Illinois Landlords: New Rental Fee Rules Start January 1, 2027
What changed
Starting January 1, 2027, Illinois landlords face new rules on what fees they can charge tenants and how those fees have to be disclosed. The law, House Bill 3564, was signed in June 2026 and amends the Illinois Landlord and Tenant Act. That makes it statewide, so it covers a rental house in Mackinaw or a fourplex in Morton the same as an apartment building in Chicago.
The good news: you don't have to rewrite leases that are already signed. The new rules apply to leases and renewals signed on or after January 1, 2027. With renewals for the new year about to go out, though, now is the time to get your forms in order.
Does it apply to you?
It applies to almost every residential landlord in Illinois. There is one exemption: a building with six or fewer units where the owner lives on site. Both parts have to be true. It is an owner-occupied exemption, not a small-landlord exemption.
| Your situation | Covered by the new law? |
|---|---|
| You live in one half of a duplex and rent the other half | No, exempt |
| You own a 4-unit building in town but live elsewhere | Yes |
| You rent out a single-family house you don't live in | Yes |
| You live in a 10-unit building you own | Yes, it has more than six units |
If you own several rentals, check each property on its own. Some may be covered and others exempt. The law covers residential leases, so a lease for a storefront or shop isn't affected.
Rule 1: Every required fee goes on page one
Every fee a tenant must pay, one-time or recurring, has to be listed on the first page of the lease. That includes pet fees, move-in fees, parking, trash, and anything else that isn't optional. A fee schedule buried in an addendum no longer counts.
The consequence is simple: if a fee isn't on page one, the tenant doesn't owe it.
Two more disclosure rules come with it:
- Listings and ads. Any ad that shows the rent must also disclose the required fees, or link clearly to them.
- Utilities. The listing and the lease must say which utilities are included in the rent and which the tenant pays. Spell it out utility by utility, for example water included, gas and electric paid by the tenant.
Fees also can't show up for the first time after an applicant has been approved. Everything has to be known up front.
Rule 2: Some fees are capped or banned outright
Some fees are now off limits no matter how clearly you disclose them. Others are still allowed as long as they're on page one.
| Fee | Status starting 1/1/2027 |
|---|---|
| Application or screening fee | Capped at $50, unless you can document a higher third-party screening cost and bill it with a receipt within 14 days |
| Lease renewal or modification fee (including adding or removing a roommate) | Banned |
| After-hours maintenance request fee | Banned |
| Fee for calling a maintenance hotline or contacting the landlord | Banned |
| Trip or travel charge for repairs | Banned |
| Routine maintenance and upkeep fee | Banned |
| Pest control fee when the tenant didn't cause the problem | Banned |
| Move-in or move-out walkthrough fee | Banned |
| Eviction notice or filing fee before a court order | Banned |
| Pet fees and pet rent | Allowed, if disclosed on page one |
| Non-refundable move-in fee | Allowed, if disclosed on page one |
| Security deposit | Allowed, if disclosed on page one (no new statewide cap) |
Renaming a banned fee doesn't work. The law looks at what a fee actually covers, not what you call it. A "convenience fee" that is really an after-hours call charge is still banned.
You can still recover real costs a tenant causes, such as repairing damage, through your normal chargeback or security deposit process.
Why it matters: tenants can sue
This law doesn't rely on a city inspector to enforce it. Tenants can sue the landlord directly. They can ask a court to stop the practice and recover their damages and their attorney's fees.
The attorney's fees piece is what makes a small fee worth suing over. A $50 dispute isn't worth a lawsuit on its own. It can be once the landlord may have to pay the tenant's lawyer.
The bigger risk is a mistake in your standard lease form. One improper fee in a template you use for every unit means the same violation in every lease you sign.
Your checklist before renewals go out
☐ Decide which of your properties are covered (see the exemption above).
☐ List every fee you charge today, one-time and recurring.
☐ Drop or restructure any fee on the banned list, including renewal fees.
☐ Check that your application fee is $50 or less, or document the higher screening cost.
☐ Move every required fee onto page one of your lease.
☐ Add a utility-by-utility statement to your lease and listings.
☐ Update online listings, rental ads, and what you or your manager tell prospects at showings.
☐ Use the updated forms for every lease and renewal signed on or after January 1, 2027.
Let us review your lease
A short lease review now costs far less than defending a claim later. We can check your lease form, application, and fee schedule against the new law and give you an updated version ready for January. Call either office to set it up.
McGrath Law Office, P.C.
Mackinaw Office: 113 S. Main St, PO Box 139, Mackinaw, IL 61755 | 309-359-3461
Morton Office: 1600 S. Fourth Ave, Suite 137, Morton, IL 61550 | 309-266-6211
email@mcgrathpc.com | mcgrathpc.com
This post is general information, not legal advice for your situation. Reading it does not create an attorney-client relationship.
