Illinois rules for property managers

Under the Real Estate License Act of 2000, a broker is anyone who, for others and for compensation, rents or leases real estate, negotiates or lists rentals, or supervises the collection of rent. Residential leasing agents may do only residential leasing work while employed by a broker; full property management needs a broker license under a sponsoring broker.

Owners and lessors and their regular employees for the owner's own property, attorneys, court fiduciaries, and resident managers employed by the owner who live on the premises.

Firms must hold rents, deposits, and other client money in escrow (special) accounts, and must file a consent allowing IDFPR to examine and audit those accounts.

Evanston and suburban Cook County cap deposits at 1.5 times monthly rent, and Oak Park requires between one and 1.5 times monthly rent, unless the unit is excluded from the local ordinance.

Count from move-out or the end of the right to possession, whichever is later. Deliver in person, by mail to the last known address, or by email to a verified address the tenant gave. If you give estimates, send paid receipts within 30 days after the statement. If the lease lists specific cleaning or repair charges, you may deduct those and must attach that part of the lease. Bad faith or no statement exposes you to twice the deposit plus court costs and attorney fees. The current Act text has no minimum unit count. Chicago, Evanston, Oak Park, and suburban Cook County have stricter rules.

The rate is the passbook savings rate of the largest Illinois commercial bank as of December 31 before the lease starts. Within 30 days after each 12-month period, pay or credit interest of $5 or more, unless the tenant is in default, and pay all unpaid interest at move-out. Willful failure makes you liable for an amount equal to the deposit plus costs and attorney fees. The Act does not apply to public housing. Chicago requires interest on nearly all deposits.

Chicago caps late fees at $10 for the first $500 of rent plus 5% of rent over $500. Suburban Cook County caps them at $10 for the first $1,000 plus 5% of rent over $1,000. Evanston and Oak Park have their own caps.

If an applicant gives free access to a reusable tenant screening report under 30 days old that covers your criteria, you cannot charge an application or screening fee. For leases from January 1, 2027, application and background check fees are capped at $50 unless the actual check costs more, you pay it first, and you bill the applicant with the receipt within 14 days. The same law bans fees for lease renewal, eviction notices, maintenance requests, and move-in or move-out walkthroughs. Owner-occupied buildings with 6 or fewer units are exempt.

Rent cannot be raised during a fixed-term lease unless the lease allows it. A month-to-month tenancy can be ended on 30 days' written notice and a week-to-week tenancy on 7 days, so give at least that much notice of a change. Chicago and other local ordinances may require more.

The Rent Control Preemption Act bars any ordinance that controls the amount of rent on private residential or commercial property. Local governments may still manage property they own.

If the tenant does not pay in full within the notice period, you may end the lease and file an eviction case without more notice. To keep partial payments from waiving the notice, it must state in prominent text that only FULL PAYMENT of the rent demanded will waive your right to terminate, unless you agree in writing to accept partial payment. Evanston requires 10 days, federally assisted housing may require 30, and Chicago, Evanston, and suburban Cook County give tenants a one-time right to pay and stay.

After any default in the lease terms, a 10-day notice ends the tenancy. The statute gives a sample form that names the default. State law sets no cure right, but Chicago and some other local ordinances add one.

Chicago requires 30 days if the tenant has lived there under 6 months, 60 days for 6 months to 3 years, and 120 days for over 3 years. Oak Park and suburban Cook County require 60 days. After a foreclosure, a new owner generally needs 90 days' notice to end a bona fide lease.

After the notice period, file an eviction case and serve the summons. If you win, the order may include a stay date before the sheriff can enforce it, and you schedule the eviction with the sheriff. Courts can seal eviction records in some cases. Timelines vary by county.

After the sheriff completes the eviction, the owner may change the locks. We could not confirm a statewide rule on storing or disposing of belongings left behind, and local ordinances may add rules. Get legal advice before disposing of property.

No notice is needed for emergencies. Outside those local ordinances, the lease controls. Urbana requires 24 hours' notice.

Notice must go by registered or certified mail, or sooner in an emergency. The tenant must use a licensed, insured tradesperson and give you the paid bill. It does not apply to owner-occupied buildings with 6 or fewer units, public housing, condos, co-ops, or mobile homes. Since 2025 the Landlord Retaliation Act bars retaliation for code complaints, repair requests, or tenant organizing, with a presumption for acts within one year and damages of 2 months' rent or twice actual damages.

For leases since January 1, 2024, give the state Radon Guide for Tenants, any radon records showing a hazard, and the radon disclosure form at application or before signing. Since January 1, 2025, disclose in writing before signing if the unit is in a FEMA 100-year floodplain and any known flooding, and for lower-level units any flooding in the last 10 years, in the lease signed by both sides. For leases from January 1, 2027, list all non-optional fees on the first page of the lease and in listings, and say whether utilities are included (owner-occupied buildings with 6 or fewer units are exempt). Chicago, Evanston, Oak Park, and suburban Cook County require their ordinance summaries.

The Illinois Human Rights Act covers race, color, ancestry, national origin, disability, religion, sex, sexual orientation (including gender-related identity), pregnancy, reproductive health decisions, military status, unfavorable military discharge, age (40 or older), order of protection status, marital status, arrest record, familial status, source of income, and immigration status. Suburban Cook County limits criminal history screening. Owner-occupied buildings with 4 or fewer units and rooms in an owner's home are exempt from most housing provisions, though not from the ban on discriminatory ads.

For leases entered on or after this date, landlords give the state radon guide, any hazard records, and a radon disclosure form, and tenants may test within 90 days and end the lease if a hazard is not mitigated.

Allows the itemized statement by email to a verified address and deductions for cleaning or repair costs listed in the lease, with the lease excerpt attached.

Replaces the Retaliatory Eviction Act. Bars retaliation for complaints, repair requests, and tenant organizing, presumes retaliation within one year, and allows damages of 2 months' rent or twice actual damages plus attorney fees.

Landlords must disclose before signing whether a unit is in a FEMA 100-year floodplain and any known flooding, with extra rules for lower-level units, using a statutory form.

No application or screening fee may be charged when the applicant provides a qualifying reusable screening report under 30 days old.

If an online rent portal charges a fee, landlords must offer a way to pay without it, such as check or cash, for leases signed after this date.

For leases entered on or after this date (except owner-occupied buildings with 6 or fewer units), non-optional fees must be on the lease's first page and in listings, listed junk fees are banned, and application fees are capped at $50 in most cases.

• Illinois Department of Human Rights
• HOPE Fair Housing Center
• Open Communities
• South Suburban Housing Center