Starting July 1, 2025, California landlords who own or manage 15 or more units across all their properties—or are managing on behalf of an owner with 15+ units—will be required to report rent payment history to at least one of the three major credit bureaus (Equifax, Experian, or TransUnion). This new law, AB 2747, aims to improve credit access for renters by recognizing consistent, on-time rent payments.
🔍 What Does AB 2747 Require?
If the law applies to you, you must:
Report positive and negative rent payment history to at least one major credit bureau.
Notify tenants in writing about this reporting practice.
Include this information in lease agreements for new or renewing tenants.
Ensure that all tenants in the property are reported consistently.
🏘️ Who Must Comply?
This law affects:
Landlords with 15 or more residential units in California.
Property management companies acting on behalf of such landlords.
There are some exceptions, such as government-subsidized housing or properties where all tenants are protected by specific affordability covenants, but the vast majority of rental property owners and managers must prepare for compliance.
💳 Why It Matters
This is a game-changer for tenants who have historically struggled to build credit, even while making rent payments consistently. For landlords, it’s an opportunity to:
Encourage timely payments,
Provide added value to tenants, and
Stand out in a competitive rental market.
However, failure to comply can result in legal exposure and tenant complaints. It's crucial to stay ahead of this requirement.
🧾 How to Start Reporting Rent Payments
Choose a rent reporting platform that integrates with major bureaus.
Notify your tenants in writing as required.
Update your lease agreements to reflect the reporting policy.
Ensure accurate records of rent payments and missed payments.
Partner with a property management company (like us!) who handles compliance seamlessly.
💬 Final Thoughts
Wellspring Property Management is committed to helping landlords stay compliant while protecting their investments. If you're unsure how to start reporting rent or if this law applies to your properties, we can help guide you every step of the way.
Need help getting compliant before July 2025?
Contact us today to schedule a consultation.
