New law allows tenants to report on-time rent payments to help credit score

Published on

CALIFORNIA – Governor Gavin Newsom signed Assembly Bill 2747, September 19, that requires landlords to give tenants the option to report their on-time rent payments to a credit bureau agency. 

Many renters spend a majority of their income on rent and prioritize their rent payments over all other expenses each month – but their on-time rent payments are never reflected on their credit scores, even when their missed rent payments are,” said bill author Assemblymember Matt Haney’s (D-San Francisco) in a statement.

Haney goes on to say this is an unfair practice that is further pushing millions of renters into cycles of debt and poor financial health.

Tenants to pay $10 per month for credit reporting

According to the text, AB 2747 would require that for leases starting on or after April 1, 2025, landlords must offer tenants the option to report on-time rent payments when they sign the lease and at least once a year after that.

For leases active as of January 1, 2025, landlords must also offer tenants the option to report their on-time rent payments by April 1, 2025.

Landlords with 15 or fewer dwelling units and assisted housing developments are exempt from the law.

In addition, the bill would allow a landlord to charge a tenant who chooses to report on-time payments either $10 per month or the cost of providing the service, whichever is lower, unless the landlord doesn’t have any costs for offering this service.

An administrative and financial burden

The California Rental Housing Association says they oppose the additional burden they believe this will impose on landlords.

“… most rental housing providers in California cannot just provide rental payment data to one of the credit bureaus. To do so would require completion of a complicated application and approval process, which most rental property owners in California would not be able to undertake particularly when more than 80% of rental property owners in California are independent, “mom and pop” owners,” said the association.

They go on to say AB 2747 would be both an administrative and financial burden for rental housing providers.

RELATED: Law limiting security deposits goes into effect July 1

spot_img

Latest articles

San Bernardino County residents may see Covered California premiums rise by 12.5% in 2026

SAN BERNARDINO COUNTY – Covered California announced a preliminary 12.5% average rate hike for...

FTC sues popular California-based gym for blocking cancellations

CALIFORNIA – The Federal Trade Commission (FTC) announced August 20 that it sued LA...

Parents of missing 7-month-old Emmanuel Haro arrested for murder

UPDATE: San Bernardino County Sheriff released a statement on the arrest of Jake and...

Silicon Valley to Silicon Savannah: California builds climate and trade partnerships in Africa

CALIFORNIA – California Transportation Secretary Toks Omishakin recently led a state delegation to Kenya...

More like this

California home prices fall to $884,000 in July amid uneven market trends

CALIFORNIA – California’s housing market showed mixed results in July 2025, according to the...

California borrowers get refunds as lender pays $2.3 Million

CALIFORNIA – The California Department of Financial Protection and Innovation (DFPI) reached a $2.3...

New report links AI data centers to increase in California homeowners’ electricity bills

CALIFORNIA – A Realtor.com report, released on August 7, found that AI is driving...