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Illinois Rental Law Changes for 2026 - What Chicagoland Landlords Need to Know

Sync Properties LLCLast Updated: 5 min read

Three laws passed in 2025 reshape how Illinois landlords write leases, collect fees, and handle evictions starting in 2026. Two took effect January 1 and a third kicks in July 1 — and penalties for non-compliance range from $100 to $2,000 per violationILGA. If you manage rental property anywhere in the Chicagoland area, here's exactly what changed and what you need to do about it.

This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.

The Safer Homes Act: New Lease Disclosure Starting January 1, 2026

Every written residential lease signed on or after January 1, 2026 must include the state's Summary of Rights for Safer Homes Act as the very first page. This isn't optional — it's a requirement under Public Act 103-1031Public Act 103-1031, and it applies to both new leases and renewals.

What the Summary Covers

The required document outlines tenant protections for victims of domestic or sexual violence, including:

  • Early lease termination without penalty when facing a threat of domestic or sexual violence
  • Lock changes within 48 hours of a written request with documentation — and if the landlord doesn't act within 48 hours, the tenant can change the locks themselves
  • Protection from eviction based solely on incidents of domestic or sexual violence
  • Anti-discrimination provisions preventing landlords from denying housing to victims

The Illinois Department of Human Rights provides the official summary documentIL DHR in a translatable format that landlords must attach to leases.

What You Need to Do

  1. Download the official summary from the Illinois Department of Human Rights
  2. Attach it as the first page of every new or renewed written lease
  3. Obtain each tenant's signature acknowledging receipt on every page of the summary
  4. Keep signed copies in your records

Penalties for Non-Compliance

A landlord proven to have failed to include the summary faces liability for the greater of the tenant's actual damages (up to $2,000) or $100Public Act 103-1031. That's per lease — for a landlord with 10 units turning over this year, non-compliance could mean up to $20,000 in exposure.

If you're working with a professional property manager, they should already be incorporating this into every lease. At Sync Properties, we updated all lease templates before the January 1 deadline.

House Bill 3564: Fee Disclosure and Restrictions Starting July 1, 2026

This is the bigger change for most Chicagoland landlords. House Bill 3564HB 3564 — often called the "junk fee" bill — takes effect July 1, 2026 and restricts what fees landlords can charge and how they must be disclosed.

Fee Disclosure Requirements

All non-optional fees must appear on the first page of the lease, disclosed alongside the total rent amount. This includes:

  • Application fees
  • Move-in or move-out fees
  • Pet fees or deposits
  • Parking fees
  • Any other recurring or one-time charges

If a fee isn't listed on the first page of the lease, the tenant isn't liable for it. Period. Landlords must also disclose whether utilities are included in rent in any lease agreement or unit listing.

Fees That Are Now Prohibited or Capped

Fee TypeNew Rule (Effective July 1, 2026)
Application / background check feeCapped at $50 unless actual third-party cost is higher (documentation required within 14 days)
Lease renewal feeProhibited
After-hours maintenance feeProhibited
Pest removal fee (tenant not at fault)Prohibited
Security deposit + move-in feeCannot charge both on the same lease
Fee installment surchargeProhibited — tenants can pay fees in installments without added cost

What This Means for Your Bottom Line

If you've been charging $75 application fees, $200 lease renewal fees, or separate move-in fees on top of a security deposit, those revenue streams go away on July 1.

The installment provision is worth noting too. Tenants now have the right to pay any permissible fees in installments, and you can't charge interest or penalties for choosing that option.

Landlords also cannot simply rename a fee to get around these rules. The law specifically states that renaming a fee or charge to avoid the Act's restrictions is prohibited.

For property owners evaluating management options, our pricing page details exactly which fees are included — no hidden charges.

House Bill 3566: Minors Cannot Be Named in Eviction Actions

This one is straightforward but carries serious penalties. As of January 1, 2026, landlords are strictly prohibited from listing anyone under 18 as a defendant in eviction proceedingsHB 3566.

Why This Matters

Previously, some eviction filings named all occupants of a unit — including children. Under HB 3566, doing so triggers:

  • A $1,000 statutory penalty per violationHB 3566
  • Actual damages and attorney fees awarded to the tenant
  • Potential immediate dismissal of the eviction case

A dismissed case means starting the entire eviction process over, adding weeks or months of delay and significant additional legal costs.

Best Practice

Review your eviction procedures and make sure your attorney knows about this change. Only name adult tenants and occupants on the lease as defendants. If you're handling evictions in suburbs like Evanston, Oak Park, or Naperville — where local ordinances add additional tenant protections — getting this wrong can compound your liability.

