California Law Rewards Renters for Timely Payments

California Governor Gavin Newsom has signed Assembly Bill 2747, allowing renters in multi-family housing with 15 or more units to report their on-time rent payments to credit bureaus starting April 2025. This initiative aims to enhance renters' credit scores by reflecting positive payment histories, addressing the existing imbalance where only late payments are reported. While the bill is expected to benefit millions of tenants in California, it has drawn criticism from advocates who argue it excludes renters in smaller complexes and could inadvertently harm those opting into the reporting system. Landlords can charge a fee for the reporting service, and renters can choose to opt-out but face restrictions on rejoining. This law intends to help renters improve their creditworthiness, which is crucial for securing loans and home purchases. Critics emphasize the need for broader protections for all renters, regardless of property size.