Starting January 1, 2027, a new Illinois law will change how residential landlords disclose rental fees and charge tenants for certain services. Under Public Act 104-0479, landlords covered by the law must disclose mandatory rental fees more clearly and comply with new restrictions on application fees, maintenance charges, and other costs associated with renting a home.

For landlords and residential property managers, these changes make it important to review lease agreements, rental listings, application procedures, and existing fee policies before the effective date.

Understanding the new requirements can help property owners prepare for the transition, improve transparency with prospective tenants, and reduce the risk of disputes over rental charges.

What Is Illinois’ New Rental Fee Transparency Law?

Illinois’ new rental fee transparency law was enacted through House Bill 3564 and is codified in Section 35 of the Illinois Landlord and Tenant Act, 765 ILCS 705/35.

The law is designed to make the cost of renting a residential property clearer before a tenant enters into a lease. It requires landlords to disclose non-optional fees and whether utilities are included in the rent. It also prohibits certain fees that landlords might otherwise charge during the application process or tenancy.

The law takes effect on January 1, 2027, and generally applies to residential lease agreements entered into on or after that date, subject to the statutory exception for certain owner-occupied properties.

Landlords should review the official text of 765 ILCS 705/35 before updating their rental policies.

Which Rental Fees Must Illinois Landlords Disclose?

One of the central requirements of the new law is the disclosure of all non-optional rental fees, whether they are charged once or on a recurring basis.

These disclosures must appear in two places:

• Rental listings: Mandatory fees must be disclosed clearly and conspicuously in the property listing or through an accompanying link provided at the time of the listing.
• The first page of the lease: All non-optional fees must be explicitly listed on the first page of the residential lease agreement.

The law also requires landlords to disclose whether utilities are included in the rent in the listing or lease disclosure.

For example, if a tenant is required to pay a monthly administrative fee, the landlord should ensure that the fee is disclosed in the required manner rather than introducing it unexpectedly after the tenant has reviewed the advertised rental price.

The purpose is to help prospective tenants understand the mandatory costs associated with renting a property before committing to a lease.

What Happens if a Mandatory Fee Is Missing From the Lease?

For covered leases, a tenant is not liable for a non-optional fee that is not explicitly included on the first page of the lease.

This makes lease preparation particularly important. Landlords should review their current templates to ensure that mandatory charges are identified clearly and appear in the required location.

Simply mentioning a fee elsewhere in a lengthy agreement may not satisfy the specific first-page disclosure requirement.

Which Rental Fees Will Be Prohibited Under the New Law?

Section 35 also prohibits landlords from requiring tenants to pay certain fees or fines. These restrictions address charges associated with applications, maintenance, lease changes, and other routine aspects of renting a property.

1. Excessive Rental Application and Screening Fees

The law generally prohibits rental application fees exceeding $50, including fees for background checks.

An exception allows a landlord to charge more than $50 for a third-party background check when the actual third-party service costs more than $50. In that situation, the landlord must pay the cost upfront and bill the applicant within 14 days, providing receipts from the third-party provider.

If the landlord fails to provide the bill and receipts within that period, the fee is waived. The law also restricts using this fee as the basis for an eviction action during the first year of a lease.

Landlords should therefore review their screening procedures, invoices, and administrative charges to ensure that fees comply with the statutory requirements.

2. Lease Modification and Renewal Fees

The law prohibits fees or fines charged for modifying or renewing a residential lease agreement.

Property managers should review their renewal procedures and avoid automatically carrying forward charges that are prohibited under the new requirements.

3. Fees for Maintenance Requests

Landlords may not charge tenants fees or fines for certain maintenance-related activities, including:

• Requesting maintenance service after normal business hours.
• Contacting the property owner or manager about maintenance, service requests, or lease-related questions.
• Travel required to perform necessary maintenance or safety repairs.
• Calling a maintenance hotline for maintenance requests, lease questions, or other matters directly related to the tenancy.
• Routine maintenance and upkeep of the rental unit.

These restrictions mean landlords should examine whether their current fee schedules impose separate charges for ordinary maintenance communications or necessary repair work.

4. Pest Control Charges in Certain Circumstances

The law prohibits fees or fines for pest abatement or removal when the tenant has not contributed to the infestation.

Because the restriction depends on the circumstances of the infestation, landlords should evaluate the facts before assigning responsibility for pest-related costs.

5. Certain Eviction-Related Fees

The law prohibits fees or fines for an eviction notice or for filing an eviction action before a court grants an eviction order.

However, the statute does not eliminate a landlord’s ability to recover court costs and filing fees as permitted by law.

Landlords should distinguish between prohibited charges imposed on tenants and court-related costs that may still be recoverable.

6. Move-In and Move-Out Walkthrough Fees

The law also prohibits fees or fines for an in-person walkthrough of a residential unit at move-in or move-out.

Property managers should review any inspection-related charges in their current policies to determine whether they are consistent with the new law.