Criminal Trespass Clarification: Senate Bill 1563

Senate Bill 1563SB 1563 provides welcome clarity for landlords dealing with unauthorized occupants. The law confirms that law enforcement can remove trespassers independently of the civil eviction process.

This means if someone is occupying your property without any lease or legal right, you don't necessarily have to go through the full eviction timeline. Police can act on criminal trespass, separate from any landlord-tenant proceedings.

This distinction matters in the Chicago suburbs where unauthorized occupancy has been a growing concern. However, the line between "unauthorized occupant" and "tenant" can be legally complex — when in doubt, consult an attorney before involving law enforcement.

Compliance Checklist for Chicagoland Landlords

Here's a practical timeline to make sure you're covered:

Already Effective (January 1, 2026)

  • Safer Homes Act summary attached as page one of all new and renewed leases
  • Tenant signatures obtained on each page of the summary
  • Eviction filings reviewed — no minors named as defendants
  • Eviction attorney briefed on HB 3566 requirements

Before July 1, 2026

  • Audit all current fees against HB 3564 prohibited list
  • Update lease templates to list all non-optional fees on page one
  • Remove prohibited fees: lease renewal, after-hours maintenance, pest removal (tenant not at fault)
  • Cap application fees at $50 (or document higher third-party costs)
  • Stop charging both security deposit and move-in fee
  • Add utility inclusion disclosure to lease and listings
  • Set up installment payment option for permissible fees

Ongoing

  • Review lease templates with an attorney at least annually
  • Monitor Illinois General Assembly for additional mid-year changes
  • Document all fee structures in writing

How a Property Manager Helps With Compliance

Tracking law changes across dozens of Illinois municipalities is a full-time job. Between state-level laws, Cook County ordinances, and suburb-specific rules in places like Skokie or Schaumburg, the compliance landscape shifts constantly.

A professional management company handles this by:

  • Updating lease templates as laws change
  • Training staff on new disclosure requirements
  • Auditing fee structures for compliance before deadlines
  • Managing eviction procedures within current legal requirements
  • Keeping documentation that protects you if a tenant files a complaint

If you're managing properties yourself and want to understand the full cost picture, our rental calculator can help you evaluate whether professional management makes financial sense given the time you're spending on compliance.

What to Watch for the Rest of 2026

The Illinois General Assembly continues to consider additional tenant protection measures. Landlords should monitor:

  • Further fee regulation — additional municipalities may adopt local fee restrictions that go beyond HB 3564
  • Right-to-counsel expansion — proposals to provide free legal representation to tenants facing eviction in additional Illinois counties
  • Climate-related requirements — energy disclosure and weatherization mandates being discussed for rental properties

The Chicagoland Apartment Association and Illinois REALTORS both publish regular legislative updates that are worth following.

Staying ahead of these changes is the difference between a smooth-running rental business and expensive legal surprises. Whether you manage your own properties or work with a team like Sync Properties, the key is updating your processes before deadlines — not after a tenant files a complaint.

Sources

  1. Illinois General Assembly — Public Act 103-1031 (Safer Homes Act)
  2. Illinois Department of Human Rights — Summary of Rights for Safer Homes Act
  3. Illinois General Assembly — House Bill 3564 (Fee Disclosure and Restrictions)
  4. Illinois General Assembly — House Bill 3566 (Minors in Eviction Proceedings)
  5. Illinois General Assembly — Senate Bill 1563 (Criminal Trespass Clarification)
  6. Illinois Legal Aid Online — Chicago RLTO Overview

Frequently Asked Questions

What new lease requirements do Illinois landlords have in 2026?
Starting January 1, 2026, every written residential lease must include the Summary of Rights for Safer Homes Act as its first page, signed by each tenant. Landlords who fail to comply face penalties up to $2,000 per lease.
What fees can Illinois landlords no longer charge in 2026?
After July 1, 2026, landlords cannot charge application fees above $50 unless third-party costs exceed that amount, cannot charge lease renewal fees, after-hours maintenance fees, or both a security deposit and move-in fee on the same lease.
Can Illinois landlords name minors in eviction lawsuits?
No. As of January 1, 2026, House Bill 3566 prohibits listing anyone under 18 as a defendant in eviction proceedings. Violations carry a $1,000 penalty plus actual damages and attorney fees, and the case may be dismissed.
How much can landlords charge for rental application fees in Illinois?
Under HB 3564, application fees are capped at $50 starting July 1, 2026. Landlords may charge more only if actual third-party screening costs exceed $50 and they provide documentation within 14 days.

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