Guide To Rental Applications in Illinois [+Free Template]

DISCLAIMER

This article provides general information and is not legal advice. For accuracy and specific guidance on landlord-tenant laws, consult an attorney before making any decisions or taking action.

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Landlords use rental application forms as a tool to assess potential tenants. This important document gathers vital information about an applicant's personal, residential, and financial history. This allows landlords to determine whether the applicant meets their screening criteria.

However, landlords should be aware of certain laws that govern rental applications in Illinois. These laws cover important aspects of rental applications like rental application fees, tenant rights, and the use of screening reports. Failure to adhere to these regulations can lead to legal repercussions. 

This article will provide comprehensive information that landlords need to know before creating an Illinois residential rental application. Additionally, we will offer useful resources and templates to assist you in navigating the application process effectively.

What is an Illinois Rental Application?

An Illinois rental application is an intake form that landlords use as part of tenant screening to evaluate potential tenants for lease agreements. Typically, a rental application form in Illinois gathers essential and current information about applicants and seeks their consent to verify their credit history.

The primary goal of a rental application in Illinois is to assess whether the applicant can afford the security deposit and monthly rent and to review their payment history with creditors. With this information, landlords can assess whether a prospective tenant meets the requirements to rent an apartment in Illinois. 

What To Include in a Rental Application

Before you create an Illinois residential rental application, it's crucial for landlords to understand the essential components they must include to ensure they can gather all necessary information. 

Below are some of the key components of an Illinois rental application. 

  • Applicant’s Personal Information: Begin by collecting essential personal details from the applicant. This should include their full name, current address, contact information (such as phone number and email), and proof of identification. Additionally, you may want to ask lifestyle questions, such as whether they have pets or smoke, as this can provide insight into their living habits.
  • Proof of Income: Requesting proof of income is vital to assess the applicant's financial stability and their ability to pay rent. Acceptable documents include recent pay stubs or W-2 forms.
  • Employment History: Gathering information about the applicant's employment history can further demonstrate their ability to maintain a steady income. A stable job often correlates with reliable rent payments.
  • Screening Reports: Screening reports include credit reports, background checks, and eviction histories. Reviewing these documents can help identify any potential red flags that warrant further discussion with the applicant.
  • References: Request references from previous landlords to gain insight into the applicant's rental history. Additionally, credit references can provide evidence of their track record for making timely payments.
  • Additional Applications: If your rental policy requires a guarantor or co-signer, be sure to include them in the application process as well. The same applies to any individuals planning to share the rental space as roommates; they should also submit their own applications. 

Related: A Guide To Rental Applications For Landlords [+Free Template]

Illinois Rental Application Laws And Requirements 

Below is an overview of some key rental application laws property owners should know while creating a rental application in Illinois.

Maximum Rental Application Fee in Illinois

In Illinois, there is no state-mandated limit on the rental application fee a landlord can charge. However, local municipalities may have their own regulations regarding these fees, so it's crucial for landlords to verify local laws. 

Security Deposit Regulations in Illinois

Illinois law does not impose a cap on security deposits, but local governments may establish their own restrictions. While security deposits in Illinois do not require a receipt, specific rules apply in Chicago. 

Landlords in Chicago must provide tenants with a receipt for any deposits received and are required to hold these funds in banks insured by the Illinois FDIC. Additionally, landlords must inform tenants about where their deposits are held.

Fair Housing Compliance

Landlords in Illinois are required to comply with both federal and state fair housing laws when processing an application to rent in Illinois. These laws are designed to prevent discrimination based on a range of protected characteristics, ensuring that all applicants are treated equitably.

For instance, the federal Fair Housing Act prohibits landlords from discriminating against applicants on the basis of race, color, sex (which includes pregnancy, sexual orientation, and gender identity), disability, religion, familial status, national origin, and citizenship status.

Moreover, the Illinois Human Rights Act expands upon these protections by including additional categories such as ancestry, age, order of protection status, military status, and pregnancy.  

Related: How to Legally Decline a Tenant: Setting Tenant Criteria

Required Disclosures in Illinois Rental Applications

In Illinois, there are only four specific situations that necessitate disclosures from landlords to tenants, with additional requirements for those operating in Chicago:

  • Lead Paint Hazards: For properties built before 1978, landlords must inform tenants about potential lead paint hazards by providing a pamphlet from the Department of Housing and Urban Development (HUD). They must also disclose any known lead testing reports, regardless of whether lead was detected.
  • Radon Disclosure: Landlords are required to provide tenants with the "Radon Guide for Tenants" pamphlet upon request. While landlords are not obligated to test for radon, if they do conduct tests and find hazardous levels, they must inform prospective tenants—specifically for units located below the third floor.
  • Utility Payments: If utilities are billed under the landlord's name but divided among tenants, this arrangement must be clearly stated in the lease agreement. The Tenant Utility Payment Disclosure Act mandates that landlords explain how utility costs are calculated and provide copies of utility bills upon tenant request.
  • Additional Utility Charges: Under the Rental Property Utility Service Act, if a tenant's utility bill includes charges for shared areas (like hallways or laundry facilities), this must also be disclosed in the lease agreement.

Failure to comply with these disclosure requirements could result in violations of consumer protection laws or serve as grounds for personal injury claims related to lead poisoning or radon exposure.

Specific Requirements for Chicago Landlords

In Chicago, landlords must include a summary of the Chicago Residential Landlord and Tenant Ordinance (RLTO) with each lease agreement and renewal. This requirement applies unless the property is an owner-occupied building with six or fewer units. 

Additionally, landlords must provide tenants with:

  • The "Preventing Bed Bug Infestations" brochure
  • A summary of security deposit interest rates
  • Information on Chicago recycling rules

If tenants are responsible for heating costs, landlords must disclose this responsibility along with the annual heating expenses from the previous year. Tenants should acknowledge receipt of these disclosures in writing.

