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Illinois rental fee law: what changes Jan 1, 2027

From Jan 1, 2027, Illinois caps rental application fees at $50, bans 11 kinds of fees and puts every required fee on page one of the lease.

Amin · Founder of Xzerno · former Chicago leasing agent

Published · Updated · 9 min read

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From Jan 1, 2027, Illinois caps rental application fees at $50, with one narrow exception for a background check that really costs more. An application fee over $50 is the first of 11 kinds of fees and fines the law bans, which also include fees to renew or change a lease and fees for a move-in or move-out walk-through. Every fee you're required to pay has to be listed on the first page of the lease, and a fee that isn't there is a fee you don't owe. The law covers new leases made after it takes effect, in every building except owner-occupied ones with six units or fewer (source 1).

What changes on Jan 1, 2027?

The law is Public Act 104-0479, which adds a new section, 765 ILCS 705/35, to the Illinois Landlord and Tenant Act (sources 1, 4). It does three things.

  • It caps application fees at $50. That includes the background check. A landlord can charge more only if a third-party check costs more than $50, the landlord pays for it up front, and the landlord bills you within 14 days with the company's receipt. Miss the 14 days and you owe nothing for the check. A landlord also can't add a second fee that repeats the screening cost or charges for something other than screening (source 1).
  • It bans 11 kinds of fees, listed in the next section (source 1).
  • It puts every required fee on page one. Every fee you can't opt out of, one-time or monthly, must be written on the first page of the lease. If a required fee isn't there, you don't have to pay it. The rental listing, or a page it links to, must also show those fees and say whether utilities are included in the rent (sources 1, 5).

A landlord can't get around any of this by renaming a fee. Illinois Legal Aid says a judge looks at what the fee actually pays for, not what it's called. If a landlord breaks the rules, you can sue, and a judge can order the landlord to stop, pay you money and cover your court costs and legal fees (sources 1, 5).

Which fees does the law ban?

Here is the full list from the law, in the order it gives them (source 1):

#Banned fee or fine
1An application fee over $50, background check included (one narrow exception, above)
2An extra application fee that repeats the screening cost or covers something else
3A fee to change (modify) or renew a lease
4A fee for an eviction notice or filing, before a court orders the eviction
5A fee for an after-hours maintenance request
6A fee for contacting the landlord or manager about maintenance, service or lease questions
7A fee for travel to do maintenance or safety repairs
8A fee for a maintenance hotline, or for calling one
9A fee for routine maintenance and upkeep of the unit
10A pest control fee when you did nothing to cause the problem
11A fee for an in-person walk-through at move-in or move-out

The fees and fines 765 ILCS 705/35(c) bans on covered leases from Jan 1, 2027 (source 1, read Oct 21, 2026). On item 4, a landlord can still recover court costs and filing fees.

How did the law come about?

It started as a much bigger bill. In February 2025, Rep. Nabeela Syed filed HB 3564 to ban move-in fees and any charge to process an application, and the House passed it that April, 61 to 43 (source 3). In the Senate, where Sen. Mike Simmons of Chicago took it up, a committee added the page-one rule along with limits on security deposits and move-in fees. The Chicagoland Apartment Association and the Illinois REALTORS fought that version, the landlords' group saying it would disrupt the rental market (source 13), and it stalled when the spring session ended. The Illinois REALTORS were still urging senators to vote no in October 2025, arguing tenants would pay for the bill in higher rent (source 12).

That month, the Senate passed a cut-down bill, 39 to 16: the $50 cap, the 11 banned fees and fees on page one, but no rules on deposits or move-in fees (source 3). The House then had to accept the Senate's changes. Its first try, in February 2026, got 56 votes, not enough to pass, so it voted again in April and passed it 64 to 40. Opponents in the House still argued landlords would build the costs into rent (source 14). The Governor signed it on Jun 26, 2026, together with a second bill that moved the start from Jul 1, 2026 to Jan 1, 2027 (sources 2, 3). Afterwards, the Chicago Association of REALTORS said it had worked with the sponsors to change the bill, and that the rules on move-in fees and deposits were left as they were (source 15).

