Complying with Illinois tenant screening laws has become more important than ever in 2025. New regulations on screening fees and portable reports require landlords to adapt quickly. At the same time, federal rules under the FCRA and HUD guidance on criminal records set clear boundaries for fair housing practices. LeaseRunner’s article outlines the essential steps landlords must follow, ensuring a transparent process that balances compliance, tenant rights, and risk management.
Illinois Tenant Screening Laws Under Federal Regulations
Federal law plays a key role in shaping how Illinois tenant screening laws are applied. Landlords must follow nationwide standards while also respecting local rules. Two federal rules shape fair tenant screening. These rules tie directly to Illinois rental application laws. They guide landlords to make clear, fair, and consistent choices when reviewing applicants.
Fair Credit Reporting Act (FCRA)
The Fair Credit Reporting Act (FCRA) regulates how landlords use consumer reports in tenant screening. Its main purpose is to protect applicants’ privacy and ensure transparency. Under this act:
- Written consent is required before accessing credit reports or a tenant background check in Illinois.
- An Adverse Action Notice must be given if an application is denied based on the report findings.
- Landlords must use only accurate and relevant data when evaluating rental applications, aligning with both federal rules and lease laws in Illinois.
HUD Fair Housing Guidance on Criminal Records
HUD’s guidance adds another safeguard to prevent unfair treatment during tenant screening. Landlords must be careful when using criminal history to evaluate applicants. The rules emphasize:
- Avoiding blanket bans against individuals with criminal records under HUD criminal background check requirements.
- Considering recency, severity, and relevance of offenses to rental suitability, especially in the context of Illinois background check rules.
- Ensuring screening practices do not create disparate impact on protected classes under the Fair Housing Act.
By following these federal standards, landlords in Illinois can apply Illinois tenant screening laws fairly, reduce legal risk, and create a transparent process for all applicants.
State-Specific Tenant Screening Laws in Illinois
When navigating Illinois tenant screening laws, landlords must follow state and local rules. Two stand out. One is the new law on tenant screening reports, which limits application fees. The other is the Illinois Human Rights Act, which protects applicants from discrimination. These laws connect with broader rental application rules that define what information landlords may request during the application process.
New Rule: Acceptance of Portable Tenant Screening Reports
Illinois landlords must now accept a valid portable tenant screening report (PTSR) when:
- The Illinois PTSR is still valid within 30 days.
- It was paid for by the applicant and provided directly to the landlord or through a compliant platform.
- Access to the report is free for the landlord.
- It includes all criteria for tenant screening in Illinois, such as credit checks, eviction history, and proof of income.
- The applicant certifies that no material changes have occurred since the report was issued.
If these conditions are met, landlords cannot charge an extra application or screening fee. This rule is part of Public Act 103-0840 and takes effect January 1, 2025.
Illinois Human Rights Act
The Illinois Human Rights Act extends protections beyond federal law. Under this Act, landlords must avoid screening practices that treat applicants differently based on protected traits. These include race, color, religion, sex, national origin, disability, familial status, ancestry, age, military status, unfavorable military discharge, order of protection status, pregnancy, and source of income.
Complying with the IHRA is a central requirement of Illinois rental application laws. It ensures that every applicant is evaluated fairly and that landlords stay aligned with state law.
Allowable Tenant Screening Criteria in Illinois
When applying Illinois tenant screening laws, landlords must balance compliance with practical evaluation of applicants. Federal, state, and local rules set clear boundaries on what information can be used. Criteria must be neutral, consistently applied, and documented to protect both housing providers and renters. Many owners rely on a tenant screening report or a tenant screening checklist to keep the process clear and consistent.
Written Screening Policy Requirements for Landlords
Every landlord should maintain a written policy under Illinois tenant screening laws. This ensures fairness, consistency, and transparency. A proper policy should cover:
- Criteria used: credit, rental history, income, and permissible criminal records.
- Process followed: step-by-step outline that applies equally to all applicants.
- Notices provided: adverse action letters under the FCRA when applications are denied.
- Local compliance: Cook County requires a two-step process, starting with non-criminal factors before reviewing recent convictions.
Such policies help answer common applicant questions like “what do landlords look for in a background check?” and reduce disputes during the rental process.
Credit & Rental History
Credit reports and rental history may be used under Illinois tenant screening laws. Landlords should apply the same benchmarks to all applicants and disclose any minimum requirements.
