AB 2747 Imposes Rent Payment Reporting Requirement on Residential Landlords

Assembly Bill 2747 introduces new rent payment reporting requirements for residential landlords in California, aimed at helping tenants build credit history through their rental payments.

Who Must Comply

The new requirements apply to:

• Landlords with 15 or more residential rental units
• Property management companies managing 15+ units
• Corporate landlords regardless of unit count
• Real estate investment trusts (REITs) with residential properties

Reporting Requirements

Beginning July 1, 2025, covered landlords must:

• Report monthly rent payments to at least one major credit bureau
• Include both positive and negative payment history
• Provide tenant notification of reporting practices
• Maintain accurate records of all reported information

Tenant Rights

Tenants have the right to:

• Receive 30-day advance notice before reporting begins
• Dispute inaccurate payment information
• Request correction of reporting errors
• Opt-out of positive payment reporting (but not negative reporting)

Implementation Timeline

Compliance Steps for Landlords

To ensure compliance, landlords should:

• Identify which properties are subject to the requirements
• Select and contract with approved credit reporting agencies
• Update lease agreements to include reporting disclosures
• Implement systems for accurate payment tracking
• Train staff on new reporting procedures
• Establish dispute resolution processes

Penalties for Non-Compliance

Landlords who fail to comply may face:

• Civil penalties up to $1,000 per violation
• Tenant lawsuits for damages
• Attorney fees and court costs
• Potential class action exposure