Credit and Background Check Laws Illinois 

Here’s a summary of the key regulations and practices that landlords must adhere to when screening applicants.

  • Consent for Background Checks: Before conducting any background or credit checks, landlords must obtain a signed consent form from the applicant. This is crucial for accessing sensitive information such as credit reports and criminal records, in compliance with the Fair Credit Reporting Act (FCRA).
  • Application Fees: Illinois law does not impose a limit on the amount landlords can charge for non-refundable application fees. This fee typically covers the cost of processing the application, including running background checks. However, recent legislation (House Bill 4926) prohibits landlords from charging an application screening fee if the applicant provides a reusable tenant screening report prepared within the last 30 days.
  • Criminal Background Check: Only after passing pre-qualification can landlords conduct a criminal background check, considering only convictions from the past three years.
  • Use of Screening Services: If landlords choose to use third-party screening services, these services must be FCRA-certified to ensure compliance with federal regulations. Landlords must also be aware that while they can obtain their own screening reports, they cannot recoup these costs through application fees.

The easiest way to collect rental applications and run a comprehensive and legally compliant tenant screening report is to use a tenant screening service like Landlord Studio. Thoroughly assess a tenant's suitability with a full credit report, background check, eviction histories report and ID verification. Screening reports are free for landlords.

Learn more about tenant screening with Landlord Studio →

Verifying Employment and Income

In Illinois, landlords often require prospective tenants to provide proof of income as part of the rental application process. This step is crucial for landlords to determine whether applicants can consistently afford their rent.

Below is a comprehensive guide on how to verify income during the rental application process.

  • Request Recent Pay Stubs: Ask applicants to submit two to three recent pay stubs. These documents should clearly display the applicant’s name, their employer’s name, and year-to-date earnings. This information helps ensure that the applicant has a stable and reliable income.
  • Employment Documentation: For applicants starting a new job who may not have pay stubs yet, request an offer letter or employment confirmation. This document should include the applicant’s salary, be printed on the company’s letterhead, and feature the company's address.
  • Review Bank Statements: Request two recent bank statements to gain insight into the applicant’s monthly deposits. This can be particularly useful for individuals who do not have traditional pay stubs.
  • Tax Documents: Tax documents, such as W-2 forms for employees or 1099 forms for self-employed individuals, can provide a clear overview of an applicant's earned income for the previous year.
  • Invoices for Self-Employed Applicants: For self-employed individuals, ask for two to three recent invoices to assess their earnings over the past few months.
  • Proof of Additional Income: Consider other sources of income that applicants may have, such as housing vouchers, child support, alimony, Social Security benefits, Supplemental Security Income (SSI), or investment income. Request documentation that verifies these amounts to get a complete picture of their financial situation.

How To Collect Rental Applications in Illinois

Landlords in Illinois have two primary methods for collecting rental applications: using paper forms or online application platforms. Each method has its own advantages, making it essential to choose the one that best suits your needs.

Paper Forms vs. Online Forms

Paper Forms

Paper applications are a practical choice for applicants who may not have reliable internet access or who feel more comfortable with traditional methods.

 Many landlords also prefer this familiar format, as it allows for a straightforward interaction with potential tenants. These forms can easily be downloaded online as templates, enabling landlords to print them out for prospective renters.

Online Forms

Conversely, utilizing online rental application platforms can significantly enhance the application process in Illinois. This method often proves to be more efficient than paper forms, offering quicker turnaround times, better organization, and improved readability of applications.

One excellent example of property management software is Landlord Studio. This platform allows landlords to streamline the entire tenant selection process, from creating and sharing your rental listing to collecting and prescreening leads to managing online rental applications and running tenant screening reports. By combining each of these steps into a streamlined workflow, all managed from one place, landlords can dramatically reduce vacancy periods and have absolute confidence in their final tenant selection decision.

Create your free Landlord Studio account today to reduce costly vacancies and secure great tenants fast.

Final Words: Illinois Rental Application Laws

For landlords in Illinois, ensuring compliance with state and federal regulations regarding rental applications is crucial. Also staying updated on any legislative changes is equally important, as these laws can evolve over time.

To streamline the rental application process landlords can leverage property management tools like Landlord Studio. By combining rental listings and syndication with lead management and efficient tools for the collection and assessment of rental applications and tenant screening reports, landlords can minimize vacancies, avoid problem tenants, and reduce the risk of evictions all while ensuring compliance with relevant laws.

Create your free Landlord Studio account today for a simpler, smoother rental listing and application process.

Illinois Rental Application FAQs

What are the requirements for renting an apartment in Illinois?

If you're looking to rent an apartment in Illinois, there are a few key requirements you should be aware of. Typically, landlords will ask for proof of income, conduct a credit check, and in some cases, perform a background check. 

Additionally, it's common for landlords to request references from previous landlords or employers.

What new laws for landlords were introduced in Illinois in 2024?

In 2024, new legislation such as  HB4778, HB3062, and HB0367 was introduced that focuses on eviction procedures and enhances tenant protections. These laws are designed to create a more transparent and equitable process for evictions, ensuring that tenants' rights are upheld.

What actions are prohibited for landlords in Illinois?

In Illinois, landlords are prohibited from discriminating against tenants based on protected characteristics such as race, gender, or disability. They are also not allowed to retaliate against tenants who assert their rights or file complaints regarding their living conditions.

Is Illinois a Landlord-Friendly State?

Illinois is generally considered to have tenant-friendly policies. The state enforces strict regulations concerning security deposits, eviction processes, and the overall rights of renters. This framework aims to protect tenants while maintaining a fair rental market.