Past landlords can be contacted for rental verification, confirming timely payments and lease compliance. If a credit or rental report leads to denial, the landlord must give an adverse action notice with details about the decision.
Income & Employment Verification
Under tenant screening laws, income must be verified to ensure rent affordability. Pay stubs, job offers, or benefit statements are acceptable proof. These checks are part of the requirements to rent a house in Illinois, and they apply whether the applicant pays from wages, benefits, or vouchers. Denying based on the type of lawful income, not the amount, violates the Illinois Human Rights Act.
Criminal History
Criminal background checks are sensitive under Illinois tenant screening laws. Federal and state rules require landlords to avoid blanket bans. Convictions must be reviewed for relevance and timing. In Cook County, the Just Housing Amendment allows only convictions from the past three years to be considered. Arrests and older records are excluded.
Many landlords use tenant screening services in Illinois to ensure compliance and keep decisions consistent. Landlords must also conduct an individualized assessment and provide written notice if an application is denied for criminal history.
How Much Landlords Can Charge Tenant Screening Fees
Under Illinois tenant screening laws, landlords may collect application or screening fees, but important limits apply. There is no fixed statewide cap.
However, from January 1, 2025, Public Act 103-0840 requires that fees be waived if an applicant provides a valid Portable Tenant Screening Report (PTSR). This update aligns with broader laws in the U.S. on consumer rights, ensuring fairness and reducing repeated costs during the rental process.
No Screening Fees for Applicants Using their PTSR
A reusable PTSR is considered valid if it meets all of the following:
- Issued within the past 30 days by a certified consumer credit reporting agency.
- Covers every element a landlord typically reviews, such as credit score, income verification, eviction records, or a rental house background check.
- Accessible free of charge for the landlord.
When these conditions are satisfied, landlords cannot charge applicants for a background check for renters in Illinois. This rule helps renters avoid duplicate expenses while keeping landlords compliant with state rules.
Local Rules in Cook County and Chicago
Local ordinances add further obligations:
- Cook County RTLO: Requires itemized receipts for move-in fees and proof of actual costs within 30 days. While it does not cap application fees, it enforces financial transparency for all rental requirements Illinois landlords must follow.
- Chicago RLTO: Requires written receipts for security deposits. Though not tied to application fees, landlords often align paperwork across all charges to stay consistent and compliant.
A Practical Guide to the Illinois Tenant Screening Process
Navigating the screening process in Illinois requires care and attention to detail. Each step must follow both federal standards and Illinois tenant screening laws to protect landlords and applicants. The guide below breaks the process into clear steps, making it easier to follow and apply in real rental situations.
Step 1: Collect Applications and Screening Fees
Begin with a comprehensive application from each tenant. Include contact details, job history, rental history, and references.
- Charge only a reasonable screening fee. If you are wondering how much is a background check for an apartment, the cost often ranges from $30–$50, depending on the service.
- If an applicant provides a valid portable report, no extra fee can be collected.
Step 2: Process Applications
Check identity and verify income. Contact past landlords to confirm rental behavior. Use the same checklist for every file. This ensures fairness and compliance with Illinois tenant screening laws. It is also the point where many property owners consider “how much rent should I charge” to balance tenant affordability and steady income.
Step 3: Run an Illinois Tenant Screening Report
Illinois allows Portable Tenant Screening Reports (PTSR) if they are less than 30 days old and meet state standards.
- Landlords must get written consent before accessing credit or background data.
- Portable reports help reduce costs and speed up the process. You can learn more with portable tenant screening services for tenants by LeaseRunner.
Step 4: Evaluate & Make the Final Decision
Review all reports carefully. Apply the same criteria to each file. Focus on income stability, credit score, and rental history. This consistency helps ensure compliance with Illinois tenant screening laws. Some landlords also review lease terms, such as the notice period, to ensure tenants understand obligations before signing.
Step 5: Issue Decision Notice
Send the result quickly. If you deny or change lease terms because of a report, provide an Adverse Action Notice. This written notice must explain the reason and identify the screening company, as required by the FCRA.
Tenant Rights During the Tenant Screening Process
Tenants in Illinois are protected by clear rules during the screening stage. These rights ensure that the process is fair, transparent, and consistent with Illinois tenant screening laws. Understanding these protections helps renters know what to expect and how to respond if problems arise.
Tenant Privacy Rights & Access to Screening Report
Applicants must give written consent before a landlord runs any check. If a consumer report is used, tenants have the right to request a copy. This allows them to review the details and confirm the accuracy of the information collected, including:
- Credit history
- Rental records
- Results from income verification and cash flow report checks.
