At the end of June, Governor Prtizker signed House Bill 3564 into law. This bill will go into effect on January 1, 2027.
What is House Bill 3564?
House Bill 3564 regulates how housing providers charge and disclose fees to prospective and current tenants. Originally, this was a much more restrictive bill, which included a cap on security deposits and a full prohibition of both move-in fees and application fees. However, REALTORS® worked with bill sponsors Sen. Mike Simmons and Rep. Nabeela Syed to substantially amend the legislation. A trailer bill, HB 5234, passed both chambers this past weekend, moving the effective date from July 1, 2026, to January 1, 2027.
Click here to view a shareable, printable overview of House Bill 3564 from Illinois REALTORS®.
What the Final Bill Requires
Disclosure of Up-Front Fees:
- All non-optional fees must be disclosed on the first page of the lease AND in any listing or advertisement that includes the rent amount, in a clear and conspicuous manner (which may be an accessible weblink).
- Disclosure must include whether utilities are included in the rental price.
- If a fee is not explicitly listed on the first page of the lease, the tenant is not liable for it.
Application Fee Limits:
- Application fees may be charged, but must reflect the actual cost of tenant screening (credit checks, background checks, screening reports).
- Fees over $50 are only permitted if the actual third-party screening cost exceeds $50, the landlord pays the cost upfront and bills the tenant within 14 days with a receipt.
- Prohibited: duplicate screening fees, fees exceeding actual cost, administrative add-ons and any fee unrelated to screening.
Ban on Other Fees During Tenancy:
Housing providers may NOT charge tenants for:
- After-hours maintenance request fees
- Fees for contacting property management (calls, emails, maintenance requests)
- Maintenance hotline, service call, or travel charges for repairs
- Fees for routine maintenance and upkeep
- Pest control charges if the tenant did not cause the issue
- Fees for an eviction notice or filing prior to an eviction order being entered
- Fees for in-person walk-throughs at move-in or move-out
What Did NOT Change
With REALTOR® advocacy, move-in fees and security deposit regulations were preserved as-is in the final bill. The January 1, 2027, effective date provides time for members to review lease templates, advertising practices and fee structures before the law takes effect. We encourage all members to consult with legal counsel to ensure compliance.
Update to Leases
The effective date of these new regulations will be January 1, 2027. Our Forms and Contracts Committee will make necessary updates to the 2027 lease and any other supporting documents to ensure they align with this new law.