New Housing Law - AB 2747 Tenancy: Credit Reporting

Tenants who have paid their rent for years have not been able to benefit from making these timely payments month after month and ultimately, year after year. Furthermore, when tenants are seeking a place to rent, they are held to certain eligibility requirements. One of these requirements is having a good credit score. Tenants are even denied if they don’t meet a minimum credit score that is considered good or that demonstrates reliability. Yet, the tenants continue to pay rent promptly.

As of April 1, 2025, Assembly Bill 2747, gives tenants the opportunity to benefit from paying their monthly rent on time. This works by mandating landlords of residential real property to annually offer to report a tenant’s positive rental payment information to one nationwide consumer reporting agency. This will positively affect a tenant's credit score and ultimately have a positive impact on their overall financial well-being, as good credit is beneficial beyond just renting.

When offering positive rental payment reporting to a tenant, the landlord must provide the following information via first-class US mail or email: a statement that positive rental payment reporting is optional, information that identifies the consumer reporting agency that will be reported to, fee charged to the tenant if the landlord incurs a fee for this service, instructions on how to submit written election to the landlord via US mail or email, a statement letting the tenant know they can opt out of the positive rental payment reporting at any moment. If tenants opt out of positive rental reporting, they must wait 6 months before resuming participation.

In addition, it is important to note that the maximum amount a landlord can charge for this service is $10 unless the landlord incurs no fee for the service. Thus, if the landlord does not incur a fee, the landlord must offer the service to the tenant free of charge. Furthermore, if a tenant fails to pay the fee for this service, the landlord may not report this missed payment to the consumer reporting agency. The landlord may also not deduct this fee from the rent, deposit, or use this as a reason to evict a tenant. Instead, the landlord may stop the positive rental payment reporting if the fee remains unpaid for 30 or more days, and the tenant would not be eligible for this service for 6 months from the date of the missed payment. For further information regarding this law, contact CSA, your local fair housing agency.

CSA San Diego County is a fair housing nonprofit organization dedicated to the eradication of discrimination in housing. If you or someone you know has faced or is facing housing discrimination or would like to learn about fair housing rights, we encourage you to call CSA San Diego County. Our counselors are available to assist you via phone, email, or in person. You can contact us at (619) 444-5700, visit our website at www.c4sa.org, or visit our office at 327 Van Houten Avenue, El Cajon, CA 92020.