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Author: Mark Ainely | Partner GC Realty & Development & Co-Host Straight Up Chicago Investor Podcast

Tenant screening in Chicago isn’t just about running a credit report, it’s about playing defense in a game where the rules are stacked against landlords who get sloppy. I’ve leased thousands of units, managed over 6,000 residents, and seen the same screening red flags repeatedly. Some are obvious, some are subtle, but all of them can cost you real money if you miss them.

Let me walk you through the screening red flags that drive me crazy, and more importantly, how you as a Chicago landlord can handle them without losing sleep (or rent).

Operating Your Rentals Like a Business

First things first: you’ve got to run your rentals like a business. Every application, every showing, every lease, it’s all part of a system. If you’re winging it, you’re going to miss details that a professional property manager would catch in a heartbeat.

Here’s what that means in practice:

Have a defined screening process that’s the same for every applicant.
Communicate requirements upfront so you’re not wasting time on someone who doesn’t qualify.
Know the laws, especially the Cook County RTLO and Chicago’s RLTO. Compliance isn’t optional, and mistakes can get expensive.

The Red Flags That Drive Me Crazy

“I am not renting, I am living with friends or family.”
On the surface this sounds innocent, but it really means you don’t have a landlord reference to verify. For Chicago landlords, that’s tricky, you’ve lost one of your strongest vetting tools. If you get this answer, dig deeper. Ask for proof of residency (mail, ID, utility bills) and verify income even more carefully. Without a rental history, you need another way to measure reliability.
“I pay my current landlord cash.”
This one makes me nervous every time. Paying cash isn’t illegal, but it usually means no verifiable rental history. If they truly pay cash, ask for receipts or canceled checks. In Cook County, if you can’t prove consistent rent payments, you’re flying blind. Don’t accept “just trust me.”
“I had identity theft.”
Identity theft is real, but it’s also one of the most common excuses when someone doesn’t want you to run their credit. In Chicago, you can’t deny someone simply for having a blemish on their report, but you still need transparency. Ask for supporting documents, police reports, credit monitoring letters, and then rely heavily on income verification and landlord references. If they push back, that’s a flag.
“My job is gig work.”
Uber, DoorDash, freelance gigs, it’s income, but it’s unpredictable. The risk is cash flow instability. Instead of denying outright, require higher proof of income (like three to six months of consistent deposits) or a co-signer. Be consistent so you don’t trip Fair Housing issues.
“I was never evicted, that shouldn’t be on there.”
When an applicant disputes an eviction on their record, you need to verify. Sometimes databases get it wrong, but sometimes the applicant is flat-out lying. Cross-check through Cook County’s eviction court records. If they’re right, great. If they’re wrong, you just saved yourself months of legal headaches.
“Are you a smoker?”
This one is less about legality and more about property protection. Smoke damage costs thousands. Chicago landlords can set smoke-free policies, but you have to apply them equally. Put your rule in writing in the lease. If an applicant says they smoke and you don’t allow it, you’re in the clear to deny. Just be sure your policy is consistent across the board.
The Story That Doesn’t Add Up
When someone’s story feels rehearsed, it usually is. If payroll stubs don’t line up with deposit history, or if someone says they’re on direct deposit but somehow “don’t have a bank account,” that’s a giant flag. In Chicago, I’ve seen applicants use someone else’s entire story. When you ask questions, they get defensive, or worse, overly nice.
The Eviction Evasion
“Yeah, I don’t have landlord references because my last landlord sold the building.” Sure. Always cross-check tax records to confirm the landlord actually owned the building. If the applicant gives you a friend’s number pretending to be a landlord, you’ll catch it.

Scams to Watch Out For

Chicago landlords are a target because the market is strong and competition is tight. I’ve seen scams where applicants buy fake documents online for $500. On the surface, everything looks perfect, but the details give it away. Logos missing, mismatched formatting, or “paystubs” with zero math behind them.

Here’s the rule: if the story doesn’t add up, it probably isn’t true.

