Pay rent in California? It could help your creditworthiness now

If you are worried about your ability to maintain this consistent, punctual payments over a longer period of time, you should take this into account before making a decision regarding from 2747, said Leah Simon-Weisberg, legal director of the tenant Rights Group Alliance of Californian's for Community Empowerment (Acce).

“Are you ready to undertake in the long term not only to pay on time, but also to pay for this reporting?” she said. Simon-Weisberg has joined other housing uses to criticize from 2747 to cover the tenants themselves the costs for the transfer of payment information with loan offices.

“Tenants should not have to pay for credit reporting because they do not pay their credit card company for the same,” she said.

It is still unclear how loan offices will process the tenants' rental payments, she said. But she pushed those who Do Decide to pass on your information to receive the long term.

“Make a long -term commitment,” she said. “Because if you only report positive payments and then give nothing, [credit bureaus] will assume that it is negative. “

Who is freed from this new law?

Individual landlords who have a property with 15 or fewer units are excluded from this new requirement.

But if your landlord has 15 or fewer units than companies, LLC or real estate investment structures – and not as an individual – will have to offer tenants the opportunity to share punctual payments with loan offices.

So to give examples in the real world when you rent a room with a friend or family member and that is the only home you own, this law does not apply to your situation. However, if your landlord is a company that has three different residential buildings all over the city, you must follow from 2747.

What should tenants and landlords know about compliance with from 2747?

If you are a tenant …

If you decide that you Do You want your landlord to share your punctual rent payments to a loan office. You are expected to make you an additional 10 US every time You want your information to be released.

This fee is intended to cover the costs for the landlord in order to pass on this information to a loan office and should cover the costs of your time and the fees collected by the company. However, the fee cannot be more than 10 US dollars per month.

The tenant can decide when he shared his punctual rental payments and how often. Even if you pay your rent on time every month, you can tell your landlord that you should only report your payments in the first six months of the year – and you would only have to pay your landlord the fee of 10 US dollars for six months.

Your landlord cannot punish you for not paying the fee of 10 US dollars, and he cannot take it from your deposit or add to your rent. If a tenant does not pay the fee of $ 10, the landlord is not obliged to report his payment information this month – even if it is on time.

What if you want to stop your landlord shared your rent payments with a loan office? You can unsubscribe at any time, but the law requires you wait at least six months before you let your punctual payments share.

If you are a landlord …

If your tenant wants you to report your punctual payments to a loan office, you must provide you with a contract that determines:

• With which loan office you will pass on your information
• The monthly fee that you will calculate (the 10 US dollars cannot exceed)
• Instructions for deregistering in the future.

The California Apartment Association (CAA) offers its members sample versions of these contracts for both new tenants and for existing tenants.