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SB 3504

RENTAL PAYMENT INFO-REPORTING

104th Regular Session Introduced by Mike Porfirio and 1 co-sponsor

The bill requires landlords to offer tenants the option to report rental payments to nationwide credit bureaus, with written consent, clear fees, and annual/renewal opt-in protecti

Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · SB 3504

Overview

SB 3504, introduced in the 104th Illinois General Assembly by Sen. Mike Porfirio (Co-sponsors: Sen. Rachel Ventura), would amend the Landlord and Tenant Act to require landlords of residential rental units to offer tenants the option to have their rental payment information reported to nationwide consumer reporting agencies, under specific conditions and with defined protections for tenants.

Main purpose and intent

  • Establish an opt-in program for rental payment reporting to consumer reporting agencies (CRAs) for tenants.
  • Ensure landlords provide written notice and obtain tenant consent before reporting rental payment history.
  • Clarify fee structure, reporting scope, and tenant protections related to reporting and fees.
  • Create eligibility criteria to exclude certain small landlords, with specific ownership and corporate structure conditions.

Key provisions and changes

  • Reporting option:

    • Landlords must offer tenants the option to report rental payment information to at least one nationwide CRA (as defined by FCRA sections 603(p) or 603(f)) so long as the CRA resells or furnishes that information to a nationwide CRA.
    • “Rental payment information” means complete, timely rent payments.

  • Notice and consent:

    • Landlords must provide written notice of the offer and obtain written tenant authorization before reporting.
    • The notice must include: optionality of reporting, target CRAs, how late payments are defined (e.g., 30+ days), which payments are reported (timely/late/missed), any applicable fee, submission instructions, ability to opt in/out, and a signature line.

  • Timing of offer:

    • The option must be offered at lease inception and at least annually thereafter and with any lease renewal.
    • Delivery methods may include first-class mail, email, or the same method used for lease delivery.

  • Fee structure:

    • If a tenant elects to have reporting, landlords may charge a fee not to exceed actual cost to provide the service plus $5 per month.
    • Payment status of the fee is not to be reported to the CRA.
    • Nonpayment of the fee by the tenant:
    • Does not terminate the tenancy.
    • Cannot be deducted from the security deposit or rent.
    • If unpaid 30+ days, reporting may stop and the tenant cannot re-elect rent reporting for 6 months.

  • Exemptions:

    • Landlords of residential buildings with 15 or fewer dwelling units are exempt unless they own more than one residential rental building, and the landlord is a corporate entity, LLC with a corporate member, or a REIT (as described).

  • Opt-in/out mechanics:

    • A tenant who elects to report may later stop reporting by submitting a written request; once stopped, the tenant cannot re-elect reporting for at least 6 months.

  • Other tenant protections:

    • Deductions or withholdings allowed by law (e.g., repairs, withhold rent for lawful purposes) do not count as late payments.
    • If a tenant uses lawful rent-related remedies (e.g., repair-and-deduct), they must notify the landlord before rent is due.

Who and what would be affected

  • Affected parties:

    • Tenants in residential rental units whose landlords choose to offer reporting.
    • Landlords of residential properties (with fewer than 15 units exemption under certain ownership/corporate conditions).
    • Consumer reporting agencies that furnish/ resell rental payment history to nationwide CRAs.

  • Scope of impact:

    • Tenants: potential impact on credit reports and creditworthiness if they opt in, with a defined fee structure and opt-in/out protections.
    • Landlords: added administrative duties (notices, consent collection, fee administration) and potential financing considerations for the optional reporting service.

Procedural and timeline aspects

  • Status and timelines:

    • Introduced February 5, 2026; assigned to committees with Rule 2-10 deadlines (schedules noted in the action history).
    • The bill includes annual renewal timing and renewal-based offers as part of ongoing tenancy arrangements.

  • Compliance timeline:

    • If enacted, landlords would implement the notice and consent process at lease signing and at each renewal/annual interval.
    • The opt-in window remains open after initial offer, and opt-out decisions have a six-month non-reelectivity period.

Notable considerations

  • Privacy and consumer impact:
    • The bill formalizes a patient, opt-in approach to credit reporting of rent, aligning with standard credit reporting practices while providing tenant protections around consent and fee imposition.
  • Exemption nuances:
    • The small-landlord exemption is limited by ownership and corporate structure, leaving some multi-unit small landlords potentially subject to the requirement.

This summary presents the essential elements of SB 3504 as introduced, focusing on purpose, substantive provisions, affected parties, and procedural timelines.

Compiled from official sources — confirm details with the bill’s official record.

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