What Chicago Landlords Ask Me About Screening

Q&A: What Chicago Landlords Ask Me About Screening

Q: Should I accept an applicant with a bankruptcy on their record?
A: Bankruptcy by itself isn’t always a deal breaker. Look at the bigger picture, stable job now, clean rental history since the bankruptcy, and solid references. Sometimes it’s just a reset.

Q: How do I handle applicants who refuse to pay an application fee?
A: Don’t bend. A fee weeds out people who aren’t serious, and it’s a small price compared to the risk of taking on the wrong tenant.

Q: What if I only get applicants with subsidies?
A: That’s usually a pricing issue. Check comparables in your neighborhood and make small adjustments quickly. Our Free Rent Analysis can help you figure out the sweet spot.

Q: How do I legally deny someone without violating Fair Housing laws?
A: Stick to your written criteria. Apply it consistently. And review Fair Housing Best Practices so you don’t accidentally cross the line.

Q: What if I don’t have time to screen tenants myself?
A: Then don’t. Outsource it. We offer Tenant Placement Services that take the stress out of screening while keeping you compliant.

Q: Can I deny someone for having pets even if I listed “No Pets” in my ad?
A: Yes, but be careful. “No pets” is allowed, but you cannot deny service animals or emotional support animals (ESA). That’s a Fair Housing violation waiting to happen. Make sure you know the difference and verify properly.

Q: Do I really need to call every landlord reference?
A: Absolutely. And don’t just call the numbers on the application, cross-check ownership through county tax records. Too many applicants list a buddy as their “landlord.” Don’t fall for it.

Q: Should I allow co-signers if an applicant doesn’t qualify on income alone?
A: Sometimes. A strong co-signer can make the deal work, especially with students or young professionals. But if the tenant’s background screams red flags, no co-signer in the world will save you.

Q: How do I handle an applicant who wants to pay several months of rent upfront?
A: That’s a classic flag. Some bad tenants try to buy time by paying in advance because they know they won’t pay later. If the rest of the application doesn’t check out, don’t take the bait.

Q: Do I have to accept the first qualified applicant?
A: In Cook County, yes, you can’t “pick and choose” if multiple people qualify under your stated criteria. First qualified gets it, or you’re asking for a Fair Housing lawsuit.

Q: How do I know if someone is faking income?
A: Always verify with the employer directly. Call HR, don’t just take the letter. And look at bank statements for actual deposits. Paystubs alone can be bought online for $30.

Q: Should I trust social media when screening?
A: 100%. Social media is a goldmine. If the applicant says “no pets” but their Facebook has three pit bulls in the living room, you just found your truth. It’s not the only factor, but it can confirm your suspicions.

Q: How fast should I screen and decide?
A: Fast. In Chicago, good tenants won’t wait around while you “think about it.” Have a system, screen efficiently, and decide within 48–72 hours. Anything longer and you’ll lose them to the next landlord.

The Bottom Line

These tenant screening red flags drive me crazy because I’ve seen them burn landlords over and over. But if you put a system in place, know the laws, and act quickly when something doesn’t feel right, you’ll save yourself thousands in lost rent and legal battles.

Tenant screening is your first line of defense. Treat it like the business it is, and you’ll win more than you lose.

Who Is On Your Team?

We’ve shared a lot of information here on investing in real estate locally in Chicagoland. If you live outside the area, it may seem overwhelming for those wanting to invest in the Chicago market. But we just look at it as a team sport.

Who’s on your investing team? Do you even have a team? GC Realty & Development, LLC has a dedicated team of professionals willing to share decades of experience in all facets of real estate investment. We handle everything from brokerage, leasing, and property management. Whether you hire us or not, we’re happy to provide our resources and expertise.

What gets me up in the morning and keeps me going 12 hours a day is the ability to add value to local area investors in Chicago and beyond! Those who connect with me often hear me say that our goal is to bring value to everyone we come in contact with.

We hope that in return, they will one day hire us for our tenant placement or property management services, refer us to someone they know, or leave a review about our services. We would clearly love all three; however, we’re happy whenever we get the opportunity to help!

Reach out today!