For residential leases that begin on or after January 1, 2025, Landlords who own residential properties with more than fifteen (15) units (there must be at least 16 units) must now provide tenants with the option to have their rental payments reported to at least one (1) nationwide consumer reporting agency so that tenants can build their credit scores, subject to one exception.

• Exception for Smaller Properties

Exception:

This rent-reporting requirement can also apply to smaller properties—those with fifteen (15) or fewer units—if the landlord meets both of the following conditions:

1. The landlord owns more than one residential rental building; and
2. The landlord is structured as a real estate investment trust (REIT), corporation, or limited liability company (LLC) with at least one corporate member.

If both conditions are met, the landlord must still offer tenants the rent-reporting option, even if no individual property exceeds fifteen units.

(a) Who does this credit-reporting law apply to? 

This law applies to residential Leases that begin on or after January 1, 2025.

(b) When must this offer to report rent payments be communicated to tenants? 

The landlord must offer to report the tenant's rent payments to a credit reporting agency at the time that the lease agreement is executed (when the parties sign). LANDLORDS: If you have already executed the lease agreement without this language, you need to amend the lease and present it to your tenants NOW.

(c) Is the tenant required to have their rent payments reported? 

No, the tenant's participation is optional and tenants can choose to opt into or out of rent reporting at any time. However, if a tenant chooses to stop reporting their rent payments to a credit reporting agency, the tenant cannot resume reporting to the agency again for at least six (6) months). 

(d) Can a landlord charge the tenant a fee to report their rent payments?

Yes. For tenants that choose to have their rent payments reported to a national credit reporting agency, Landlords may charge tenants the lesser of $10.00 per month or the actual cost incurred by the landlord to provide the service. If there is no additional cost, the landlord should not charge a fee.  

(e) Can a tenant be evicted for failing to pay the reporting fee? 

No, a landlord cannot terminate a rental agreement due to the tenant's failure to pay the fee charged for reporting their rent payments to a credit agency.

(f) Can the landlord deduct a tenant's unpaid credit reporting fees from the tenant's security deposit? 

No, this fee cannot be deducted from the tenant's security deposit.

*TIP FOR LANDLORDS: Landlords should include a clause in their lease agreements which explain this offer to the tenant. Both parties should be required to initial this particular clause to ensure that the Tenant(s) were given explicit notice of this offer.  should be made at the time of the lease agreement and at least once annually thereafter. For existing leases as of January 1, 2025, the offer must be extended by March 1, 2025, and at least once annually thereafter.