- Utah's SB76 rent reporting bill faces skepticism from the Senate Business Committee.
- Sen. Jen Plumb's proposal aims to help renters improve credit for homeownership.
- The committee voted 6-1 to hold the bill, citing landlord responsibility concerns.
SALT LAKE CITY – A good credit score can make a big difference for a potential homebuyer to get a mortgage, especially one with a lower interest rate.
Sen. Jen Plumb, D-Salt Lake City, said she wants to help renters improve their credit and inch closer to homeownership by having their rental payment history reported to consumer reporting agencies.
SB76 would give landlords the option to offer rent reporting while setting the terms and guidelines for doing it.
But the Senate Business and Labor Committee voiced skepticism over how it would work – and whether it's the landlord's responsibility to help a tenant improve their credit. Ultimately, the committee voted 6-1 on Wednesday to hold the bill, likely preventing it from moving any further in the remaining days of the legislative session.
Plumb, a physician who once worked as a realtor, pitched her proposal as a "little start" toward helping renters afford a home. Utah's housing market is expensive, with the median sales price sitting at $505,000 in January.
"This seems like a pretty low ask for something that's potentially really high yield," she told the Senate committee. "Within one year of paying rent, you could potentially reach a 700 credit score if you've had good reporting, and if that's all you've got, you're on your way."
Alejandro Puy, a Salt Lake City Council member, said he's met people in his community who have been renting for years due to poor credit.
"I recognize the simple truth that paying rent on time, month after month, is a clear and responsible financial behavior," Puy said. "In declining homeownership rates in our state, this is a key piece to solve some of our bigger problems."
But multiple senators on the panel said they struggled with what the bill would do. Sen. Scott Sandall, R-Tremonton, expressed concern about requiring private businesses to help people improve their credit scores.
"I don't think that's where this burden should fall," Sandall said. "I think people should increase their credit based on them being able to do what they need to do."
Nick Lloyd, an attorney representing landlords, said the bill imposes additional "hoops" and "red tape" for property owners to navigate, while disincentivizing them from taking part in positive rental reporting on their own.
Justin Allen, with the Rental Housing Association of Utah, also opposed the bill. He maintained that landlords should be able to recoup the cost of their time in reporting rental payments. However, the bill would only allow them to charge a fee not exceeding the "owner's actual cost of reporting a renter's rent payment."
Still, Allen said his organization is "committed" to educating both tenants and landlords about ways to improve credit.
"(We) definitely want to be part of finding some solutions in this space," Allen said, "but don't support the bill at this time."
