Are small Illinois landlords exempt from the 2027 rental fee law?
Quick answer
Only owner-occupied buildings with 6 units or fewer. Section 35(e) exempts lease agreements for dwelling units in owner-occupied premises containing 6 units or fewer. A small landlord who does not live in the building, or an owner-occupied building with 7 or more units, is covered for residential leases entered into after the law takes effect on January 1, 2027 (Public Act 104-0514).
What does the law say? Key facts and official sources
| Item | What the law says | Source |
|---|---|---|
| Start | January 1, 2027: Public Act 104-0514 moved the start date of HB 3564 from July 1, 2026 to January 1, 2027; applies to leases entered into after that date (35(e)) | Public Act 104-0514 |
| Exempt | Leases for dwelling units in owner-occupied premises containing 6 units or fewer (35(e)) | 765 ILCS 705/35 (Public Act 104-0479) |
| Coverage | All lease agreements for residential rental property entered into after the effective date (35(e)) | 765 ILCS 705/35 (Public Act 104-0479) |
| Banned fees | 11 kinds of fees, including renewal, eviction notice, routine maintenance and application fees over $50 (35(c)) | 765 ILCS 705/35 (Public Act 104-0479) |
| First page of the lease | All non-optional fees, one-time or recurring, must be explicitly on the first page; if not, the tenant is not liable for the fee (35(b)) | 765 ILCS 705/35 (Public Act 104-0479) |
| Penalty | No fixed fine. Any person alleging a violation may sue; the court may order injunctive relief, monetary relief, attorney's fees and costs (35(f)) | 765 ILCS 705/35 (Public Act 104-0479) |
| Last verified | November 1, 2026 | Astor Ventures |
Is a single-family house I rent out exempt?
Not under the text of 35(e). The exemption covers owner-occupied premises with 6 units or fewer; a house the owner does not live in is not owner-occupied.
Can my city still apply its own rules?
Yes. Local governments may regulate fees charged to tenants, but at a minimum as strictly as this Section (35(d)). Check local ordinances even if you are exempt from the state rule.
Does the exemption cover the whole Section?
Section 35(e) says "this Section does not apply" to those leases, so the first-page rule, listing disclosures and fee bans all fall outside it for exempt units.
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What else do people ask?
Is there a fine for non-exempt landlords?
No fixed fine; tenants can sue for injunctive relief, money, attorney's fees and costs (35(f)).
When does the law start?
January 1, 2027 (Public Act 104-0514).
Can I rename a fee to avoid the law?
No (35(e)).
Is this legal advice?
No. General information only.
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