Relates to requirements when landlords offer tenants the option of rent reporting to a consumer reporting agency to boost such tenant's credit score.
S10477 would add a new section to New York’s Real Property Law governing rent reporting by residential landlords. The bill generally prohibits a landlord, lessor, sub-lessor, or grantor from reporting a tenant’s rental payment information to a nationwide consumer reporting agency unless the lease or rental contract already gave notice that reporting could occur. If negative rental information is reported, the landlord must give the tenant written notice within 30 days, including a summary of rights under the federal Fair Credit Reporting Act and New York’s consumer reporting laws.
The bill also creates a framework for optional positive rent reporting, allowing landlords to offer tenants the chance to have on-time rental payments reported to credit bureaus. That option must be disclosed at lease signing, annually, and at renewal, and the tenant must affirmatively opt in in writing. The notice must identify the reporting agencies, describe what information will be reported, explain the tenant’s ability to opt in or out, and include a signature block. Landlords may charge a fee for the service, capped at the lesser of actual cost or $5 per month, but nonpayment of that fee cannot be treated as a lease default, used against the security deposit, or reported to a consumer reporting agency.
The bill also protects tenants who later choose to stop positive reporting, requiring landlords to comply with a written request to end reporting and imposing a six-month waiting period before the tenant can opt back in. It further clarifies that tenants do not lose any rights under the Real Property Law by participating in rent reporting, and that lawful rent withholding or repair-and-deduct actions cannot be treated as late payments for reporting purposes if the tenant gives prior notice. The act would take effect 60 days after becoming law.
This bill would amend New York’s Real Property Law by adding a new rent-reporting section that regulates when rental payment data may be furnished to consumer reporting agencies and how tenants must be notified. It would create new disclosure, consent, and notice obligations for landlords, establish tenant opt-in and opt-out rights for positive reporting, cap related fees, and limit how unpaid fees and protected rent-withholding actions may be treated. The measure would affect residential landlords, tenants, and consumer reporting agencies, and would interact with federal Fair Credit Reporting Act requirements and state consumer reporting protections.
The bill’s stated purpose and caption suggest a generally supportive policy goal: helping tenants build credit through rent reporting while adding consumer protections. Even without recorded committee debate or votes in the provided materials, the structure of the bill indicates a balanced approach that encourages positive reporting but requires clear notice, affirmative consent, and tenant control. The overall sentiment appears favorable toward expanding credit-building opportunities for renters, with safeguards to prevent surprise reporting or misuse of fee nonpayment.
The main points of potential contention are the landlord compliance burdens and the limits placed on reporting practices. Landlords may object to the required notices, written election procedures, annual disclosures, opt-out rights, and the six-month waiting periods after opting out or missing fee payments. Tenants and consumer advocates are likely to support the bill’s protections against undisclosed negative reporting, the cap on fees, and the rule that protected rent deductions or withholding cannot be reported as late payments. The bill also draws a line between voluntary credit-building reporting and punitive reporting, which may be debated by stakeholders over administrative complexity and consumer benefit.