Address Tenant Concerns About AB 2747 Rent Reporting
AB2747 is around the corner and California property managers are getting ready to offer tenants the option to report on-time rent payments to at least one nationwide credit bureau. While this is a valuable opportunity for renters to build credit, it also comes with questions from tenants who may not fully understand the process or its benefits.
As a landlord, clear communication is key to ensure tenants see rent reporting as a positive feature, not a burden. This guide will walk you through common tenant questions, how to explain the benefits, and best practices for handling objections.
Common Tenant Questions About Rent Reporting
1. What is rent reporting, and how does it work?
Rent reporting allows tenants to have their on-time rent payments recorded with major credit bureaus like Experian, TransUnion, and Equifax). Just like credit card or loan payments, consistent, on-time rent payments can help build a stronger credit history. But unlike credit card and loan payments, rent payments are not automatically included in your credit history unless you or your landlord start reporting.
2. Does rent reporting improve my credit score?
Yes! For tenants with little to no credit history, rent reporting can help establish credit. For those with existing credit, on-time rent payments can strengthen their score over time. It can increase However, the exact impact depends on individual credit history and other financial factors.
3. What happens if I pay late?
In most cases, only on-time rent payments are reported. However, tenants should always check their lease agreements or ask property managers if late payments are included in reporting.
4. Do I have to participate?
No, participation in rent reporting is completely optional under AB 2747. Tenants have the right to opt in or opt out at any time. But it is highly encouraged to start reporting your rent payments to build your credit.
5. Will rent reporting cost me anything?
While AB2747 allows landlords and property managers to charge up to $10 per month for reporting rent payments, we at our property only charge $__.
How to Explain the Benefits of Rent Reporting to Tenants
Even if tenants don’t initially see the value in rent reporting, helping them understand the long-term benefits can encourage participation. Here are some key points to emphasize:
- Builds Credit History – Many tenants, especially young renters or those without credit cards, struggle to build credit. Rent reporting provides an easy way to establish and grow a positive credit history.
- Helps with Future Financial Goals – A higher credit score can make it easier to qualify for mortgage, loans, credit cards, get better interest rates and even better rental opportunities. By reporting rent, it can increase your credit score by as much as 50 points in the first 90 days.
- No Debt or Interest Involved – Unlike credit cards or loans, rent reporting doesn’t require borrowing money to build your credit—it simply rewards responsible payment behavior.
- Easy and Automatic – Once enrolled, the process is seamless with no extra effort required from tenants.
Handling Tenant Objections & Concerns
Despite the benefits, some tenants may hesitate or raise objections. Here’s how to respond:
❌ “I don’t want my information shared with credit bureaus.”
✔️ Response: Rent reporting follows strict data security measures and only rent payment history is shared—no personal or sensitive financial details.
❌ “I don’t need to build credit right now.”
✔️ Response: Even if you’re not focused on credit today, having a strong credit history can benefit you in the future for car loans, mortgages, or job applications.
❌ “I’m worried about negative reporting.”
✔️ Response: As long as you consistently pay rent on time, as you do now, you don’t need to worry about negative reporting. Under AB2747, you have an option to stop or pause reporting and re-enroll after 6 months. We also understand that unexpected situations may arise. If you’re unable to pay on time, please reach out to our team proactively so we can arrange a suitable payment plan, so it won’t affect your credit score.
Best Practices for Landlords Communicating Rent Reporting
- Make It Easy to Understand – Provide simple, jargon-free explanations in lease agreements, emails, and FAQs.
- Use Multiple Communication Channels – Introduce rent reporting during lease signings, renewal periods, resident newsletters, and online portals. Under AB2747, you must make the offer and capture opt-ins and opt outs, via email or US-registered mail.
- Offer a No-Pressure Opt-In Process – Tenants should feel encouraged, not forced, to participate.
- Be Transparent About Fees – If there are any costs, disclose them clearly and upfront to prevent misunderstandings.
- Train Staff to Handle Questions – Make sure leasing agents and property managers are prepared with clear, consistent messaging about rent reporting.
AB 2747 brings new opportunities for tenants to use their rent payments to build credit, but clear communication is essential to ensure they see the benefits. By answering common questions, addressing concerns, and highlighting the advantages, landlords can encourage participation while fostering positive tenant relationships.
Want to simplify rent reporting for your properties? Schedule a call with us here or reach out to our team at [email protected].