Chicago’s Protecting Renters Ordinance (PRO): What Landlords Need to Know
Chicago property owners could face significant changes to the rules governing residential rental properties under the proposed Protecting Renters Ordinance (PRO).
Introduced as a broad update to Chicago’s rental housing policies, Chicago’s PRO would impact landlord-tenant regulations, rental property registration, enforcement, eviction proceedings, and lease non-renewals. The proposal represents the first comprehensive update to Chicago’s tenant protections in approximately 40 years.
PRO is organized around five major components that could change how residential rental properties are owned and managed throughout the city. Here’s what Chicago landlords and property owners should know about the proposed ordinance and how these changes could impact investments and day-to-day operations.
Important: The Protecting Renters Ordinance remains proposed legislation. Requirements may change as the ordinance moves through the legislative process.
1. RLTO Modernization
A core aspect of PRO is updating Chicago’s existing Residential Landlord and Tenant Ordinance (RLTO). The proposal intends to modernize Chicago’s RLTO, standardize certain fees and deposits, strengthen tenant protections, and establish a new Tenant Bill of Rights. The broader modernization effort also targets what the City describes as hidden or “junk” rental fees.
For landlords, these changes could affect several routine aspects of leasing and property management, including security deposits, move-in fees, notices, documentation, and tenant remedies. If passed, Chicago landlords and property owners would need to carefully review existing lease templates and management procedures to ensure they align with the updated requirements.
PRG Management helps Chicago property owners navigate changing RLTO requirements through compliant lease preparation, proper documentation, and management procedures designed around current local regulations. Learn more about our Chicago rental management services.
2. Citywide Rental Registry
PRO would establish a citywide rental registry requiring the annual registration of non-owner-occupied rental units in Chicago. The registry would give the City a centralized database about Chicago’s rental housing stock to support enforcement and future housing policy decisions. Registration fees would also fund oversight, enforcement, and implementation, with a proposed tiered fee structure based on property size.
For Chicago property owners and managers, this registration process would create additional ongoing compliance responsibilities. Owners of multiple properties or larger portfolios would need procedures to ensure their properties remain properly registered and that required information stays current.
If this feels overwhelming, we’re here to help. PRG Management can help owners stay on top of ongoing property registration, documentation, and other Chicago compliance requirements across individual properties and larger portfolios. Learn more about our Chicago rental investment management services.
3. Bureau of Rental Housing Services
The ordinance also aims to establish a new Bureau of Rental Housing Services (RHS) within the Chicago Department of Housing. The bureau would process rental complaints, conduct investigations, and coordinate the enforcement of rental housing requirements. Implementation would involve coordination between several City agencies, including the Department of Housing, Department of Buildings, Department of Law, 311, and Department of Administrative Hearings.
For Chicago landlords and property owners, a dedicated rental housing enforcement body would make documentation and consistent compliance procedures even more important. Maintaining accurate records of leases, notices, maintenance requests, tenant communications, and other property activity will help owners respond appropriately when questions or disputes arise.
PRG Management clients benefit from organized recordkeeping, documented tenant communications, and consistent management procedures that help keep properties compliant and prepared for Chicago’s evolving enforcement requirements. Learn more about our rental investment management services.
4. Eviction Counsel Program
PRO would formally establish a new Eviction Counsel Program (ECP), providing legal representation for qualifying tenants facing eviction. The provision would build upon Chicago’s existing Right to Counsel pilot program by formally incorporating tenant legal representation into the City's rental housing framework. Rather than establishing an entirely new initiative, this component would codify and stabilize the legal-assistance program already operating as a pilot.
While this component is primarily focused on providing legal assistance to tenants, landlords should understand that eviction proceedings could increasingly involve legal counsel on both sides. Proper notices, documentation, lease enforcement, and adherence to required procedures would therefore remain particularly important when pursuing an eviction.
Our team understands the frustrations that come with evictions. That’s why PRG Management helps owners and investors navigate the eviction process by maintaining proper notices, lease documentation, tenant records, and coordination with legal counsel when necessary. Learn more about our investment portfolio management services.
5. Just Cause for Eviction & Non-Renewal
Perhaps one of the most consequential changes for property owners is the proposed Just Cause requirement. Under the new proposal, landlords would need to provide a qualifying reason for certain evictions or lease non-renewals rather than simply choosing not to renew a tenancy. Depending on the circumstances, landlords could also be required to provide relocation assistance to affected tenants. This represents a notable change from the flexibility landlords currently have when deciding whether to renew certain tenancies.
This could significantly impact how owners approach lease expirations, property renovations, sales, owner move-ins, and other situations in which a tenancy may need to end. If adopted, lease non-renewals could require more planning, documentation, and consideration of potential relocation costs.
PRG Management helps owners and investors navigate lease renewals and non-renewals with proper notices, documentation, and procedures designed to keep their properties compliant with Chicago and Illinois requirements. Learn more about our Chicago investment management services.
What Could PRO Mean for Chicago Property Owners?
Taken together, the five components of the Protecting Renters Ordinance represent a potentially significant expansion of Chicago’s rental housing regulations. For landlords and investors, the impact would extend beyond any single new requirement. Property owners could face additional registration obligations, updated leasing and fee requirements, expanded enforcement, new procedures for lease non-renewals, and greater importance placed on maintaining accurate property and tenant records.
The proposal could be particularly important for investors with larger Chicago portfolios, where implementing regulatory changes consistently across multiple properties can become an operational challenge. If passed, the City has proposed phasing implementation over approximately 12 to 24 months following passage, rather than implementing every component at once.
Stay COMPLIANT WITH Chicago Rental Regulations with PRG Management
While the Chicago Protecting Renters Ordinance (PRO) remains proposed legislation, Chicago property owners should continue monitoring its progress and be prepared to review leases, fees, notices, documentation, and management procedures if it becomes a final ordinance.
At PRG Management, our team stays current on evolving Chicago and Illinois regulations and incorporates new requirements into the day-to-day management of our clients’ properties. We can help you navigate these changes, update your management procedures, and keep your property compliant as new requirements take effect.
Are you prepared for the next changes to Chicago’s rental laws? Contact PRG Management to learn how our team can help keep your investment compliant and operating efficiently.