New Bill Requires Landlords to Report On-Time Rent Payments to Credit Bureaus

In Sacramento, renters may soon see a positive change in their credit scores, thanks to Assembly Bill 2747. Proposed by Assemblymember Matt Haney (D-San Francisco), the bill has passed through the California State Legislature and is now on its way to Governor Gavin Newsom’s desk for approval. If signed into law, it will require landlords to offer tenants the option to report their on-time rent payments to credit bureau agencies.

Currently, renters face an unfair credit reporting system—missed rent payments are reported and negatively impact credit scores, but timely rent payments often go unreported. Haney highlights that many renters in California pay their rent on time, but their credit scores do not reflect their financial responsibility. AB 2747 aims to fix this by allowing tenants to opt into positive rent reporting, giving them an opportunity to improve their credit scores.

This bill applies to buildings with more than 15 units, and landlords may charge tenants a small fee of up to $10, or the actual cost of reporting, whichever is lower.

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