Protecting Renters Ordinance (PRO) Issue Summary

Issue Overview

The Johnson Administration is proposing a sweeping overhaul of the Residential Landlord and Tenant Ordinance (RLTO) called the Protecting Renters Ordinance (PRO). The ordinance is expected to be introduced before the end of June 2026. REALTORS® have been proactively educating Alders and engaging Chicago media outlets on this ordinance, which would negatively impact Chicago multifamily housing, given that the ordinance would:

  • Create an Informal “Rent Control” Framework: At the time of lease renewal, if a rent increase is deemed “unconscionable” by a tenant, they would have the right to reject it and demand relocation payments equaling four months’ rent or more.
  • Cap Security Deposits & Ban Move-In Fees: Security deposits would be capped at one month’s rent and move-in fees are effectively prohibited. Many landlords began charging move-in fees to avoid Chicago’s highly punitive security deposit litigation environment. Many tenants see move-in fees as preferable to paying larger security deposit sums up-front.
    • It does contain minor changes to security deposit interest rates and comingling/depositing multiple security deposits into one account, items that have historically generated litigation, but those changes are overwhelmed by the broader expansion of landlord liability, mandatory payments, procedural mandates and tenant causes of action throughout the ordinance.
  • Establish a Sweeping Tenant Bill of Rights: Broad new tenant rights covering tenant organizing, rent withholding, lease termination, retaliation claims and quiet enjoyment while significantly expanding damages, penalties, attorneys’ fees and injunctive relief against housing providers. The ordinance also provides tenants with broader rights to make repairs to units at the expense of landlords.
  • Institute “Just Cause Eviction”: Landlords must satisfy narrow statutory grounds before recovering possession and may owe relocation assistance even for owner move-in, family occupancy or major rehabilitation. The language also all but bars non-renewals and applies even to owner-occupied 2–6 unit buildings.
  • Encourage “Cash-for-Keys” Negotiations: Rather than navigate the formal eviction process when trying to recover their property, Just Cause requirements create incentives for landlords to negotiate private buyout agreements with tenants. Similar policies in cities like San Francisco, where buyout agreements sometimes reached five figures, have made cash-for-keys arrangements commonplace, further driving up costs for housing providers.
  • Establish a Residential Rental Registry: Applies to all owners of one or more dwelling units available for rent in the City of Chicago. This registry will require landlords to submit multiple points of information to the Department of Housing, requiring significant additional disclosures, costs, and administrative time for landlords and management offices. Owners who do not reside in or have a place of business within the City of Chicago must designate or hire a local representative who does reside in or have a place of business within the City of Chicago to receive any notices from the City on the owner’s behalf. The fees to register properties are detailed below.
    • Registration Fees: There are fees associated with registering a given property or properties as follows
      • One to four units: $20 per unit annually
      • Five to 49 units: $40 per unit annually
      • Buildings of 50 or more units: $60 per unit annually
  • Create Significant Financial and Legal Exposure: Landlords may face four to five months of Fair Market Rent in mandatory relocation payments and penalties, plus attorneys’ fees and litigation costs. The fee and security deposit caps will also increase costs for landlords, which will have to be passed on to other tenants. The registration process and fees will place a heavy burden on the amount of time and money that comes directly from landlords’ bottom line and strict penalties for non-compliance are set forth in the ordinance. Limits on other fees will continue to raise the price of housing for tenants, and put the squeeze on landlords who will move out of neighborhoods.

Legislative Outlook

We currently expect a June 2026 introduction. It is possible that the administration may attempt to introduce the matter directly to the Committee on Housing & Real Estate, but given that an introduction like that would be in violation of the Council’s Rules of Order, it is more likely that we will see an introduction to the full Council.

Its final language remains subject to change. Our Government Affairs team is heavily engaged, proactively educating Alders and engaging Chicago media outlets on this ordinance, which would negatively impact Chicago multifamily housing. Be on the lookout for updates, and a member Call For Action on this ordinance.

REALTOR® Stance

In its 40-year existence, the RLTO has historically reflected a balance between the rights and responsibilities of both landlords and tenants. This sweeping expansion of regulation abandons that balance entirely, increasing the cost of owning and operating housing in Chicago at the worst possible time. Each provision adds complexity, liability and costs that ultimately fall on renters, without addressing the root causes of rising rents. As drafted, the PRO raises serious concerns about unintended consequences that could reduce housing availability, discourage neighborhood investment and increase costs for renters across Chicago. We are actively engaged with alderpersons and prepared to issue a Call for Action if a vote takes place.

We want your input! Contact our Advocacy Team at advocacy@chicagorealtor.com.

Additional Resources