting solutions are designed to integrate seamlessly with major property management and accounting software platforms, helping ensure smooth implementation and minimal disruption to your existing processes.  

Ease of Implementation  

Our solutions are user-friendly and require minimal effort from your on-site teams. IDIQ handles the heavy lifting, allowing your staff to focus on their core responsibilities.  

Marketing Collateral Provided by IDIQ  

IDIQ provides marketing materials to help you communicate the benefits of rent reporting to your residents, enhancing enrollment rates and resident satisfaction. 

Empowering Renters and Landlords: HB 938’s Lasting Impact 

HB 938 marks a significant step toward financial inclusion in the Missouri rental market. By making rent reporting mandatory, the bill empowers renters to build credit while helping landlords and property management companies improve resident relationships and encourage timely rent payments.  

Partnering with IDIQ helps ensure that both parties maximize the benefits of this groundbreaking legislation with seamless integration.  

IDIQ offers comprehensive rent payment reporting services that seamlessly integrate with existing systems, ensuring compliance with HB 938 while maximizing benefits for property managers and residents. Our solutions not only help you meet regulatory requirements but also enhance operational efficiency, resident satisfaction, and financial outcomes.  

Don’t wait until the last minute to start preparing. Partner with IDIQ today to ensure your property management practices are compliant, efficient, and beneficial to your residents. 

Become a Partner!

Ready to unleash financial freedom for your clients and propel your business to new heights? Partner with IDIQ – the ultimate financial ecosystem for success.

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