California Requires Rent Payments Reported to Credit Bureaus

In 2024, US landlords are facing significant challenges, including rising operational costs and stricter tenant protections, with maintenance costs increasing by 8% and property taxes by 7%. At the same time, technology, particularly AI solutions, is emerging as a means to streamline property management and enhance tenant satisfaction. In India, RentenPe is launching a Rent Credit Score and Residence Card to benefit tenants by recognizing their rent payment history, a first in the country, as the rental market evolves. Meanwhile, California has enacted a new law allowing tenants in multi-family housing to opt in for their on-time rent payments to be reported to credit bureaus, potentially improving their credit scores. This legislation aims to provide fair recognition of rent payments, which have historically not contributed positively to credit ratings. Both initiatives reflect a growing recognition of the importance of rental payments in the financial landscape, addressing disparities in credit access for renters.