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Frequently Asked Questions concerning the Rental Fee Transparency and Limitations Law

Written by Victoria Munson |

Published: November 9, 2026

This law (PA 104-0479 formerly known as HB 3564) BECOMES EFFECTIVE JANUARY 1, 2027, and places statewide restrictions and requirements on rental housing, application fees, and “Junk Fees.”

Through the advocacy efforts of Illinois REALTORS®, the legislation shifted from broad prohibitions and fee caps to an approach emphasizing transparency and disclosure while preserving the ability of housing providers to charge reasonable and necessary fees.

General Questions

PA 104-0479 is intended to increase transparency regarding fees charged to residential tenants and prohibit certain fees considered “junk fees.” The law requires housing providers to disclose non-optional fees so prospective tenants better understand the costs associated with renting a property.

January 1, 2027.

No. Housing providers may continue to charge move-in fees and security deposits. However, required fees must be properly disclosed in accordance with the new law.

Yes. However, owner-occupied buildings containing six or fewer units are exempt.

No. Housing providers must continue complying with local ordinances that impose more restrictive requirements on rental fees. Examples include the Chicago Residential Landlord and Tenant Ordinance (RLTO) and the Cook County Residential Tenant Landlord Ordinance (RTLO).

Prohibited Fees

The law prohibits certain fees or fines, including those charged for:

  • Tenant screening fees that are separate from or intended to duplicate actual screening costs.
  • Modifying or renewing an existing lease.
  • Sending an eviction notice or filing an eviction complaint.
  • After-hours maintenance requests.
  • Contacting a building owner or property manager regarding maintenance, lease questions, or other tenancy-related matters.
  • Travel necessary to complete maintenance work.
  • Routine maintenance of a rental unit.
  • Pest removal or abatement when the tenant has not contributed to the infestation.
  • Conducting an in-person walk-through of the rental unit at the time of move-in and move-out.

No. The new law prohibits fees charged for modifying or renewing an existing lease.

The law prohibits charging a tenant for pest abatement or removal when the tenant has not contributed to the infestation.

Housing providers cannot charge fees simply because an eviction notice was sent or an eviction complaint was filed. However, the law does not prohibit recovering court costs and filing fees as part of the eviction process.

Application Fees and Tenant Screening

No. Although an earlier version of the legislation proposed a $20 application fee cap, that provision was removed from the final law.

Yes, but if an application fee exceeds $50 due to the cost of a third-party background check, the housing provider must pay the amount up front and then provide the tenant with a bill and receipt documenting the background check cost within 14 days after the background check is paid for upfront by the housing provider.

If the housing provider does not provide the required bill and receipt within the specified 14-day period, the application fee must be waived.

Disclosure Requirements

Housing providers must disclose all non-optional or mandatory fees that tenants are required to pay in addition to rent. These fees must appear on the first page of the lease.

NOTE: The IDHR Summary of Rights for Safer Homes Act is required to be attached to the front of the lease. A reasonable interpretation may be to treat the four-page IDHR Summary of Rights for Safer Homes Act disclosure as an attachment to the front of the lease and the first page of the actual lease as the first page for purposes of PA 104-0479.

Yes. A housing provider must disclose whether or not utilities are included in the rent. This must be disclosed in the listing and on the first page of the lease.

Yes. When a housing provider advertises a rental property and includes the rental amount, the advertisement must disclose all non-optional fees associated with the unit. The advertisement must also disclose whether utilities are included in rent.

No. If a rental advertisement includes the rental amount, all non-optional fees must also be disclosed in that advertisement.

A reasonable interpretation may be to treat the four-page IDHR Summary of Rights for Safer Homes Act disclosure as an attachment to the front of the lease and the first page of the actual lease as the first page for purposes of PA 104-0479.

Based on the requirements described in the document, REALTORS® and housing providers should consider the following steps:

  1. Review existing fee structures. Identify any fees that will be prohibited beginning January 1, 2027.
  2. Update lease agreements. Ensure all mandatory fees and required utility payments appear on the first page of the lease.
  3. Review rental advertisements. Confirm that advertisements containing rental prices also disclose all mandatory fees.
  4. Evaluate application fee procedures. Establish a process for providing required documentation when application fees exceed $50 due to third-party background check costs.
  5. Review local ordinances. Determine whether additional or more restrictive local requirements apply.
  6. Consult legal counsel. Address questions concerning lease disclosures, prohibited fees, and compliance procedures before the effective date of January 1, 2027.

If you have questions regarding this issue, consult with your own attorney or contact the Illinois REALTORS® Legal Hotline.

About the writer: Prior to joining Illinois REALTORS® in 2022, Victoria (Vicki) Munson was an attorney in private practice focusing on real estate and estate planning matters. She enjoyed assisting buyers and sellers in bringing their transactions to the closing table. Victoria earned her bachelor’s degree from Western Illinois University and her Juris Doctor from The John Marshall Law School.

Your Illinois REALTORS® Legal Team