Dispute Against Inaccurate Information
If a report includes mistakes, tenants can act quickly to protect themselves. Under the Fair Credit Reporting Act (FCRA):
- Tenants may file a dispute with the reporting agency.
- The agency must investigate and fix any false or unverifiable data within 30 days.
- A corrected report must be sent back once changes are complete.
- Applicants should review their tenant screening report regularly to avoid delay.
These safeguards make sure tenant screening laws are applied fairly.
Tenant Rights under the Cook County Just Housing Amendment
For rentals in Cook County, landlords face stricter rules. They can only review convictions from the past three years. If they plan to deny based on this history, they must:
- Provide a written notice explaining the reason.
- Allow the tenant to submit evidence of rehabilitation or other mitigating factors.
Anti-Discrimination under IHRA
The Illinois Human Rights Act (IHRA) bars discrimination during the tenant review process. Landlords cannot base decisions on protected traits such as race, religion, sex, disability, family status, or military service. Every applicant must be measured against the same standards to ensure compliance with both IHRA and Illinois tenant screening laws.
Best Practices for Illinois Landlords to Stay Compliant
Landlords must follow Illinois tenant screening laws closely when managing rental properties. Doing so helps avoid legal problems and ensures all applicants are treated fairly. The best practices below show how landlords can stay compliant and protect their rental business.
Use Written Rental Applications
Require all potential tenants to complete a formal rental application. This document should collect essential details such as current employment, rental history, and contact information. A uniform application process helps landlords stay consistent and supports compliance with tenant screening laws.
Obtain Applicant Consent Before Screening
Always secure written authorization before running tenant background screening reports. Illinois law requires landlords to inform tenants in writing if they plan to review a credit report, eviction records, or criminal history. This protects both the landlord and the applicant while ensuring adherence to state regulations.
Apply Consistent Screening Criteria
Landlords should create and use objective standards, such as a minimum credit score or income-to-rent ratio, when evaluating applicants. Consistency prevents discrimination and aligns with both state law and federal fair housing regulations.
Following Illinois tenant screening laws ensures decisions rely only on legal factors. This includes income verification and cash flow report checks to confirm that an applicant can afford rent.
Rely on Trusted Screening Services
Work with reliable screening providers to access accurate credit and eviction history reports. Choose services that meet FCRA requirements and safeguard data. Established online platforms help reduce errors and provide stronger legal protection.
Provide Proper Adverse Action Notices
If an applicant is denied based on information from a tenant screening report, landlords must deliver a written Adverse Action Notice. This notice should clearly state the reason for denial and include the screening company’s contact details. Providing this documentation is a key requirement under both Illinois tenant screening laws and federal statutes.
Keep Detailed Records of All Decisions
Maintain organized records of applications, consent forms, and screening results. Good recordkeeping demonstrates compliance if disputes occur. It also supports fairness, transparency, and accountability in the rental process.
Conclusions
With recent updates, Illinois tenant screening laws have introduced stricter rules for landlords and clearer protections for tenants. From fee limitations to federal fair housing standards, compliance now requires more attention than ever. This guide highlights what landlords must follow in 2025, helping property owners make fair, legal rental decisions while ensuring applicants are treated with transparency and respect throughout the screening process.
FAQs
1. What background checks can landlords run in Illinois?
Under Illinois tenant screening laws, landlords may run credit reports, eviction history, and criminal background checks. Written consent is required before ordering any tenant background screening. Landlords must also comply with federal Fair Housing laws and the Fair Credit Reporting Act (FCRA). These rules ensure fair treatment of tenants while protecting landlords from renting to unqualified applicants. Proper disclosure and consent forms are essential.
2. What are the rent control laws in Illinois?
Illinois does not have statewide rent control. Instead, the state enforces the Rent Control Preemption Act, which prevents cities or counties from adopting their own rent control ordinances. This means landlords can set rent freely, but they must comply with fair housing rules and lease agreements. Tenants are still protected by laws covering security deposits, lease disclosures, and eviction procedures under Illinois statutes.
3. How much can Illinois landlords charge for application fees?
Illinois law does not cap application fees. Landlords may charge reasonable fees to cover the cost of income verification, credit checks, or eviction history reviews. However, fees must reflect actual screening expenses and cannot be excessive. Providing receipts or a breakdown of costs can help landlords stay transparent and avoid disputes. Tenants should always receive clear notice about fees in advance.
