Positive Rent Reporting Law Webinar

California has a new law called Assembly Bill 2747 (AB 2747) that helps renters build their credit history by reporting their on-time rent payments to credit bureaus. Here’s a simple breakdown:

What is AB 2747?

• AB 2747 is a law that requires landlords to offer tenants the option to have their positive (on-time) rent payments reported to at least one nationwide credit bureau. This can help tenants improve their credit scores. 

Who does this apply to?

• This law mainly applies to landlords of residential buildings with 16 or more units. 

• For buildings with 15 or fewer units, landlords are generally exempt unless they own multiple properties and meet specific conditions. 

When does it start?

• For leases signed on or after April 1, 2025, rental owners must offer this rent reporting option at the time of the lease agreement and at least once every year after that. 

• For leases that are already in place as of January 1, 2025, landlords need to make this offer by April 1, 2025, and then at least once every year. 

How does it work?

• Landlords can provide the offer to tenants either by first-class mail or email. 

• If a tenant chooses to have their rent payments reported, the landlord can charge a fee of up to $10 per month or the actual cost of the service, whichever is less. If there’s no cost to the landlord, they can’t charge the tenant. 

Can renters change their minds?

• Yes, renters can decide to stop the reporting by making a written request to their rental housing provider. However, after opting out, they must wait at least six months before they can opt back in.

This law is designed to help renters build a stronger credit history, which can be beneficial for future financial opportunities.