Positive Rental Payment History Reporting: New Requirements Starting April 1, 2025

Under a new California law (AB 2747), certain landlords must begin offering tenants the option to report their positive rental payment history to at least one major credit bureau. This is intended to help tenants build or improve their credit by receiving recognition for on-time rent payments—something that hasn’t historically contributed to a renter's credit score.

Who is Required to Comply?

This new requirement applies in two distinct scenarios:

• Owners of properties with 16 or more residential units are required to comply, regardless of their ownership structure.

• Owners of properties with 15 or fewer units must comply if the property is owned by a corporation, a real estate investment trust (REIT), or a limited liability company (LLC) where at least one of the members is a corporation—and the owner owns more than one residential rental property in total. This means even a small duplex or triplex could be covered if the owner is part of a larger corporate ownership structure.

What Must Landlords Do?

Landlords who fall under this law must:

• Offer tenants the opportunity to have their on-time rent payments reported to at least one consumer credit agency.

• Include the offer in rental agreements signed on or after April 1, 2025.

• Provide this offer in writing to all existing tenants by April 1, 2025.

While reporting rent payments is optional for tenants, the obligation to offer the option is mandatory for covered landlords.

Is There a Cost to Tenants?

Yes. Landlords may pass on the cost of rent reporting to the tenant, but the law limits what can be charged. The law states that the fee may not exceed the lesser of $10 per month or the actual cost incurred to provide the service.

However, the law does not specify whether the $10 cap applies per tenant or per unit. To avoid potential legal or compliance issues, organizations like the California Apartment Association recommend interpreting the fee cap as $10 per unit per month—regardless of how many tenants live there—until further guidance is issued by the state.

If you are using a third-party reporting service, you must also disclose this to tenants in writing.

What Counts as “Positive” Rental History?

Only on-time rent payments may be reported. Late payments or delinquencies cannot be reported under this law. This distinguishes the program from traditional credit reporting, where both positive and negative data are often included.

Why This Matters

Many tenants—especially younger renters, students, or those without credit cards—struggle to build credit. This new law aims to change that by turning rent into an asset for credit-building. However, it also creates a new compliance responsibility for certain landlords, especially those with corporate ownership or portfolios with multiple properties.

If you’re unsure whether your property is subject to this requirement, review your ownership structure and the number of residential rental properties you own. If you fall into either category, you’ll need to ensure proper notices are prepared, fee caps are followed, and the offer is made by the deadline.

Resources for Compliance

BPOA has created both a Notice for existing tenants and an Addendum for new leases to help members comply with this law. These documents are available in the Forms Library and are ready to be downloaded and customized as needed. Make sure to serve the notice to current tenants no later than April 1, 2025, and begin including the addendum in all new rental agreements entered into on or after that date.