Assembly Bill 2747, signed on September 19, means renters now have the option to request that their landlord report positive rental payment information to at least one nationwide credit bureau. It only applies to buildings with 15 units or more, and small landlords and assisted housing developments are exempt.
The bill is likely to impact millions, given that in 2022, nearly 17 million residents of the Golden State were tenants, according to a California non-profit. According to the U.S. Census Bureau, renters make up a much larger share of households in California—44 percent—than anywhere else in the U.S. except New York, where 46 percent rent their homes.
From April 1, 2025 onwards, landlords must include this option within their lease agreement. It must be offered by the landlord at the time of signing the lease and then once every year thereafter.
For leases already in effect by January 1, 2025, landlords must offer this service no later than April 1, 2025, and continue to do so at least once every year.
The legislation also permits landlords to charge a fee of ten dollars or the actual cost for providing the service, whichever is lower, from each renter who chooses to participate, unless there is no cost for reporting. Renters who opt in are free to opt out by making a written request, but cannot opt back in for another six months. AOA has low-cost property management software that can report those rental payments to TransUnion and do a whole lot more.