.svg)
Big changes are coming for many property owners in California. AB 2747, which became effective on January 1, 2025, with key requirements beginning April 1, 2025, requires covered landlords to offer tenants the option to have their positive rental payment information reported to at least one qualifying consumer reporting agency.
For tenants, that can create a new opportunity to build credit through on-time rent payments. For landlords, it introduces new notice, election, and compliance requirements that should be reviewed carefully.
What Does AB 2747 Require?
Here is what covered landlords need to know:
- For leases entered into on or after April 1, 2025, the offer must be made at lease signing and at least once annually thereafter.
- For leases already outstanding as of January 1, 2025, the offer must be made no later than April 1, 2025, and at least once annually thereafter.
- The offer must include a written election form with required disclosures, including that reporting is optional, which consumer reporting agency or agencies will receive the information, any fee charged, and how the tenant can opt in or opt out.
- If a tenant opts in, the landlord must report the tenant’s positive rental payment information to at least one qualifying consumer reporting agency.
- A tenant may later opt out, but cannot elect reporting again for at least six months after stopping.
- A landlord may charge the lesser of $10 per month or the landlord’s actual cost to provide the service. If the landlord incurs no actual cost, no fee may be charged.
It is especially important to note that AB 2747 is a positive-only reporting law. Under the statute, positive rental payment information means complete, timely payments of rent and does not include late or incomplete payments
Who Does the Law Apply To?
AB 2747 does not simply apply to every landlord with 15 or more units in every circumstance. The law does not apply to landlords of residential rental buildings with 15 or fewer dwelling units, unless specific ownership conditions are met, and it also does not apply to assisted housing developments, which are addressed separately under existing law.
For smaller buildings, the exemption can disappear if the landlord owns more than one residential rental building and is a REIT, corporation, or certain LLC structures involving a corporation.
How Will This Impact Landlords?
While the law may help renters build credit through on-time rent payments, it also means landlords need to update their compliance processes.
- Administrative changes: landlords need systems for notices, tenant elections, fee handling, and reporting workflows.
- Clear tenant communication: landlords need to explain that reporting is optional and provide the disclosures required by the statute.
- Fee compliance: any tenant charge must stay within the legal cap, and if the landlord has no actual reporting cost, no fee can be charged.
Handling unpaid reporting fees: nonpayment of the reporting fee cannot be reported to a credit bureau, cannot be used as a basis to terminate the tenancy, and cannot be deducted from the security deposit. If the fee remains unpaid for 30 days or more, the landlord may stop reporting and the tenant may not elect reporting again for six months from the date the fee first became due.
Why Was This Law Created?
AB 2747 builds on earlier California efforts around rental payment reporting. Existing law already required landlords of certain assisted housing developments to offer tenants the option to have rental payments reported to at least one consumer reporting agency. AB 2747 expands a version of that framework to additional residential landlords covered by the new statute.
The policy idea behind the law is straightforward: rent is one of the biggest recurring household expenses for many renters, and on-time payment history can help support credit building when it is reported.
What Should Landlords Do Now?
If you may be covered by AB 2747, now is the time to prepare:
- Review whether your portfolio falls within the statute’s scope and exceptions.
- Evaluate rent reporting vendors and confirm whether they support positive-only reporting, required notices, and compliant fee handling.
- Update lease and annual notice processes so tenants receive the required written offer and election materials.
- Train property teams to answer tenant questions about opt-in, opt-out, fees, and reporting timelines.
Esusu supports positive-only reporting, reporting to all three major credit bureaus - Equifax, Experian, and TransUnion - and includes a renter-paid Core membership option priced at $10/month.
For more details on AB 2747, visit Esusu’s AB 2747 page.
Disclaimer: Esusu is not a law firm and is not authorized to perform services performed by an attorney. Esusu provides general resources to clients preparing their own documents and compliance materials. Esusu is not liable for any failure by clients to comply with AB 2747 or any other law.