FAQs on Assembly Bill 2747 – Positive Rent Reporting

The following are questions we posed to the author’s office for Assembly Bill 2747 (2024) requiring positive rent reporting. Under Assembly Bill 2747, rental housing providers who own parcels with 16+ units (or corporate owners under specified circumstances) must comply with the requirements of California’s Assembly Bill 2747 (A.B. 2747) Positive Rent Payment Reporting regulations effective on Tuesday, April 1, 2025.

• Under A.B. 2747, generally any rental housing providers are now required to provide their renters with the opportunity to pay for (at the tenant’s expense) positive reporting of their on-time rent payments to one or more of the major credit agencies. This requirement generally applies to rental properties with 16+ units on a single parcel (however, A.B. 2747 may be applicable to properties with fewer than 16 units) in certain circumstances where two or more properties are owned by a corporation.
• Under A.B. 2747, rental housing providers must provide their existing tenants on or about Tuesday, April 1, 2025, or thereafter for new tenancies (and annually): (i) a notice of the availability of positive rent payment reporting, (ii) that positive reporting will be provided at the tenants’ expense, and (iii) information about the reporting services being utilized and cost.

We asked A.B. 2747’s author’s office to clarify the following questions that we had. Bear in mind that the following does not constitute legal advice and that you should speak to an attorney about your specific situation.

Answer: For renters who opt-in, there is no prohibition against reporting negative (late) rental payments provided positive rental payments are also reported. We found that some rental reporting service providers were unable to report only positive payments without reporting negative payments also.

In other words, may a housing provider offer a reporting service whereby, for example, a tenant pays rent through the service, tenant pays a fee directly to the service provider, and the same service provider also reports to credit bureaus on behalf of the tenant? 

 Answer: So long as the type of service provider being offered by the housing provider to the renter in order to report rental payments to credit bureaus does not exceed the maximum permitted cost of $10.00 per month, this type of self-rental reporting service would comply with A.B. 2747.

For example, some services charge an annual fee of $500.00, plus monthly service charges per unit.

 Answer: The author’s office did not provide specific guidance here but reiterated that so long as a tenant is not to be charged more than $10.00 per month. We have interpreted this to mean that a housing provider can merely recover the upfront fee paid by charging up to $10.00 per month until such time as both the up-front fee and per unit fee has been fully recovered. Alternatively, the housing provider may wish to amortize the cost of the up-front fee ratably over the course of a year or other chosen period so long as not more than $10.00 per month is charged to tenants.