It’s not unusual for tenants to spend 30% or more of their income on housing. Unfortunately, landlords don’t typically report rent payments to the credit bureaus, so renters lose out on a valuable chance to build credit. On the other hand, landlords who report rental payments often see an increase in on-time payments — saving time, money, and awkward conversations about being late.
California has led the way on this. In July 2021, the state enacted Senate Bill 1157, and has since expanded the requirement further. Related reading: Rent Reporting: Pros and Cons for Landlords and Tenants.
Quick Answer: Most landlords can’t report rent directly to the credit bureaus — TransUnion, for example, generally requires a minimum account volume. The workaround is a rent collection service that reports on your behalf. PayRent does this for free through RentCred™: after a tenant makes three on-time payments, their payment history is reported to all three bureaus (Experian, Equifax, TransUnion) at no cost to landlord or tenant.
California’s Rent Reporting Requirements
California SB 1157 requires operators of multi-family units in California that receive federal, state, or local subsidies to offer each resident in a subsidized unit the option of having rent payments reported to the major credit bureaus.
Written by Senator Steven Bradford, the bill was intended to help low-income renters establish credit history. It applies to landlords of assisted housing developments with more than 15 units, requiring rent to be reported to at least one national credit bureau. Any multi-family development that receives governmental assistance qualifies. Lease agreements signed after July 1, 2021 must include the offer to report; for leases already in effect, the offer had to be made by October 1, 2021. The required offer must include:
A statement explaining that reporting is optional
A list of each credit-reporting agency payments will be reported to
A statement that both good and bad payment history — including late or missed payments — will be reported
Disclosure of any fees charged for reporting
Instructions for submitting a written election of rent reporting by mail
A statement that the tenant may opt in at any time after the initial offer
A statement that the tenant may opt out at any time, but can’t resume reporting for at least six months after opting out
Instructions for opting out
A signature block for the tenant to accept the offer
When the offer is made, the landlord must provide a self-addressed, stamped envelope for the tenant’s written election. SB 1157 originally included a sunset date of July 1, 2025 — but SB 924 (Chapter 519, Statutes of 2024) removed that sunset, making the requirement permanent. The law allows landlords to report FICO 9, FICO 10, and VantageScore 3.0 and 4.0 credit scores.
As of April 1, 2025, a second law — AB 2747 (Civil Code §1954.07) — expanded this requirement well beyond subsidized housing. It applies to landlords of any rental property with 16 or more units, or 15 or fewer if the landlord is a corporation or REIT, regardless of subsidy status. If you fall under either law, note that AB 2747 may carry its own specific procedural requirements — confirm the exact disclosure process with an attorney rather than assuming the SB 1157 list above applies identically.
Base FICO Scores range from 300–850, with FICO’s industry-specific scores ranging 250–900. A score of at least 670 (FICO) or 700 (VantageScore) is generally considered good — qualifying consumers for better credit terms on cards, loans, and major purchases.
This is general information, not legal advice — confirm your specific obligations with a qualified attorney.
Costs Associated with Rental Reporting
If a renter opts in, landlords can charge them $10/month or the actual cost of reporting, whichever is less. If the fee goes unpaid, the landlord can’t use it as grounds for termination or deduct it from the security deposit — but if it remains unpaid for more than 30 days, the landlord can stop reporting, and the tenant won’t qualify again for at least six months. The renter can stop reporting at any time in writing.
Benefits of Rent Reporting for Tenants
Building a history of on-time payments makes tenants a more attractive candidate to future landlords and helps boost their credit score.
Benefits for Landlords
Reporting on-time payments helps build a positive, long-term relationship with tenants — and gives other landlords access to information that rarely shows up in a standard credit report. Less than 1% of credit reports contain any rental history at all.
How to Report Rent to All Three Credit Bureaus
1. Check if you qualify to report directly. The “big three” bureaus — Experian, Equifax, and TransUnion — generally only work directly with high-volume landlords. TransUnion, for example, is commonly cited as requiring at least 100 accounts before reporting tenant data directly. This specific figure isn’t independently confirmed — worth verifying with TransUnion directly if it matters for your content.
2. If you don’t qualify, sign up with a rent collection service that reports on your behalf. Landlords with smaller portfolios can use a service like PayRent that handles reporting automatically as part of rent collection.
3. Enable reporting through the platform. With PayRent, this happens automatically once a tenant makes three on-time payments through RentCred™.
4. Have the tenant opt in. The tenant adds their birthdate and Social Security number in their tenant portal; registration automatically enables reporting going forward.
5. Reporting continues automatically each month as long as the tenant remains opted in.
Building RentCred™
PayRent reports rent payments to all three credit bureaus at no additional cost to renters or landlords, through the RentCred™ program.
RentCred™ is a rewards program for renters that recognizes consistent on-time payment. After a renter makes three on-time payments through PayRent, credit reporting to Experian, Equifax, and TransUnion is automatically activated.
RentCred™ also partners with Livble to let eligible renters split their rent into 2, 3, or 4 installments across the month for a flat $30 fee. Livble pays the landlord the full rent amount upfront, so rent is never late, and the renter repays Livble on their own schedule. This is separate from credit reporting and doesn’t require any additional opt-in beyond what Livble’s eligibility check requires.
Frequently Asked Questions
Related reading: Rent Reporting: Pros and Cons for Landlords and Tenants
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