Can landlords deny applicants with prior evictions?

Tenant Screening and Prior Evictions in Illinois: What Landlords Need to Know

When managing rental properties in Illinois, landlords often face the challenge of deciding whether to approve or deny prospective tenants with a history of prior evictions. Understanding the legal and practical considerations surrounding this issue is crucial for maintaining compliance and making informed screening decisions that protect your investment.

Can Illinois Landlords Deny Applicants Based on Prior Evictions?

In Illinois, landlords are permitted to deny rental applications based on prior evictions. An eviction record is generally considered part of an applicant’s rental history and can be used as a legitimate factor in the tenant screening process. However, this must be done carefully, in compliance with relevant laws and tenant screening best practices.

Key Points:

• Evictions are Public Records: Eviction judgments and filings are public in Illinois, so landlords can access this information during background or tenant screening.
• No Automatic Ban: While landlords can consider prior evictions, they are not required to automatically deny every applicant with one.
• Consider Context: Factors such as how recent the eviction was, the reason behind it, and an applicant’s overall rental and credit history can inform a balanced decision.

Legal Requirements and Restrictions in Illinois

While Illinois landlords have discretion to deny applicants with eviction histories, several state laws regulate how screening can be conducted:

1. The Illinois Residential Tenant Screening Act

This law governs the use of consumer reports (such as credit and background checks) for tenant screening, including use of eviction records.

• Permissible Screening Criteria: Landlords may consider eviction records when deciding on applications.
• Disclosure Requirements: If a landlord relies on a consumer report, including eviction history, to deny an applicant, the Illinois Residential Tenant Screening Act requires providing an “adverse action notice.” This notice:

- Must inform the applicant of the denial. - Must state that the decision was based on information from a consumer reporting agency. - Must provide the contact details of the agency supplying the report, so the applicant can dispute inaccuracies.

• Time Limits on Reporting: Consumer reporting agencies usually incorporate eviction data for up to seven years. Landlords should note how recent the evictions are when screening.

2. Fair Housing Act Compliance

Illinois landlords must comply with both the federal Fair Housing Act and any applicable Illinois Civil Rights laws, which prohibit discrimination based on race, color, national origin, religion, sex, familial status, disability, sexual orientation, and other protected classes.

• Avoid Discriminatory Practices: Using eviction history in a way that disproportionately excludes protected classes without valid justification could trigger claims of discrimination.
• Consider Individual Circumstances: For example, denying an applicant solely due to an eviction related to a disability accommodation request may violate fair housing laws.

3. Illinois Human Rights Act

This state law similarly prohibits housing discrimination and encourages landlords to apply tenant screening criteria uniformly.

Best Practices for Illinois Landlords Screening Applicants with Prior Evictions

To create effective, lawful, and fair tenant screening procedures, Illinois landlords should:

• Use a Consistent Screening Policy: Apply the same criteria to all applicants, including how eviction history impacts the decision.
• Request Rental History: Understand the circumstances behind prior evictions by contacting former landlords or reviewing court records.
• Evaluate Contextual Factors:

- Time elapsed since the eviction. - Whether the eviction was due to non-payment or lease violations. - Whether the applicant has since corrected financial or behavioral issues.

• Consider Supplemental Information: Credit reports, income verification, and references can help balance the picture.
• Provide Proper Notices: If denying based on a consumer report, comply with the Illinois Residential Tenant Screening Act to issue timely adverse action notices.
• Use Written Criteria: Draft and document tenant screening policies that outline how eviction histories are evaluated. Regularly review these policies to ensure compliance with current laws.
• Keep Records: Document all tenant screening decisions and communications to establish a clear record in case of disputes.

Practical Tips for Handling Applications with Prior Evictions

• Interview Applicants: Invite applicants to explain past evictions during the application process. Sometimes, a compelling explanation and evidence of rehabilitation can warrant approval.
• Consider Conditional Approvals: In some cases, landlords can mitigate risk with higher security deposits, co-signers, or shorter lease terms.
• Check Court Records Directly: When possible, verify eviction filings to confirm the accuracy of eviction history reports.
• Use Professional Screening Services: Many tenant screening companies are familiar with Illinois laws and can help landlords navigate screening complexities.

Conclusion

In Illinois, landlords can legally deny applicants with prior eviction records, but must do so in compliance with state disclosure requirements and anti-discrimination laws. Thoughtful screening that balances eviction history with other relevant factors—while maintaining uniform policies—allows landlords to make sound leasing decisions while minimizing legal risks. By following Illinois-specific requirements and best practices, landlords can protect their properties and promote fair housing opportunities.