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Landlord-Tenant Law in Chicago: What Property Investors Should Know

Home River Chicago - Tuesday, December 28, 2021
Property Management Blog

Do you want to be a successful Chicago landlord? Then you've got to be familiar with Illinois landlord-tenant law. Renting out property means you have certain rights - and responsibilities - that you need to be aware of in full.

What does landlord-tenant law in Chicago say about a landlord's duties? What responsibilities do tenants have? How can they help landlord-tenant relations go smoothly?

Let's take a look at a few highlights of landlord-tenant law in Chicago that every landlord needs to know.

Landlord-Tenant Law in Chicago: Its Aims and Purpose

Landlord-tenant law in Chicago was established in 1986. It is set out in the Residential Landlord and Tenant Ordinance (RLTO).

The RLTO aims to maintain high standards of housing, and protect the health, safety, and welfare of citizens living in Chicago. 

The ordinance covers most rental units in Chicago. It's always best practice to have a written lease in place. However, it's important to note that these laws also apply to rental units with oral leases.

Tenants' Responsibilities 

Generally speaking, it is the responsibility of the tenant to keep the rental unit clean and safe. 

This includes specific provisions, such as:

  • Ensuring there are working batteries in smoke and carbon monoxide detectors
  • Using all equipment in accordance with safety standards
  • Not damaging the unit
  • Not causing a disturbance to neighbors

Landlord's Responsibilities

The first point for landlords to consider is their right of access to the property. Landlords must provide two days' notice before entering the property.

Tenant Screening

On January 1, 2020, a new law came into effect in Cook County, called the Just Housing Amendment. This makes two provisions that impact tenant screening.

Firstly, the amendment prohibits housing discrimination based on someone's covered criminal history.

Secondly, what if an otherwise qualified candidate has a criminal record? Landlords must perform an individualized assessment. Without this, they cannot deny them housing.

Thoroughly familiarize yourself with this tenant screening law and follow it to the letter. 

Security Deposit

A landlord must provide a receipt for security deposits. These funds must be held in an interest-bearing Illinois bank account, and the landlord must pay the interest each year.

In the event you need to use the deposit, there are laws to follow. An itemized statement of damages must be provided within 30 days of the tenant vacating the property. All security deposits or the balance thereof must be returned within 45 days of the tenant leaving the property.

Tenant Evictions

Landlords can pursue tenant evictions if the tenant fails to pay the rent within 5 days of receiving written notice from the landlord. Lease enforcements - the tenant breaking the terms of their lease can also be used to pursue tenant evictions.

Lease Evaluations

Lease evaluations can occur at the end of each lease term. However, check the length of notice you have to give if you want to increase the rent. You will need to provide up to 120 days' notice if your tenant has lived in the property for 3 years or more.

Let Property Managers Assist With Fulfilling Your Obligations

Landlord-tenant law in Chicago is complex, and you can't afford to make mistakes. Either you need to do a lot of homework, or you need to get help from experienced professionals.

At Chicago Home River Group, our property managers work with landlord-tenant law in Chicago day in, day out. Let them do the heavy lifting for you, and ensure you're compliant with all relevant laws.

Contact us today to discuss how we can help manage your Chicago rental property.