By Daniel Bornstein, Esq.

Starting in April of 2025, landlords with more than 15 units must offer their tenants the ability to report timely rent payments to at least one nationwide consumer reporting agency to potentially amplify their credit score.

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We can count on one hand the number of state lawmakers who are renters, and the sponsor of this bill, Assemblyman Matt Haney, is one of them. He leads the California Renters’ Caucus which fights for the rights of tenants and was the chief architect of AB2747.

The agenda of this Caucus has raised several concerns among housing providers, but this bill we can live with.

Effective April 1, 2025, landlords must offer a credit reporting option to new tenants when signing a lease and to current tenants by the same date. This offer must be extended at least once a year moving forward.

It seems fair that since credit scores are designed to reflect the good and bad of a person’s financial history, a tenant should be rewarded for paying rent by having their credit score boosted. The landlord is allowed to collect a fee of $10 or the actual cost of rent reporting, whichever is less, from the tenant. 

Although this law creates another administrative burden, it can also help to attract and retain tenants who will timely pay their rent. We do know that someone who wants their credit elevated is going to be a good tenant. We can draw a parallel with those tenants who seek renters insurance. They care about the unit and likewise, if a tenant cares about preserving and increasing their credit score, they will likely be responsible members of the rental community.

Daniel Bornstein, Esq. is the founder of Bornstein Law. He can be reached at daniel@bornstein.law

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