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AB 2747: California To Require Positive Credit Reporting for Timely Rent Payments
October 14th, 2024
Contributor: Justin A. Goodman
California now requires landlords to offer positive credit reporting to their tenants who make timely payments. AB 2747, sponsored by Assemblymember Matt Haney, is intended to help renters build credit, where their rent payments are commonly their largest financial obligation every month, but one for which they previously did not build stronger credit.
What is AB 2747?
Landlords will now have to offer their tenants positive credit reporting to a nationwide consumer reporting agency no later than April 1, 2025, and once a year thereafter. The offer must include the following information:
- A statement that reporting of the tenant’s positive rental payment information is optional;
- Identification of each consumer reporting agency to which positive rental payment information will be reported;
- The amount of any fee charged the landlord incurs to report the credit information (which the landlord can pass through to the tenant in an amount not to exceed $10/month);
- Instructions on how to submit the written election of positive rental payment information reporting to the landlord by first-class United States mail or email;
- A statement that the tenant may opt into positive rental payment information reporting at any time following the initial offer by the landlord;
- A statement that the tenant may elect to stop positive rental payment information reporting at any time, but that the tenant will not be able to resume positive rental payment information reporting for at least six months after the election to opt out;
- Instructions on how to opt out of positive rental payment information reporting;
- A signature block that the tenant shall date and sign in order to accept the offer of positive rental payment information reporting.
AB 2747 has no provision for reporting negative credit information. Though it does note certain justifiable reasons for a tenant refusing to timely pay rent. For instance, if a dwelling has habitability defects, there are circumstances where a tenant can withhold rent. AB 2747 is clear that it does not impair those rights and that rent is still “timely” even if withheld pursuant to those remedies.
Finally, AB 2747 does not apply to landlords who own a single building containing 15 or fewer units, unless the landlord is a real estate trust, corporation or LLC with a corporate member.
Contact a San Francisco Landlord Tenant Lawyer Today
For assistance with or questions about how AB 2747 might apply to your property, you may contact Justin A. Goodman at Zacks & Freedman, PC for guidance. Contact us at your convenience to request a consultation.
Neither this website nor this post are intended to create an attorney-client relationship.
Categories: Landlord/Tenant Issues