Illinois Rental Fee Law Starts January 1, 2027: What Tenants and Small Landlords Need to Know

Illinois's rental fee law starts January 1, 2027. It caps most application fees at $50, requires every mandatory fee to appear on the first page of the lease, and bans a list of charges such as lease renewal fees and after-hours maintenance fees. A tenant is not liable for a mandatory fee left off that first page.

This guide is for Illinois renters and small landlords who need to know what changes and when. It covers the fee cap, the disclosure rules, the banned fees, who is exempt and what to do now. Kenponet explains housing rules in plain language, and this is a case where one missing line on a lease can cost a landlord real money.

What the Illinois rental fee law does

House Bill 3564 adds "rental fee transparency and limitations" to the Illinois Landlord and Tenant Act. According to the law firm Gould Ratner, the rules take effect January 1, 2027 and apply to residential leases entered into on or after that date, as explained in its review of the 2027 rental fee changes.

The law does three things. It limits what a landlord can charge to screen an applicant. It requires clear disclosure of every non-optional fee in listings and leases. And it bans a set of fees that landlords have used to add to the monthly cost.

The effective date was set after a later bill moved it from an earlier start. Sources agree on January 1, 2027, so plan around that date, but check the Illinois General Assembly site if you need the exact public act number for a legal document.

How much can a landlord charge for an application?

Application fees, including the charge for a background check, are generally limited to $50. A landlord can charge more only if the real cost of a third-party background check is higher than $50, and then the landlord must pay the provider first and bill the applicant within 14 days with receipts.

If the landlord misses the 14-day window, the extra charge is waived. An unpaid background-check charge also cannot be the basis for an eviction during the first year of the lease. A landlord also cannot add a separately named fee that repeats a screening cost.

These details come from Illinois Legal Aid Online's guide to the rental fee rules. Renters who apply to several places should ask each landlord to itemize the fee before paying.

Other states are moving the same way. Our post on Colorado's tenant screening law for 2027 shows how another state is tightening application rules.

What must a lease and a listing disclose?

Every non-optional one-time fee and every non-optional recurring fee must appear on the first page of a written lease. The lease must also say whether utilities are included in the rent. A tenant is not responsible for a mandatory fee that is missing from that first page.

Listings have a similar duty. Any listing that states a rental price must clearly disclose all non-optional fees. The landlord can put them in the listing or provide an accessible link, and the listing must say whether utilities are included.

That is a real change for landlords who advertise a low base rent and add fees later. A $1,200 listing with a $75 amenity fee and a $40 package fee is now a $1,315 listing, and the law wants that number visible.

Renters can use the same rule to compare. Add every mandatory fee to the base rent for each listing, and compare the totals. Our post on rental junk fees in 2026 and what landlords can charge explains how to spot the common ones.

Which fees does the law ban?

The law bars fees for modifying or renewing a lease, for filing an eviction before a court order, for after-hours maintenance requests, for contacting the owner or manager, for maintenance travel or safety repairs, and for using a maintenance hotline. It also bans fees for routine upkeep, for pest control the tenant did not cause, and for in-person move-in or move-out walkthroughs.

Landlords cannot get around the list by renaming a fee. Courts look at what the charge actually covers, according to Illinois Legal Aid Online. A "convenience fee" for paying rent by card that covers a ban category can still be challenged.

Several things are not banned. Security deposits and move-in fees remain legal as categories. The law creates no new statewide late-fee cap, and Chicago and Cook County limits still apply. Court costs and filing fees remain recoverable where the law allows.

Our guide on getting your security deposit back by state covers the deposit rules that this law leaves in place.

Who is exempt from the Illinois rental fee law?

The law does not apply to dwelling units in owner-occupied premises with six or fewer units. The owner must live on the premises. A small landlord who rents out a duplex and lives in one side is exempt, but one who owns a duplex and lives elsewhere is covered.

That detail catches many small landlords. A single rented house is covered if the owner lives somewhere else. A six-unit building is also covered if the owner does not live in it. A seven-unit building is covered even when the owner lives there.

Tenants in exempt homes still have rights. They can ask about fees and request a written lease, according to Illinois Legal Aid Online. Local rules also apply, and cities and counties must keep protections at least as strong as the state law.

What can a tenant do about a violation?

Under the law, a person who claims a violation can sue for an injunction, money damages, attorney's fees and court costs, according to Gould Ratner. The law sets no fixed damages amount and no cure period, so even a small disputed charge can lead to fee-shifting.

Start with a written request. Ask the landlord to remove the charge and cite the law. Keep copies of the lease, the listing and your payment records, and save any messages.

If that fails, free help is available. The Illinois Attorney General's consumer protection page says its office cannot represent individuals privately, and it points people to legal aid referrals and to small claims court for claims of $10,000 or less, in its consumer protection overview.

A renter's checklist before you sign

Use a short checklist on every lease you consider in 2027. Each item takes a minute and can save real money across a twelve-month term.

Take photos of the listing and save the link. If the lease later shows a higher number, the listing is your proof. Saving a copy takes seconds and settles most arguments about what was advertised.

Also ask who the landlord is and whether the owner lives on site. That tells you whether the exemption might apply, and it helps you know who to contact if a problem comes up.

How this fits the national picture

Illinois is not alone. Several states have moved on junk fees, deposits and screening in the past two years, and tenants now see different rules when they cross a state line. Because rules change by state, always check the law where the rental is located, not where you used to live.

For landlords with units in more than one state, a single lease template no longer works. Keep a state-specific rider for each place, and update it each autumn when new laws are published, since most take effect on January 1 or July 1.

What small landlords should do before January 1

Start with an audit of every fee you charge. List each fee, what it covers and whether it is mandatory. Then check each against the banned list and the $50 application cap. Remove any fee you cannot justify.

Next, rewrite your lease template. Put every mandatory fee on page one and state whether utilities are included. Update your listings the same way, either with the fees listed or with a link.

Finally, fix your screening process. Charge the actual cost of the report, keep the receipt and send the bill inside 14 days if it exceeds $50. Landlords who rent in more than one state should note that rules differ. Our post on Washington's 2027 rent cap shows how a different state handles one part of the same problem.

Check your leases that run past January 1. The law applies to leases entered into on or after that date, so a renewal or replacement signed in 2027 should follow it. Ask a licensed Illinois attorney if you are unsure whether a renewal counts as a new lease.

Conclusion

Illinois's rental fee law is simple to state and strict in practice. Cap the application fee at $50, put every mandatory fee on page one, drop the banned charges and document everything. Renters get a clearer price, and landlords get a clear checklist.

Your next step depends on your side of the lease. Renters should add up total monthly costs before applying. Landlords should rewrite their lease and listings in the coming weeks, well before January 1. Kenponet will keep following state rental changes so you can see the rules before they take effect.