Improving the Rental Housing Experience

Freddie Mac Multifamily has set and worked to exceed ambitious, mission-driven goals to preserve and support the creation of affordable rental housing units. Last year alone, we financed more than 423,000 affordable rental units across the country.

That focus on affordability will continue to drive our business forward, but we know there is more we can do to improve the rental housing experience for tenants. That work includes our efforts to encourage the adoption of resident-centered housing solutions. We aim to further encourage market-driven efforts that strengthen the relationship of landlords and residents by putting renters in a position to thrive.

Through our work with industry partners and stakeholders, we have identified specific practices that focus on financial empowerment, flexibility and supportive services.

Financial Empowerment

In 2021, we launched a novel credit-building program based on the simple belief that renters who pay their rent on time and in full each month should get the credit they deserve - and improve their credit score for doing so. By encouraging multifamily operators to report on-time payments to the three major credit-reporting bureaus, we are helping renters gain access to credit and obtain competitive rates for a range of financial services.

To date, approximately 500,000 renters have enrolled in our credit-building program, with more than 300,000 of them improving their credit score. And 55,000 participants who were formerly credit invisible have established credit scores for the first time.

In addition to getting renters the credit they deserve, we are working with our Optigo^® lenders to offer renters access to Freddie Mac CreditSmart^®, a free online educational tool that provides a foundational understanding of personal finance and housing topics, including a course dedicated to resources for renters.

Access to these tools can help renters effectively manage their resources, plan for the future and achieve their financial goals.

Flexibility for Renters

Along with creating opportunities for renters to strengthen their finances, we are working to identify and encourage best practices that better support renters in a variety of ways.

For example, many multifamily operators have pioneered rental payment date flexibility initiatives, which are a great example of a practice that can be offered at little cost to the property owners but can better align with the cash flow reality of renters. For example, if a renter's pay schedule does not line up with the standard due date, agreeing to an alternative payment schedule can help them avoid late fees and other negative impacts of a late payment.

Similarly, coming up with enough money to cover a security deposit can be a significant obstacle for many renters. Security deposits are often cited as a barrier to affordable rental housing and a bureaucratic challenge for landlords. We have identified a range of alternatives to traditional security deposits, along with key considerations a landlord should make when determining whether this approach is right for them.

Supportive Services

Housing and health are intrinsically linked - access to safe, stable housing has a significant impact on health outcomes and overall quality of life. We are reinforcing those benefits by encouraging property owners to offer health and wellness services for residents. We require programs like these through our Tenant Advancement Commitment offering.

We have seen the direct impact these services can have on communities across the country. In Florida, Walden Lake apartments partnered with nonprofit Project Access to offer a resident resource center that proved to be a critical lifeline for one single mother and small business owner. In New York City, Homeward Harlem is providing counseling and job training for LGBTQ+ youth at risk of homelessness.

In addition to community-sponsored services, we work with Renter Resource Organizations across the country who are on the front lines, providing services to renters and helping support housing stability in local communities.

The multifamily market has made significant strides in prioritizing renters' well-being, and we will continue to build on that progress. Investing in people is always a smart move, and adopting resident-centered housing solutions is a great way for the multifamily housing industry to do good while doing well.