Why did Illinois pass it?

The sponsors' answer is surprise. When the Senate passed the bill, Sen. Simmons said: "When a tenant signs a lease, they shouldn't be surprised by charges included in their rent" (source 10). Housing groups backing the bill said surprise fees can add hundreds of dollars a month to housing costs (source 11).

Federal regulators describe the same problem. In a March 2026 notice asking for public comment on rental fees, the FTC cited a 2025 housing-market report that found more than 70% of renters had to pay at least one mandatory fee on top of rent. The notice also says the average renter submits two applications at a median fee of $50 each, that each adult usually pays a separate fee, and that extra charges often show up only at signing or on the first bill (source 7). An earlier federal report put the average application fee somewhere between $40 and $59, and found that 9% of applicants paid more than $100 (source 8).

There's no federal rule yet. The FTC's 2024 rule on hidden fees covers only event tickets and short-term stays like hotels, not apartment leases (source 9). Its rental fee rule is at an early stage: comments closed in April 2026, and we found no proposed rule as of October 2026 (source 7). So for Illinois renters, this state law is the rule that applies.

How will it help when you're renting with roommates?

You can see the full cost before everyone applies. With every required fee on page one, and in the listing or a page it links to, a group can add up what a place really costs before each person pays to apply (sources 1, 5).

Applying costs less at the high end. The cap doesn't lower a fee that's already $50 or less. It stops fees above $50. Here's what that means in practice, using made-up fees:

You apply…Before, at $75 eachFrom Jan 1, 2027, at most
to 4 places, on your own$300$200
to 1 place, as 3 roommates$225$150

Two examples with an assumed $75 fee, before and after the $50 cap (our arithmetic). The roommate row assumes each person pays their own fee, which is common but not set by the law.

That second row is our guess, because one thing the law doesn't say is how the cap works when several roommates apply together. It limits "a fee for a rental application", and Illinois Legal Aid describes it per applicant, but neither says whether each roommate can be charged up to $50 (sources 1, 5). Ask the landlord, in writing, whether each person pays and how much.

You may not pay a screening fee at all. Since 2025, if you bring a reusable screening report that's no more than 30 days old, free for the landlord to see, and covers what they check, the landlord can't charge you a screening fee (source 4). Illinois Legal Aid notes that some landlords may not know this rule yet (source 6).

Changing the lease can't come with a fee. Fees to modify or renew a lease are banned (source 1). Adding or replacing a roommate often means changing the lease, but the law never mentions roommates, so whether a "roommate swap fee" counts hasn't been tested. More in our guide to adding or replacing a roommate mid-lease.

What doesn't the law change?

  • Rent. There's no cap on it (source 1).
  • Security deposits and move-in fees. The law sets no limit on either. A required move-in fee is still legal if it's listed on page one (sources 1, 15).
  • Optional fees, like a fee for an amenity you choose, aren't on the ban list (source 1).
  • Owner-occupied buildings with six units or fewer. They're exempt from the page-one rule and the bans. If you rent in one, Illinois Legal Aid says you can still ask the landlord to tell you every fee and to give you a written lease (source 5).
  • The size of the cap. A separate state bill that would cut the application fee cap to $20 has been stuck in committee since March 2026 (source 16).
  • Leases made before the law starts. It covers leases made after it takes effect (source 1). Whether a renewal signed after Jan 1, 2027 counts as a new lease isn't settled, so ask.

For what fees cost today, see what fees come on top of rent in Chicago.

What about Chicago's own renter rules?

Chicago can go further than the state, but not below it. The law lets cities set their own fee rules only if they protect tenants at least as much (source 1).

Two competing city proposals are still not law. The Mayor's Protecting Renters Ordinance and a rival from aldermen opposed to it each cleared a City Council committee in September (sources 18, 19). The full Council put off a vote twice in late September, and at its Oct 14 meeting neither one came up, according to the City Clerk's meeting record (source 17). Unless the city passes something stronger first, the state law sets Chicago's fee rules on Jan 1.