Does the Law Apply to Every Residential Rental Property in Illinois?

Not every rental arrangement is covered in the same way.

The law generally applies to residential lease agreements entered into after January 1, 2027. It contains an exception for lease agreements involving dwelling units in owner-occupied premises containing six units or fewer.

Landlords should evaluate whether their property and lease arrangement fall within the statutory exception rather than assuming that all residential properties are treated identically.

Local rules also matter. Municipalities and counties may regulate tenant fees, but local regulations must provide restrictions at least as protective as those established by the state law.

Property owners and managers should therefore review both Illinois law and any applicable local requirements before finalizing their rental policies.

Can Landlords Avoid the Restrictions by Renaming a Fee?

No. The law expressly provides that a landlord may not rename a fee or charge to avoid the requirements of the statute.

For example, changing the label of a prohibited maintenance charge does not necessarily make the charge permissible. The substance of the fee and the service it covers remain important.

Landlords should review not only the names of their charges but also their actual purpose, how they are calculated, and when they are imposed.

A careful review can help identify policies that may need to be revised before the new requirements take effect.

What Can Happen if a Landlord Violates the Rental Fee Transparency Law?

The law allows a person alleging a violation to bring a civil action in a court with appropriate jurisdiction.

Depending on the circumstances and the applicable law, a court may order injunctive relief, monetary relief, attorney’s fees, and costs.

A dispute may arise when a tenant challenges a fee that was not properly disclosed or alleges that a prohibited charge was imposed. Clear lease language, consistent fee schedules, and accurate records can be important when evaluating these disputes.

Landlords should not assume that including a general fee provision in a lease will automatically make every charge enforceable.

How Should Illinois Landlords Prepare Before January 1, 2027?

Property owners and residential property managers can begin preparing by reviewing the documents and procedures they use throughout the rental process.

Consider the following steps:

1. Review rental advertisements. Confirm that all non-optional fees are disclosed clearly and conspicuously in the listing or an accompanying link, as required by law.

2. Update lease templates. Ensure all mandatory one-time and recurring fees are explicitly included on the first page of covered residential lease agreements.

3. Clarify utility arrangements. Review how rental listings and leases explain whether utilities are included in the advertised rent.

4. Audit application fees. Check screening costs, third-party invoices, billing deadlines, and supporting receipts.

5. Review maintenance and administrative charges. Identify fees related to after-hours requests, routine upkeep, maintenance calls, lease renewals, inspections, and other activities addressed by the statute.

6. Train property management staff. Make sure employees and third-party managers understand the updated requirements and apply them consistently.

7. Review local requirements. Check whether additional municipal or county rules apply to the property.

8. Seek clarification when necessary. If a particular fee or lease provision raises questions, obtain a legal review before continuing to use it.

Taking these steps ahead of the effective date can give landlords time to identify potential issues and make appropriate changes.

Frequently Asked Questions About Illinois Rental Fee Transparency, when does Illinois’ new rental fee transparency law take effect?

The law takes effect January 1, 2027. It generally applies to covered residential lease agreements entered into on or after that date.

Must all mandatory rental fees appear on the first page of the lease?

Yes. For covered leases, all non-optional fees, whether one-time or recurring, must be explicitly listed on the first page. The fees must also be disclosed clearly in the rental listing or through an accompanying link at the time of listing.

Are rental application fees capped at $50?

Generally, yes. An exception applies when the actual cost of a third-party background check exceeds $50 and the landlord satisfies the statutory requirements for upfront payment, billing within 14 days, and providing receipts.

Can a landlord charge a tenant for an after-hours maintenance request?

The new law prohibits fees or fines for after-hours maintenance requests, as well as several other charges connected with maintenance and routine upkeep.

Does the law prohibit every move-in fee or security deposit?

No. The final law should not be interpreted as a blanket prohibition on all move-in fees or security deposits. Landlords must evaluate each charge under the applicable statutory provisions and other relevant laws.

What should a landlord do if a fee is not clearly addressed by the law?

The landlord should review the statutory language, consider any applicable local rules, and seek legal guidance before imposing the charge.

Need Guidance on a Residential Lease or Rental Fee Dispute in Illinois?

Changes to Illinois landlord-tenant law can affect lease agreements, rental listings, property management policies, and disputes over charges. Reviewing the applicable requirements before a new lease is signed may help identify potential compliance issues and clarify the parties’ rights and obligations.

Weiss Ortiz Attorneys & Mediators serves clients throughout Cook County, Illinois, including Chicago, La Grange Park, Oak Brook, and Deerfield.



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Weiss Ortiz Attorneys & Mediators
Cook County, Illinois | Chicago | La Grange Park | Oak Brook | Deerfield
Phone: 773-498-4498
Website: weissortizlaw.com

Legal Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Laws may change, and their application depends on the specific facts of each situation. Reading this article does not create an attorney-client relationship.