For years, tenants have faced a major financial gap. Despite making timely rent payments every month, these payments have not contributed to their credit history. Unlike mortgage payments, which help homeowners build their credit scores, rent payments have largely gone unrecognized by major credit bureaus.
California’s Assembly Bill 2747 (AB 2747) is set to change that. This new bill, enacted on September 19, 2024, mandates that landlords of residential properties with more than 15 units offer tenants the option to have their on-time rent payments reported to credit bureaus, such as TransUnion, Equifax, and Experian.
What do you need to do to comply with bill?
AB 2747 introduces a structured approach to rent reporting, ensuring that tenants have a clear opportunity to opt in while landlords maintain transparency in their implementation.
- Landlords must notify tenants about the rent reporting option at lease signing and at least once annually thereafter. For leases that are active as of January 1, 2025, landlords must provide this offer no later than April 1, 2025. Once tenants opt in, landlords must ensure that rent payments are accurately reported to at least one major credit bureau. This can be done by partnering with a third-party rent reporting service providers.
- Landlords should provide clear opt-in instructions to tenants, making it easy for them to participate. A simple, well-structured election form should be used to document tenant decisions and maintain compliance records.
- Tenants may opt in or out of rent reporting at any time by completing a written election form provided by the landlord. However, once opted out, they must wait at least six months before opting in again.
- Landlords may charge a fee for providing rent reporting services, but this fee should not be more than $10 per month or the actual cost incurred by the landlord. If there is no actual cost, no fee should be charged to tenants.
- AB 2747 applies to owners who:
- Have more than 15 units
- A trust, corporate, or LLC with more than one residential building
- Are NOT assisted housing
Why Landlords Should Embrace Rent Reporting
When tenants understand that their rent payments will impact their credit scores, they are more likely to prioritize timely payments, reducing late or missed rent. This shift can lead to more consistent cash flow for landlords and fewer instances of delinquency.
Rent reporting can also serve as a competitive advantage in the rental market. With increasing demand for rental properties, offering credit-building opportunities can help attract quality tenants who value financial growth. Properties that promote rent reporting stand out, making them more appealing to responsible renters who are looking for long-term housing stability.
Why should you report rent through Sperlonga Data & Analytics?
- Value for Money Reporting: We can report your tenant’s on-time rent payments to TransUnion, Experian and Equifax for as low as $2/month!
- Seamless Rent Reporting. We can effortlessly integrate our rent reporting software with your existing Property Management tool to ensure on-time and accurate reporting. If you are not using a management tool, don’t worry, our solution is flexible, and you can easily report recurring rent payments without spending more than 5 minutes each month!
- Roll-out with ease. We have ready to use tenant notification, opt-in templates and marketing materials that you can easily use to roll out this program.
- A Decade of Expertise, A Legacy of Trust. With over a decade of experience and hundreds of thousands of reported consumer payments, we’ve perfected the process—ensuring accuracy, compliance, and results you can rely on.
- Dedicated Consumer Support for Your Residents. Our expert consumer team is here to assist your tenants with any questions about their reported rent payments—ensuring a smooth experience for both you and your residents.
Schedule a 15-minute intro call here, or send us an email at [email protected] to get you started.