Pennsylvania House Bill HB2498

Pennsylvania 2023-2024 Regular Session

• Introduced: 7/23/24
• Refer: 7/23/24

Caption

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.

Impact

The bill is expected to have a significant impact on both tenants and landlords. For tenants, the ability to report rent payments positively can enhance their credit scores and facilitate better access to loans and credit. This could be especially beneficial for low-income individuals who regularly pay their rent but are unable to build a robust credit profile due to other financial limitations. On the other hand, landlords will need to adjust their operational practices to incorporate this reporting mechanism and may incur costs related to managing the program, including potential fees associated with third-party vendors who may assist with such reporting.

Summary

House Bill 2498 aims to amend the Landlord and Tenant Act of 1951 by introducing provisions for a Rent Reporting Program that will help tenants build their credit based on timely rent payments. The bill mandates landlords to offer eligible tenants the option of having their rent payment information reported to consumer reporting agencies. This initiative seeks to improve the financial visibility of tenants, especially those who may have limited credit histories, thereby promoting greater access to credit and financial services.

Sentiment

The sentiment surrounding HB 2498 appears to be generally positive with respect to its potential benefits for tenants. Advocates argue that it represents a progressive step in addressing credit inequality and providing financial empowerment to renters. However, some concerns have been raised regarding the operational responsibilities placed on landlords and the potential for confusion among tenants regarding their rights and obligations under this new program.

Contention

Notable points of contention in discussions around the bill include the feasibility of implementation by landlords, particularly small property owners, who may find the administrative burden challenging. Additionally, there are concerns about the potential financial implications, including the fees that could be assessed to tenants who choose to opt into the program. Critics have called for safeguards to ensure that participation remains accessible and does not inadvertently penalize tenants who struggle with additional costs.