What IL Landlords Can and Can Not Do When Screening Tenants

 Posted on October 08, 2024 in Civil law

It can be difficult for landlords to keep up with the changing laws regarding best practices for screening tenant applicants and what is not allowed during the process. Screening prospective tenants is extremely important to ensure the selected tenants are reliable and responsible and to prevent tenant evictions.

There is more involved in tenant screening than a simple background check. Tenant screening involves many legal factors that are designed to protect prospective tenants as well as landlords. A landlord must understand local ordinances and fair housing laws and keep up with and understand any recent legislative changes. Speaking to a Naperville, IL tenant eviction attorney from Appelman Law LLC can be beneficial whether you are a new landlord or a seasoned landlord.

What Is Involved in a Tenant Screening to Evaluate Prospective Renters?

There are both accepted practices and legal requirements when you are screening tenants. The accepted practices include:

• Since landlords are technically "extending credit" to tenants, they are allowed to review a prospective tenant’s credit report to assess financial reliability. While you may not know the exact circumstances, a prospective tenant who has skipped out on rent payments before is statistically more likely to do so again.

• Background checks are a necessary part of screening a tenant to check for convictions related to property damage or violent crimes.

• Rental history is important, as it can help you see how the prospective tenant has behaved in other rental situations. Contact prior landlords to ask about general conduct, whether there were any lease violations and the tenant's payment history.  

What Legislation in Illinois Could Affect Tenant Screening?

The Fair Tenant Screening Act (HB4778) is a significant development in tenant screening laws that strives to regulate the screening process to avoid discriminatory practices.  The U.S. Department of Housing and Urban Development (HUD) provides regular updates regarding tenant screening practices, particularly as they apply to fair housing compliance and non-discriminatory practices. The Fair Housing Act and state and local fair housing laws also prohibit discrimination.

Avoiding Fair Housing Violations When Creating Tenant Screening Policies

Tenant screening is the best defense against problem tenants. Unfortunately, the process can also expose landlords to major liability if Fair Housing Laws are not carefully followed. Lack of knowledge of these rules is not a defense to discrimination. Federal fair housing laws protect renters against discrimination based on race, color, sex, religion, disability, familial status, and national origin. 

Depending on the location of your property, state and local jurisdictions may also prohibit discrimination based on citizenship, age, veteran status, genetic makeup, sexual orientation, gender identity or expression, criminal history, and source of income. Effective yet legal screening criteria must only include the following:

• Landlord references

• Criminal background

• Eviction history

• Creditworthiness

• Income and employment verification

Income verification can include pay stubs or a recent W-2 or 1099.  For those who are self-employed or those who work on commission, bank statements may be requested to show a history of regular deposits. A call to the current employer generally verifies current work status and general income. Job stability is important; there should be no large, unexplainable gaps in employment. Eviction status is also important. Some research indicates that tenants with a prior eviction are three times as likely to be evicted again.

Contact a DuPage County Landlord Eviction Lawyer

Landlords never hope to evict a tenant, but in some cases, it can be necessary. Proper tenant screening practices can substantially reduce the likelihood of an eviction. If you have questions regarding tenant evictions, attorney Brett A. Appelman can help. When you choose an experienced Naperville, IL landlord eviction lawyer from Appelman Law LLC, you can rest easy, knowing your decisions will not cause you any legal trouble down the road. To schedule a free consultation, call 630-717-7801 today.