California Rent Reporting Law: What Tenants Need to Know

Starting April 1, 2025, a new California law (AB 2747) will require landlords to offer tenants the option to report positive rent payments to the credit bureaus. This is a big step forward for renters who want to build credit without taking on new debt. If you’re renting in California, here’s what you need to know.

When the Law Takes Effect and Who It Applies To

If you sign a new lease on or after April 1, 2025, your landlord must offer you the option to enroll in rent reporting at the time of signing and then once a year. For existing leases that began before January 1, 2025, landlords are required to make the offer by April 1, 2025, and annually after that.

The offer must be in writing—sent by email or mail—and must clearly explain how rent reporting works, any fees involved, and how to opt in or out. Fees are capped at $10 per month or the actual cost of the service.

What Happens If You Opt Out or Miss a Payment

If you decide not to participate, you won’t be able to re-enroll for six months. Likewise, if you stop paying the monthly fee for 30 days or more, your landlord may pause reporting, and you’ll need to wait six months to sign back up.

It’s also important to note that landlords cannot evict you for not paying the rent reporting fee, and they cannot take the fee out of your security deposit. The law only allows the reporting of full, on-time rent payments. If you legally withhold rent due to habitability issues or needed repairs, it will not count as a late payment.

Why Rent Reporting Matters for Tenants

Rent is often your largest monthly expense, but it typically doesn’t help your credit. This new law changes that. By reporting your rent, you can strengthen your credit profile, increase your score, and improve your chances of qualifying for loans, lower interest rates, and better rental terms.

How RentReporters Can Help

RentReporters makes it easy to take advantage of this opportunity. We work directly with landlords to verify and report rent payments to the major credit bureaus. Even if your landlord isn’t offering rent reporting under the new law, you can still enroll with RentReporters independently and start building credit based on your positive rent history.

Take Control of Your Credit

California’s rent reporting law is designed to give tenants more tools to succeed financially. If you’re renting, this is your chance to turn on-time rent payments into real credit-building power—and RentReporters is here to make that as easy as possible.

Disclaimer:

This post is for informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a qualified legal professional.