Navigating Missouri’s HB 938: A Comprehensive Guide to Rent Reporting and Its Impact on Your Rental Portfolio

In today’s competitive rental market, staying ahead of regulatory changes isn’t just smart—it’s essential for protecting your bottom line and fostering stronger tenant relationships. If you’re a property owner or manager in Missouri, one bill in particular demands your attention: House Bill 938 (HB 938). As of this writing, HB 938 continues to progress through the Missouri state legislature, having been referred to the Emerging Issues Committee earlier this year. This proposed legislation could soon mandate that landlords provide tenants with the opportunity to report their on-time rent payments to major credit bureaus, fundamentally shifting how we view rent as a tool for financial empowerment.

Drawing inspiration from California’s AB 2747—which took effect in 2024 and has already transformed rent reporting practices in the Golden State—HB 938 is part of a growing national trend toward greater financial inclusion. Renters, who make up nearly 34% of Missouri households according to recent U.S. Census data, often face barriers to building credit despite faithfully paying their largest monthly expense: housing costs. By bridging this gap, HB 938 not only benefits tenants but also equips landlords with a powerful incentive for timely payments and reduced operational headaches.

At Credit Gnomes, we’ve been at the forefront of rent reporting solutions for years, helping property managers across the country integrate seamless, compliant programs that report both positive and negative payment histories to Equifax, TransUnion, and Experian. Whether you’re managing a small portfolio or a large multifamily complex, this guide will unpack HB 938 in detail, explore its implications for your business, and show you how partnering with Credit Gnomes can turn compliance into a competitive advantage. Let’s dive in.

The Evolution of Rent Reporting: From Perk to Policy Imperative

Rent reporting started as an innovative add-on service offered by forward-thinking property management firms in the mid-2010s. Services like ours at Credit Gnomes pioneered the concept, allowing tenants to opt into programs that translate their rent payments into credit-building data. Fast forward to today, and what was once optional is becoming enshrined in law.

Missouri’s HB 938 builds on successes seen elsewhere. In California, AB 2747 requires landlords with 15 or more units to offer rent reporting starting July 1, 2024, resulting in a reported 15-20% uptick in on-time payments among participating properties, per early industry analyses. Nationally, programs like these have helped over 2 million renters establish or improve their credit scores, according to TransUnion data. For Missouri, where the average rent in major cities like Kansas City and St. Louis hovers around $1,200-$1,500 per month, HB 938 recognizes that renters deserve credit for these commitments—just as mortgage payers do.

The bill’s core philosophy? Rent isn’t just a bill; it’s a financial milestone. By mandating opt-in reporting for positive payments only, HB 938 minimizes risk for tenants while incentivizing good behavior. If enacted, it could launch Missouri into the ranks of states like Colorado, New York, and Oregon, where similar laws have boosted tenant retention by up to 10%, as evidenced by studies from the National Low Income Housing Coalition.

Breaking Down HB 938: Key Provisions and Timelines

At its heart, HB 938 aims to democratize credit building by requiring landlords to facilitate the reporting of on-time rent payments to at least one of the big three credit bureaus (Equifax, TransUnion, or Experian). Here’s a closer look at what the bill entails:

Core Requirements

• Opt-In Mandate: Landlords must proactively offer tenants the chance to enroll in rent reporting. This isn’t buried in fine print—notification must be clear, written, and include all pertinent details, such as how reporting works, potential fees, and the benefits to the tenant’s credit profile.
• Reporting Scope: Only positive, on-time payments qualify for reporting. Late or missed payments aren’t automatically dinged on credit reports under this law, creating a “positive-only” framework that’s tenant-friendly and low-risk. This approach has been praised for encouraging participation without fear of penalties.
• Frequency and Flexibility: Tenants can opt in at lease signing and must be reminded annually. They retain full control, able to enroll or disenroll at any time. However, if a tenant opts out, they face a six-month waiting period before re-enrolling—a measure designed to prevent frequent toggling that could complicate reporting accuracy.
• Fee Structure: Any administrative fees for the service are strictly capped at $10 per month or the actual cost incurred by the landlord (whichever is less). This ensures affordability and prevents profiteering.

Applicability and Deadlines

HB 938 isn’t a blanket rule for every mom-and-pop landlord. Compliance kicks in based on lease timelines:

This staggered approach allows for preparation, but don’t sleep on it—properties with leases renewing mid-2025 will need systems in place sooner.

Who Qualifies (and Who Doesn’t)?

Not every rental operation falls under HB 938’s umbrella, thanks to thoughtful exemptions:

• Small-Scale Owners: Landlords with fewer than 15 rental units are generally exempt, unless they’re affiliated with a larger entity like a corporation, Real Estate Investment Trust (REIT), or LLC with corporate ties. This protects independent operators while targeting bigger players.
• Specialized Housing: Assisted housing developments (e.g., Section 8 properties) and certain subsidized programs are off the hook, recognizing the unique administrative burdens in these sectors.
• Corporate Thresholds: If your portfolio exceeds 15 units through any business structure, you’re in—regardless of how you slice it.

For those in scope, accurate record-keeping is non-negotiable. Landlords must maintain verifiable payment logs to support clean, error-free reporting. Integrating a robust platform like Credit Gnomes’ system ensures this happens seamlessly, with automated tracking and bureau submissions.

