Pritzker could sign reusable tenant screening bill, further regulating landlords

[July 02, 2024]  By Catrina Petersen | The Center Square

(The Center Square) – Illinois could become the latest in a string of states to enact a measure seeking to save renters money on repeated application costs with House Bill 4926 on Gov. J.B. Pritzker's desk.

The measure would amend the Landlord and Tenant Act to allow a tenant to use what’s called a reusable tenant screening report when applying to rent properties. Proponents say the bill can save renters money by letting them get their own basic screening from a third party. The screening is good everywhere for up to 30 days.

State Sen. Jil Tracy, R-Quincy, expressed concern about the report being good for 30 days.

“This bill is another mandate and regulation of the landlord industry,” said Tracy. “A lot can happen in 30 days and the landlord wants to provide a safe environment for his tenants. There’s reasons they ask for a credit report and they often change. Landlords in Illinois are struggling, and calling them a ‘lord’ perhaps has connotations that imply they are much greater than the lessee.”

Tracy suggested renaming legislation that pertains to landlords and tenants to “lessor and lessee” to avoid negative connotations.

The screening must include income, rental history and any evictions. According to the proposed law, a reusable screening report does not have to include someone's criminal history. The report will be made available to landlords at no cost and will have to be prepared by a consumer credit reporting agency.

State Sen. Sara Feigenholtz, D-Chicago, carried the bill in the Senate.

“If we pass this law we’re going to be following about five to seven states,” said Feigenholtz. “This bill is really about somebody who is going to be moving into a new apartment and all opposition has been removed by the organization that represents the landlords. It keeps the cost down for very expensive credit applications … one after another and can really add up to several hundred dollars.”

The measure passed with 17 senators voting against and 40 voting in favor of the legislation.

Nothing in the proposed law prohibits a landlord from processing an application in addition to the reusable report, as long as the prospective tenant is not charged for it.

State Rep. Patrick Windhorst, R-Metropolis, questioned the bill’s sponsor, state Rep. Anna Moeller, D-Elgin, on the House floor.

“It appears from our analysis that one of the issues is that the fee goes to third party software that packages credit checks with background checks and there’s not currently a product available on the market that would separate those out,” said Windhorst.

Moeller explained she believes there are third-party screening organizations that can provide background checks and credit reports in one package that landlords will have access to when processing an application.

“This legislation is an effort to reduce cost to prospective tenants when they're in the market for an apartment or rental property,” said Moeller, who explained that the average cost per application fee is about $50 to $75.

Moeller said landlord groups provided language to ensure the screening report is more comprehensive than just the credit report. The House voted 69 in favor and 43 against.

California Gov. Gavin Newsom signed similar legislation two years ago.

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