Effective April 1, 2025, California Assembly Bill 2747 (AB 2747) introduces a new requirement for many housing providers: the option for tenants to have their on-time rent payments reported to a credit bureau. While the law may seem simple on the surface, it has significant implications for both landlords and renters across the state.
In this post, we’ll break down what AB 2747 is, who it applies to, and what landlords need to do to stay compliant.
Table of Contents
What Is AB 2747?
AB 2747 is a California law aimed at helping tenants build credit by making on-time rent payments count toward their credit score. Starting April 1, 2025, many landlords must give tenants the option to report their on-time payments to at least one major credit bureau.
This shift is part of a larger effort by the state to promote financial inclusion and credit access—particularly for renters who may not have traditional credit histories.
Who Does AB 2747 Apply To?
It applies to:
- Rental properties with 16 or more units
- Corporate-owned properties with 15 or fewer units if the owner has more than one rental property
Exemptions include:
- Certain assisted housing developments already covered by similar federal or state rent reporting laws
- Individual landlords who own and operate only one rental property with 15 or fewer units
When Does It Go Into Effect?
The key date to remember is April 1, 2025.
- New tenants: Renters who sign a lease on or after April 1, 2025 must be given the option to enroll in rent reporting at the time the lease is signed.
- Existing tenants: If the tenant already lives in the unit, the landlord must provide the rent reporting option by April 1, 2025.
What Must Landlords Do?
If you’re a landlord affected by AB 2747, here’s what you need to do to comply:
- Provide tenants with a written offer to report on-time rent to at least one credit bureau.
- Clearly outline whether there’s any cost to the tenant (some services may charge a small monthly fee).
- Update lease agreements for new tenants to include the rent reporting option.
- Keep documentation showing that the offer was made, even if the tenant declines.
Why This Matters for Tenants
Benefits for tenants:
- Improve credit scores with on-time payments
- Build credit history for future loans or home purchases
- Gain greater financial independence
What This Means for Orange County Landlords
If you own rental properties in Orange County, particularly in cities like Anaheim, Irvine, or Santa Ana, and have 16+ units or multiple properties, this law likely affects you.
Good Life Property Management helps landlords navigate California’s evolving laws. We’ll ensure your leases are up-to-date, your tenants are properly notified, and your compliance is airtight.
What Happens If You Don’t Comply?
Final Thoughts
AB 2747 represents a shift in how California views the landlord-tenant relationship—from one focused solely on payments to one that supports tenants’ long-term financial well-being.
If you’re unsure whether AB 2747 applies to your properties or need help updating your lease agreements, reach out to Good Life Property Management today.
Hiring a Property Management Company
If you’re looking for a reliable property management company to help you rent your Orange County rental property and stay compliant with all the local, state, and federal laws and regulations, consider working with Good Life. We have over 10 years of experience in the property management industry and have managed over 1000+ properties. We make owning rental property easy.
Steve Welty
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