Operational Overhaul: How HB 938 Will Reshape Your Day-to-Day

Implementing HB 938 isn’t about slapping a checkbox on your lease template; it’s an opportunity to modernize your operations. Here’s what property managers can expect:

Integration Challenges and Solutions

• Software and Tech Upgrades: You’ll need a reliable rent reporting partner to handle data transmission securely. At Credit Gnomes, our platform integrates directly with popular property management software (like Yardi, AppFolio, and RealPage), automating everything from opt-in tracking to monthly reports. No more manual spreadsheets or compliance nightmares.
• Staff Training: Educate your team on explaining the program to tenants. We offer free training modules and customizable tenant-facing materials, making the rollout as smooth as a well-oiled lease signing.
• Lease Language Updates: Revise templates to include clear disclosures. Our legal team provides Missouri-specific templates compliant with HB 938 drafts, saving you hours (and attorney fees).

The Tenant Experience

Imagine a leasing conversation where you say, “Not only is this a great apartment, but paying rent here can boost your credit score.” Tenants love it—73% report they’d pay on time more consistently if their payments were reported to credit bureaus. This isn’t hype; it’s backed by behavioral economics. Positive reinforcement turns rent into a credit-building asset, fostering loyalty and reducing evictions.

For diverse tenant bases, including young professionals, families, and gig workers, this levels the playing field. A 2025 study from the Urban Institute found that rent reporting increases credit visibility for underserved renters by up to 50%, helping them qualify for loans, utilities, and even future rentals.

The Stakes: Non-Compliance Risks and Hidden Costs

If HB 938 passes without your preparation, the fallout could sting. While specific penalties aren’t yet detailed in the bill text, similar laws in other states impose fines up to $2,500 per violation, plus tenant lawsuits for non-disclosure. More insidiously, ignoring the trend leaves you vulnerable:

• Competitive Disadvantage: In a market where 40% of millennials prioritize credit-building amenities (per Apartment List surveys), your listings could lag behind those flaunting “Credit-Building Rent Reporting Included.”
• Elevated Turnover and Delinquencies: Without the incentive, expect higher vacancy rates—up to 12% industry-wide for non-adaptive properties—and persistent late fees that eat into profits.
• Reputational Hits: Online reviews mentioning “no credit-building options” could deter prospects in an era of Zillow and Apartments.com dominance.

Proactive adoption flips the script. Properties using Credit Gnomes have seen delinquency rates drop by 25% on average, thanks to our dual positive/negative reporting that encourages accountability without the full sting of traditional credit dings.

Why Act Now? The Strategic Edge of Early Adoption

Missouri’s legislative session moves fast—HB 938 was introduced in January 2025 and could hit the governor’s desk by spring 2026. California’s landlords who delayed AB 2747 compliance faced rushed integrations and tenant pushback; don’t repeat their mistakes.

Early movers reap outsized rewards:

• Compliance Confidence: Lock in HB 938 readiness with Credit Gnomes’ turnkey setup, including audit-proof reporting.
• Revenue Streams: Charge the allowable $10 fee? That’s passive income—our clients average $5,000+ annually per 100 units.
• Retention Rocket Fuel: Tenants with improving credit stick around longer, slashing marketing costs by 15-20%.
• Market Differentiation: Stand out in tenant searches. “HB 938-Compliant Credit Building” is your new selling point.

Beyond Missouri, this positions you for national scalability. As more states eye rent reporting (Illinois and Pennsylvania are next in line), Credit Gnomes’ nationwide infrastructure keeps you agile.

Real-World Wins: How Credit Gnomes Powers Success

Take Sarah, a Kansas City property manager overseeing 200 units. Pre-Credit Gnomes, her delinquency rate hovered at 8%. After launching our program in 2024, it fell to 4%, and tenant satisfaction scores jumped 22%. “It’s not just compliance—it’s a game-changer for retention,” she says.

Or consider our work with multifamily REITs: Seamless API integrations mean zero added workload, while guarantor reporting for commercial leases adds another layer of financial oversight.

FAQs: Your HB 938 Quick Reference

Q: Does HB 938 require reporting late payments? A: No—it’s positive-only, focusing on on-time successes to build credit without added risk.

Q: What if my property is exempt? A: Still worth considering voluntarily. The benefits (like reduced turnover) apply regardless.

Q: How does Credit Gnomes fit in? A: We’re your all-in-one partner: Secure reporting to all three bureaus, tenant portals for easy opt-ins, and analytics to track ROI.

Q: What’s the cost to get started? A: Transparent pricing starts with a free consultation—visit creditgnomes.com to learn more.

The Road Ahead: Rent Reporting as the New Normal

HB 938 isn’t a flash in the pan; it’s a harbinger of equitable finance. Whether it passes this session or carries over, the momentum is undeniable. Forward-thinking leaders are already embedding rent reporting into their core strategies, turning a regulatory ripple into a wave of prosperity.

At Credit Gnomes, we’re committed to making this transition effortless. Our mission? Empower renters to build wealth through everyday payments while supercharging your rental business with data-driven insights and ancillary revenue.

Ready to future-proof your portfolio? Book a free consultation today with our experts. Let’s discuss how HB 938—and Credit Gnomes—can elevate your Missouri operations. Your tenants’ credit (and your profits) will thank you.

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By the Credit Gnomes Team | November 12, 2025