If you're looking for a room and roommates in Chicago for the new year, read when to look for a room in Chicago and what landlords check when roommates apply together. Xzerno, a free-to-use roommate app for Chicago, helps you find someone whose habits fit yours before you apply anywhere together.

Frequently asked questions

When does the Illinois junk fee law take effect?

On Jan 1, 2027. The law, Public Act 104-0479, was signed on Jun 26, 2026, and a second law signed the same day moved its start from Jul 1, 2026 to Jan 1, 2027. It covers residential leases made after it takes effect, except in owner-occupied buildings with six units or fewer. General information, not legal advice.

How much can a landlord charge for a rental application in Illinois?

From Jan 1, 2027, no more than $50, background check included. A landlord can charge more only if a third-party check really costs more, the landlord pays it first, and bills you within 14 days with the receipt. If you bring a qualifying screening report no more than 30 days old, the landlord can't charge a screening fee at all.

What happens if a fee isn't on the first page of my lease?

Under the new law, you don't owe it. Every non-optional fee, whether one-time or monthly, must be written on the first page of the lease, and a tenant isn't liable for a required fee that isn't there. This applies to covered leases from Jan 1, 2027, and not to owner-occupied buildings with six units or fewer.

Does the law limit security deposits or move-in fees?

No. Early versions of the bill did, but those parts were cut before it passed. A landlord can still charge a security deposit and a required move-in fee, as long as any required fee is listed on page one. The law also doesn't cap rent.

Sources

  1. Illinois General AssemblyPublic Act 104-0479 (HB 3564, adds 765 ILCS 705/35) · read Oct 21, 2026
  2. Illinois General AssemblyPublic Act 104-0514 (HB 5234, sets the Jan 1, 2027 start) · read Oct 21, 2026
  3. Illinois General AssemblyBill status of HB 3564 · read Oct 21, 2026
  4. Illinois General AssemblyLandlord and Tenant Act, 765 ILCS 705 (sections 30 and 35) · read Oct 21, 2026
  5. Illinois Legal Aid OnlineRental junk fee ban FAQ (last reviewed Sep 11, 2026) · read Oct 21, 2026
  6. Illinois Legal Aid OnlineApplying for rental housing · read Oct 21, 2026
  7. Federal Trade CommissionRule on Unfair or Deceptive Rental Housing Fee Practices, advance notice (Federal Register, Mar 13, 2026) · read Oct 21, 2026
  8. Consumer Financial Protection BureauTenant background checks market report (Nov 2022) · read Oct 21, 2026
  9. Electronic Code of Federal Regulations16 CFR Part 464, Rule on Unfair or Deceptive Fees · read Oct 21, 2026
  10. Sen. Mike SimmonsSimmons passes bill to protect tenants from rental junk fees (Oct 30, 2025) · read Oct 21, 2026
  11. Housing Action IllinoisEnd Rental Junk Fees fact sheet (Mar 2026) · read Oct 21, 2026
  12. Illinois REALTORSCall for Action on HB 3564 (Oct 28, 2025) · read Oct 21, 2026
  13. The Center Squareon the Senate stalling the rental fee bill (Jun 6, 2025) · read Oct 21, 2026
  14. Evanston NowHouse passes rental fee limits (Apr 9, 2026) · read Oct 21, 2026
  15. Chicago Association of REALTORSHouse Bill 3564 signed into law (Jul 10, 2026) · read Oct 21, 2026
  16. Illinois General AssemblyBill status of HB 4998 · read Oct 21, 2026
  17. Office of the Chicago City ClerkCity Council meeting of Oct 14, 2026 (record and captions) · read Oct 21, 2026
  18. WTTW Newson Chicago's competing renter proposals (Sep 22, 2026) · read Oct 21, 2026
  19. Block Club Chicago2 competing bills head to full City Council (Sep 17, 2026) · read Oct 21, 2026

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