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HB 2597

An Act amending the act of April 6, 1951 (P.L.69, No.20), known as The Landlord and Tenant Act of 1951, in creation of leases, statute of frauds and mortgaging of leaseholds, further providing for leases for not more than three years and for leases for more than three years and providing for notice of building credit through rent reporting program for residential leases; and providing for reporting rent payment information to consumer reporting agency program.

2025-2026 Regular Session Introduced by Danilo Burgos and 9 co-sponsors

The bill creates an opt-in program for reporting tenants’ on-time rent payments to credit reporting agencies, allowing rent to build credit if tenants participate.

Referred to Commerce
0
WeVote Research Nonpartisan
Bill Summary · HB 2597

Overview

HB 2597 (Pennsylvania, 2025-2026) seeks to amend the Landlord and Tenant Act of 1951 to adjust rules for leases, clarify notices related to building credit through a rent reporting program for residential leases, and establish a framework for reporting rent payment information to consumer reporting agencies (CRAs). The bill introduces an opt-in rent reporting program for eligible tenants and requires landlords to offer participation, create standard forms, set fees, and outline withdrawal/removal procedures. It would take effect six months after enactment.

1) Purpose and Intent

  • Create a formal framework for reporting a tenant’s on-time rent payments to consumer reporting agencies, enabling tenants to build positive credit history.
  • Require landlords to notify tenants about building credit through rent reporting and provide an opt-in process.
  • Establish governance, definitions, and procedural requirements for implementing, managing, and evaluating the rent reporting program.
  • Preserve existing lease structures while clarifying how leases of different durations interact with the program and notices.

2) Key Provisions and Changes

  • Leases for Not More Than Three Years (Section 201):

    • Allows leasing of residential property for up to three years by oral or written contract.

  • Leases for More Than Three Years (Section 202):

    • Requires writing for leases exceeding three years.
    • If no writing, or if the lease is not properly executed, it reverts to a lease at will unless the tenancy becomes a recognized year-to-year tenancy after liability for rent is acknowledged.

  • New Article II-A: Reporting Rent Payment Information to Consumer Reporting Agency Program (Sections 201-A to 210-A):

    • Scope and Definitions (Sections 201-A, 202-A): Defines terms such as eligible tenant, landlord, dwelling unit, program, rent payment information, third-party vendor, and related concepts.
    • Establishment of Opt-In Program (Section 203-A):
    • Landlords must establish an opt-in program within six months of the effective date.
    • Landlords may submit tenant data to a CRA directly or via a third-party vendor.
    • Tenants receive program requirements and a standard form at lease inception; current tenants can request the form within five days of request.
    • Participation requires the tenant to be eligible and submit a written election.
    • Exceptions apply for landlords already offering rent reporting prior to the effective date or if the landlord discontinues an existing program.
    • Notice Requirements (Section 204-A):
    • Within 30 days of establishing the program, landlords must notify tenants in writing and post notices where rent is paid.
    • Offer to Participate (Section 205-A):
    • Landlords must offer participation to all eligible tenants.
    • Offers must include voluntary participation, how to participate, how to withdraw, the CRA name, any participation fee, where to submit elections, and consequences for nonpayment of fees.
    • Standard form must be attached to the offer.
    • Acceptance and Opt-In (Section 206-A):
    • Eligible tenants may opt in after notification; offers do not expire and do not need to be accepted immediately.
    • Opt-in cannot occur if the tenant is ineligible or owes past-due rent/fees.
    • Standard Form (Section 207-A):
    • AG’s Bureau of Consumer Protection develops a standard form outlining election to participate and disclosures, including consumer education and data rights.
    • Fees (Section 208-A):
    • Landlords may charge an eligible tenant a participation fee (up to the actual data submission cost or $5, whichever is less).
    • Nonpayment can result in removal from the program; fees cannot be deducted from security deposits and are treated as past-due debt.
    • Withdrawal, Removal, and Discontinuance (Section 209-A):
    • Tenants can withdraw at any time; withdrawal affects reporting in the following period.
    • Removal can occur for nonpayment or loss of eligibility, with potential one-year bar from rejoining after removal.
    • Landlords may discontinue the program with proper notice; fees remitted for unused/prepaid amounts.
    • Third-Party Vendor Contracts (Section 210-A):
    • Landlords may contract with third-party vendors for rent reporting.
    • Duties of Committee (Section 211-A):
    • Legislative committee must develop a data-review rubric, measure program effectiveness, request non-protected information for reporting, and issue a quadrennial public report on credit visibility and policy effects.

  • Implementation Timing (Section 4):

    • Act takes effect six months after enactment.

3) Who Would Be Affected

  • Eligible Tenants in residential leases for individual dwelling units.
  • Landlords or landlords’ agents owning or managing 15+ residential units (and ownership thresholds described for inclusion of units).
  • Third-party vendors contracted to manage rent reporting and data submission to CRAs.
  • Consumer reporting agencies that receive rent payment data (CRAs or resellers).

4) Procedural and Timeline Aspects

  • Six-month window for landlords to establish the opt-in rent reporting program after the act’s effective date.
  • Within 30 days of program establishment, landlords must post notices to tenants and on accessible websites.
  • Opt-in offers to all eligible tenants, with standard forms available and a process for requesting forms within five days.
  • Fees, withdrawal rights, and removal rules govern ongoing participation, with explicit rules on refunds and discontinuance.
  • A four-year statutory horizon for the Legislative Budget and Finance Committee to report on program impact.

5) Potential Impacts and Considerations

  • Positive credit-building opportunity for tenants who opt in and maintain on-time rent payments.
  • Administrative and cost considerations for landlords (fees, data submission, vendor arrangements).
  • Privacy and data-security considerations given sharing of rent payment data with CRAs.
  • Tenant rights and dispute rights under data reporting, including accuracy and the ability to dispute reported information.
  • Policy trade-offs between credit visibility and potential disadvantages for tenants who opt out or cannot participate due to fees or eligibility.

Note: The bill is currently referred to the House Committee on Commerce (as of the latest action). The final shape and status may change with amendments or committee action.

Compiled from official sources — confirm details with the bill’s official record.

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