New Illinois Landlord Fee Transparency Requirements Take Effect in 2027

Additional Contributor: Elina Callas

On January 1, 2027, Public Act 104-0479, amending the Illinois Landlord and Tenant Act (765 ILCS 705/35) (the “Transparency Act”), goes into effect. The Transparency Act serves to eliminate undisclosed so-called “junk” fees by requiring landlords to clearly disclose the full cost of a rental property before prospective tenants sign a lease. The Transparency Act will apply to all residential leases and renewals entered into after Jan. 1, 2027, excluding owner-occupied rental units in buildings with six units or fewer.

The Transparency Act requires landlords to list all non-optional fees, whether one-time or recurring, explicitly on the first page of the lease; if a fee is not so listed, the tenant is not liable to pay it. Mandatory fees must also be clearly disclosed in any listing of the property (or an accompanying weblink), and the listing or lease must state whether utilities are included in the rent. These requirements are in addition to those of the 2025 Safer Homes Act, which mandated additional requirements for the first page of the lease.

The Transparency Act also caps rental application fees, including background check fees, at $50.00, and permits a background check fee to exceed that amount only when (i) a third-party background check costs more than $50.00, (ii) the landlord pays that cost upfront, and (iii) the landlord bills the applicant (with the provider’s receipts) within 14 days. Consequently, landlords bear the upfront cost and collection risk for screening costs above the cap. The fee is waived if landlords fail to bill tenants within 14 days after completion of the background check. Further, a tenant’s failure to pay the background check fee may never serve as the basis for an eviction during the first year of the lease. The Transparency Act also bans a range of other charges, including fees for modifying or renewing a lease; for an eviction notice or filing before the court grants an eviction order; for after-hours and routine maintenance; for contacting the owner or manager; for travel to perform maintenance; for a maintenance hotline; for pest abatement not caused by the tenant; and for in-person move-in/move-out walkthroughs.

It is important to note that a landlord may not rename or recharacterize fees to circumvent these prohibitions. Although the statute does not define what constitutes “renaming,” landlords should be careful about any charges attached to a lease, particularly if they correspond to a fee charged in a prior year. Failure to comply with the Transparency Act may expose a landlord to civil actions, in which tenants may recover attorneys’ fees and court costs that can quickly become expensive under Illinois law. Further, the Transparency Act specifically allows fees charged in violation of the statute to be nullified.

Illinois landlords should prioritize reviewing their lease forms, listings, advertising, and fee structures to ensure compliance before their first 2027 lease renewal or new tenancy, and should consult an attorney with any questions to avoid costly penalties. Our office stands ready to answer any questions about interpreting the Transparency Act and to provide guidance on lease modifications.

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