How to Run a Background Check for Illinois Rental Tenants
Running thorough background checks on rental applicants is one of the most important steps in the tenant screening process. In Illinois, landlords have both rights and responsibilities when it comes to screening tenants, and understanding both protects your investment and keeps you on the right side of fair housing law.
Here is a step-by-step guide to running background checks for Illinois rental tenants.
What a Background Check Should Cover
A comprehensive tenant background check in Illinois should include:
- Criminal history: Felony and misdemeanor convictions at the federal, state, and local level
- Eviction history: Prior eviction filings and judgments (critical for rental properties)
- Credit history: Payment history, collections, judgments, bankruptcies
- Identity verification: Confirm the applicant is who they say they are
- Sex offender registry: National and Illinois sex offender registries
Illinois Fair Chance Housing Considerations
Illinois and Cook County have enacted fair chance housing policies that restrict how landlords can use criminal records in housing decisions. Key rules:
- You must conduct an individualized assessment before denying based on criminal history in covered jurisdictions
- Arrests that did not result in convictions generally cannot be considered
If your property is in Chicago or Cook County, consult with a local real estate attorney or work with a licensed property manager who understands these rules before making any criminal-record-based denials.
How to Obtain a Background Check
You have two main options for conducting tenant background checks in Illinois:
Option 1: Use a Tenant Screening Service
Reputable tenant screening services that are compliant with FCRA (Fair Credit Reporting Act) include:
- TransUnion SmartMove (designed for landlords)
- RentPrep
- MyRental (backed by CoreLogic)
- AppFolio Tenant Screening (integrated into property management software)
Cost: $25-$75 per applicant, depending on the depth of the report.
Option 2: Work Through a Licensed Property Manager
Professional property management companies run background checks as part of their standard screening process, using enterprise-level screening tools that go beyond what most individual landlords can access. The screening is done correctly, the results are interpreted by experienced professionals, and the decisions are documented in a compliant, defensible way.
FCRA Compliance: What Every Illinois Landlord Must Know
The Fair Credit Reporting Act (FCRA) governs how consumer reports (including credit and background checks) can be used. Key requirements:
- If you deny an applicant based on information in a consumer report, you must provide an “adverse action notice” that tells them which CRA provided the report and their right to obtain a free copy
- Keep screening criteria consistent and documented across all applicants
Using a proper screening service typically automates FCRA compliance. Doing it yourself requires more careful process management.
Document Everything
Maintain a written record of your screening criteria, the results of each background check, and the reason for each acceptance or denial. This documentation protects you if an applicant files a fair housing complaint.
Professional Screening With M Property Group LLC
Tenant screening is one of the areas where professional property management adds the most value. M Property Group LLC runs comprehensive background checks on every applicant using enterprise screening tools, applies screening criteria consistently and in compliance with Illinois law, and maintains documentation that protects our property owners.
We manage hundreds of rental properties in the Chicago south suburbs. M Property Group LLC is a licensed Illinois real estate broker with 23+ years of experience. Call (708) 719-0977 or book a free consultation today.
This is general information, not legal advice.
