Illinois Landlord Compliance Changes to Prepare for in 2027
As we approach the final months of 2026, Illinois property owners are preparing for another round of changes to the rules governing residential rental properties. Beginning January 1, 2027, a new set of statewide requirements will affect how landlords disclose and charge certain tenant fees, which are important for owners and property managers to review their leasing practices before the new year.
For Chicago landlords already navigating the Chicago Residential Landlord and Tenant Ordinance (RLTO), Fair Notice requirements, building regulations, and other local rules, these statewide changes add another layer to an already complex compliance environment.
Here are some of the most important rental regulatory changes Chicago property owners should have on their radar heading into 2027.
HB 3564 / Public Act 104-0479: New Rental Fee Transparency & Limitations
Signed into law in June 2026, HB 3564 (Public Act 104-0479) amends the Illinois Landlord and Tenant Act and establishes new statewide requirements governing how residential landlords disclose and charge tenant fees.
When the law goes into effect on January 1, 2027, landlords must clearly disclose all non-optional fees in rental listings and on the first page of the lease. If a required fee is not properly disclosed on the first page of the lease, the tenant cannot be held responsible for paying it.
The law also prohibits certain fees and fines tied to routine aspects of a tenancy. For Chicago landlords, this means reviewing existing lease templates, property listings, fee schedules, and management procedures before entering into new leases in 2027.
HB 3564 Major Takeaways:
Non-optional fees must be disclosed upfront. Required fees must be clearly disclosed in residential rental listings and on the first page of the lease.
Undisclosed fees cannot be collected. If a required fee does not appear on the first page of the lease, the tenant is not liable.
Certain fees are prohibited. Landlords cannot charge tenants for items such as lease renewals or modifications, after-hours maintenance requests, maintenance hotline calls, routine maintenance, landlord-required maintenance travel, or move-in/move-out walkthroughs.
Pest-control charges are restricted. Tenants cannot be charged for pest abatement when they did not contribute to the infestation.
Application fees face additional restrictions. Landlords cannot use application charges to duplicate tenant-screening costs or cover unrelated expenses.
Fees cannot simply be renamed. The law specifically prevents landlords from renaming a charge to circumvent the requirements.
Some small owner-occupied properties are exempt. The new requirements do not apply to leases for dwelling units in owner-occupied properties containing six units or fewer.
Violations can carry real consequences. Tenants may bring a civil action, and courts may award injunctive relief, monetary relief, attorney's fees, and costs.
For many landlords, the biggest practical change will be ensuring that the advertised cost of renting a property matches the mandatory charges ultimately presented in the lease. See the full bill text and timeline for HB 3564.
HB 5234 / Public Act 104-0514: HB 3564's Effective Date Moves to 2027
Property owners researching the previous HB 3564 may encounter conflicting information stating that the law takes effect in July 2026. That's because the legislation originally contained a July 1, 2026 effective date.
HB 5234, enacted as Public Act 104-0514, changed HB 3564’s effective date to January 1, 2027. HB 5234 does not create a separate set of landlord requirements. It establishes when landlords must begin complying with HB 3564's new rental-fee rules.
HB 5234 Major Takeaways:
HB 5234 became law in June 2026.
It changed HB 3564's effective date from July 1, 2026 to January 1, 2027.
The additional time allows landlords and property managers to review leases, rental listings, and fee structures before the new requirements take effect.
Owners should avoid relying on older articles or summaries that continue to reference a July 2026 effective date.
See the full bill text and timeline for HB 5234.
HB 4377: Proposed Changes to Residential Leasing Broker Fees
Another potentially significant change remains worth monitoring, although it is not currently passed.
As amended by the Illinois Senate, HB 4377 would change how broker and leasing-agent fees are handled in residential rentals. Under the Senate amendment, if landlords retain a real estate broker or leasing agent, the landlord could not direct that broker or agent to collect payment from the tenant for services performed for the landlord, which include listing, showing, screening, qualifying applicants, and preparing lease documents.
The legislation would still allow a broker or leasing agent to collect compensation from the landlord who actually retained their services, and it contains an exception for qualifying dual-agency relationships. However, the amended legislation had not completed the required legislative process as of this writing. Property owners should therefore treat this as a development to monitor that could become a 2027 compliance requirement.
HB 4377 Major Takeaways:
The proposal could significantly affect how residential leasing commissions are structured.
A landlord's broker generally could not shift the landlord's brokerage or leasing-agent costs to the tenant under the proposal.
Tenants could still independently retain and compensate their own broker.
The amended bill is not currently law, so landlords should monitor its status rather than change their practices based solely on the proposal.
See the full bill text and timeline for HB 4377.
Preparing Your Chicago Rental Properties for 2027
The new rental-fee requirements remind us that rental property management in Chicago involves much more than collecting the monthly rent and coordinating maintenance. Owners must navigate overlapping state and local requirements covering leases, disclosures, fees, notices, tenant rights, building operations, and fair housing.
Before 2027, residential property owners should review their current lease templates, rental listings, application processes, tenant fee schedules, and internal procedures to identify practices that may need to change. If you haven’t reviewed your lease documents recently, PRG Management can help.
Stay Compliant with PRG Management
At PRG Management, staying up to date on local regulatory compliance is crucial to protecting the properties we manage. Our team stays current on evolving Chicago and Illinois requirements and incorporates those changes into the day-to-day management of our clients' investments.
Whether you own a single investment property, a multifamily portfolio, or manage a community association, our local regulatory and compliance expertise can help keep your investment operating efficiently and in compliance.
Looking for an experienced Chicago property management company that will keep your investments compliant? Contact PRG Management or fill out the form below to learn how our team can help.