AB 2747 Is Here—Is Your Lease Ready?
With AB 2747 now in effect, property owners and managers with 15 or more units must ensure their lease agreements include a clear offer of reporting on-time rent payments—or risk being out of compliance.
First, look for a reliable rent reporting provider to partner with. Then, your lease should be updated. Your lease language matters, and if you don’t structure it properly, you could end up with confused tenants, unnecessary disputes, or worse—noncompliance.
So, how do you get this right from day one? This guide breaks down exactly what to include in your lease agreements to ensure you’re fully compliant with AB 2747—without unnecessary headaches.
1. A Clear Statement of Offering Rent Reporting
The most critical part of your lease agreement under AB 2747 is the official offer to tenants to have their on-time rent payments reported to a credit bureau.
This should be direct and easy to understand—no legal jargon, no vague wording.
Example Lease Clause:
“As required by California AB 2747, you have the option to have your on-time rent payments reported to a major credit bureau. This can help you build your credit history and improve your financial standing. If you choose to participate, rent payments made on time will be submitted to [Credit Bureau(s)] through Sperlonga Data & Analytics. You may opt in or out at any time by submitting a written request to management. Once you opt out, you may only opt in again 6 months after you opted out.”
This statement does three important things:
- It explicitly states that tenants have the option to opt in.
- It outlines the potential benefit (credit building).
- It reassures tenants that they can opt in or out at any time.
Without this clear offer in writing, your lease agreement does not comply with AB 2747.
2. Opt-In & Opt-Out Process
AB 2747 requires that tenants be able to opt in and out at any time—so your lease must outline a simple, hassle-free process for them to do so.
Example Lease Clause:
“To participate in rent reporting, you must complete the Rent Reporting Election Form provided by management. You may opt in or out at any time by submitting a written request. Opting in allows us to report only on-time rent payments to [Credit Bureau(s)] through Sperlonga Data & Analytics. If you choose to opt out, your rent payments will no longer be reported, but previously reported payments will remain on your credit history. Once you opt out, you may only opt in again 6 months after you opted out.”
This clause does two things:
- It makes participation easy by ensuring that tenants know how to opt in or out.
- It reassures tenants that opting out won’t erase their past credit history.
Tenants don’t want hidden obligations—make the process transparent, and you’ll avoid unnecessary concerns.
3. Required Tenant Notification Language
AB 2747 mandates that landlords notify tenants about rent reporting at lease signing and once a year. Your lease should confirm that this notification will take place.
Example Lease Clause:
“Each year, you will receive written notification reminding you of your option to participate in rent reporting. This notification will be sent via [Email/Mail/Resident Portal].”
This ensures you meet the ongoing requirement and avoid issues where a tenant claims they were never informed.
At Sperlonga Data & Analytics, we provide turnkey solutions to automate your rent reporting, supply ready-to-use lease language, and ensure full compliance with AB 2747—so you don’t have to stress over the details.
Need help implementing AB 2747? Schedule a 15-minute call with here or send us an email at [email protected] — we’ll walk you through the simplest way to get started.