What AB 2747 Requires of Los Angeles Landlords

October 30, 2025

On September 19, 2024 California Governor Gavin Newsom signed into law Assembly Bill 2747.

The law requires residential landlords in California to offer tenants the option of reporting the tenants positive rental payment information to one of the nationwide consumer credit reporting agencies, such as Experian, TransUnion, and Equifax. This allows tenants to build credit and increase their credit scores by demonstrating on time payment history. Rent Reporting can also benefit the participating landlords by encouraging on-time payments and attracting responsible Tenants.

When Does the Law Take Effect?

For certain residential landlords and Property Managers leases entered into on April 1, 2025 or after must include an offer of Rent Reporting at the time of the lease agreement and at least once annually thereafter. For ongoing leases created before April 1, 2025, the offer of positive rental payment reporting must be made by April 1, 2025, and at least once a year going forward.

What Must be Included in the Rent Reporting Offer?

• The offer shall be delivered to the tenant by email or by first-class United States Mail. If the offer is made by mail the landlord must provide the tenant with a self-addressed, stamped envelope to return the signed offer.
• A statement that the Rent Reporting is optional.
• The cost charged to the tenant, if any.
• The names of each credit agency the payments will be reported to.
• Instructions on how the tenant may opt into Rent Reporting to the landlord by first-class mail or email.
• A statement that the tenant may opt in at any time.
• A statement that tenants may opt out at any time, but will not be able to opt back in for at least six months.
• Instructions on how to opt out.
• A signature area that the tenant shall sign and date to accept the Rent Reporting offer.

How Much Does Rent Reporting Cost? And Who Pays it?

If a tenant elects to have their monthly rent payments reported to a consumer credit bureau, the landlord may require that tenant to pay a fee of the actual cost to the landlord or $10 per month, whichever is less.

If a tenant fails to pay the fee:

• It is not cause for termination of the tenancy.
• The landlord cannot deduct the fee from the tenant's security deposit.
• The nonpayment of the fee shall not be reported to a consumer reporting agency.
• If the fee remains unpaid for 30 days, the landlord may stop reporting the tenant's rental payments, and the tenant is not eligible to opt back in for 6 months.

Does AB 2747 Apply to All California Landlords?

No. There are exemptions to AB 2747. It does not apply to, Assisted housing development (as defined in the Government Code) or for Landlords of residential rental building that contain 15 or fewer units unless both of the following apply:

• The landlord owns more than one residential rental building, regardless of the number of units in each.
• The landlord is a real estate investment trust, a corporation, or a limited liability company in which at least one member is a corporation.

Source:
https://california.public.law/codes/civil_code_section_1954.07

Do you still have questions or need help getting your apartments compliant with AB 2747 or any of the ever changing of Los Angeles and California housing laws?

Contact Silver Screen Properties today to schedule a free landlord compliance review to ensure your properties are operating in accordance with all state and local laws and see what our services can offer you.