What a Landlord Cannot Do in Illinois

What a Landlord Cannot Do in Illinois

Landlords who retaliate are at risk of having the tenant terminate the lease and sue the landlord. If a court decides the landlord has retaliated against the tenant, the following penalties may be assessed: [1]

When Can a Landlord Retaliate?

Under landlord-tenant law in Illinois, there is never a time that a landlord can retaliate against a tenant for exercising their rights.

However, actions that may seem retaliatory can be legal if within the law. For instance, a landlord may increase the rent at the end of the lease term, and terminate a lease or evict a tenant for violating the terms of the agreement.

2. Discriminate

Under the Fair Housing Act, landlords cannot discriminate against a tenant based on protected characteristics such as race, color, national origin, religion, sex, familial status, or disability. Illinois also provides additional protection for categories such as immigration status. [12]

Discriminatory acts include:

A landlord does not provide necessary repairs to a Black tenant, but provides necessary repairs to a White tenant.

Consequences for Landlords Who Discriminate

Landlords who discriminate are at risk of having the tenant terminate the lease and sue the landlord. When suing the landlord, a tenant may either file a complaint with the U.S. Department of Housing and Urban Development (HUD) or the federal court in the jurisdiction where the tenant resides.

If either HUD or a federal court decides the landlord has discriminated against the tenant, the tenant may be eligible for the following remedies: [2]

When Can a Landlord Discriminate?

In Illinois, a landlord can never discriminate against a tenant, except in one instance. The exception is known as the “Mrs. Murphy Exemption”.

The “Mrs. Murphy” exemption provides that if a dwelling has four or fewer rental units and the owner lives in one of those units, that owner is exempt from the Fair Housing Act. Therefore, a landlord would be able to discriminate against tenants. [3]

There is a blanket ban on a landlord discriminating against the tenant because of race. No matter the Mrs. Murphy exemption, a landlord can never discriminate against a tenant because of race.

Furthermore, the exemption does not apply to rental advertisements. For example, the owner of the dwelling cannot be discriminatory in their advertisements by saying that people of a certain sexual orientation or race need not apply just because the dwelling itself is exempt from the Fair Housing Act.

3. Evict Without Cause

In Illinois, landlords cannot evict a tenant or force them to vacate the rental premises without legal cause that a tenant violated the lease.

A landlord may have legal grounds for evicting a tenant if the tenant: [4]

Consequences for Landlords Who Evict Tenants Without Cause

Landlords who evict their tenants without legal cause will be liable to the tenant for certain damages. If a court finds the landlord evicted the tenant without cause, the landlord may be liable for:

Once a court finds there was no cause for eviction, tenants will be allowed to return into the leased premises.

Eviction Without Adequate Notice

Illinois landlords cannot file a successful eviction in court without providing the tenant enough advance notice to vacate the premises, even when there is otherwise cause to evict. Illinois properties covered by the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act are federally entitled to a minimum 30 days of advance notice before a landlord can file eviction for nonpayment of rent or fees. This applies even after the act’s other protections have expired.

When Can a Landlord Evict a Tenant?

In Illinois, a landlord cannot legally evict a tenant without cause. However, a landlord would be able to evict a tenant on legal grounds such as the tenant not paying rent on time, staying after the lease ends, violating lease terms or not upholding responsibilities under Illinois law.

Eviction proceedings include:

Ensure that the tenant has violated the lease terms prior to initiating an eviction lawsuit.

4. Increase Rent During the Lease Term

A landlord in Illinois cannot raise the rent as often as they want nor increase it by an unreasonable amount during the life of the lease term. A rent increase will be illegal if it is done in any of three instances:

Consequences for Landlords Who Raise Rent

Unless written into the lease, a landlord cannot increase rent prior to the end of the contract. [5] When landlords do raise the rent for the aforementioned reasons, they will be in violation of the lease, and the tenant will be able to terminate the lease. Landlords may also be charged fines and penalties associated with increasing rent.

Before raising the rent, a landlord should ensure that it is done after the lease term has ended. If the proper procedure is outlined in the lease, those procedures should be followed.

When Can a Landlord Increase the Rent?

A landlord can increase rent at the end of any lease term. A lease is a legally binding contract, and the landlord must abide by the terms, including the set monthly rent. However, there are no control laws in Illinois, so any time a lease expires, the landlord can raise the rent as much as they like and allow the tenant the chance to renew at the new rate.

If the lease is for two years, the landlord can only raise the rent every two years, but if it’s a month-to-month lease, they can raise it every 30 days if they so choose.

5. Withhold Security Deposits

In Illinois, a landlord may not withhold the tenant’s security deposit for any disallowed reason. While most states have state laws governing security deposits, Illinois counties govern security deposits. [6]

For example, a landlord would be unable to withhold the security deposit for property damage incurred from normal wear and tear. Normal wear and tear is deterioration or damage that happens as a result of a tenant living in and using the rental unit in a reasonable manner.

Consequences for Landlords Who Withhold Security Deposits

A landlord who withholds a tenant’s security deposit will be responsible for repaying the tenant the whole security deposit amount. Furthermore, the landlord may also be on the hook for attorney’s fees and three times the amount of the security deposit.

When Can a Landlord Withhold a Tenant’s Security Deposit?

A landlord will be able to withhold a tenant’s security deposit for certain reasons. These reasons include: [6]

Should there be any deductions, the landlord must provide an itemized list of deductions that were made within 30 days.

6. Violate the Covenant of Quiet Enjoyment

Landlords in Illinois cannot violate the covenant of quiet enjoyment, which is an implied term in every lease that guarantees the tenant will have quiet and peaceful possession of the leased premises.

There are several ways a tenant’s right to quiet enjoyment can be violated. Some common examples of violations include: [7]

A landlord would be in violation of the covenant of quiet enjoyment if they refuse to fix broken locks allowing strangers to enter the premises.

Consequences for Landlords Who Violate the Covenant of Quiet Enjoyment

There are different recourse options that tenants can take when their rights are violated, including but not limited to:

Any of these actions would have a negative impact on the landlord. The landlord could also be liable for compensation such as moving expenses, attorney’s fees and other expenses.

When Can a Landlord Violate the Covenant of Quiet Enjoyment?

In Illinois, a landlord cannot violate the covenant of quiet enjoyment under any circumstances.

However, actions that seem to violate the covenant of quiet enjoyment may be legal in certain circumstances. For example, a landlord may enter the premises without providing notice to the tenant, in the event of an emergency.

A landlord enters into a tenant’s premise because there is evidence of a crime.

7. Violate the Warranty of Habitability

In Illinois, landlords must uphold the implied warranty of habitability, which is guaranteed in leases and ensures that the leased premises meet habitability requirements.

There are several ways a landlord may violate the warranty of habitability. Some common examples of violations include:

A landlord violates the warranty of habitability, if, after notice of breaking, they do not repair the heating system in the winter.

Consequences for Landlords Who Violate the Warranty of Habitability

When a landlord violates the warranty of habitability, a tenant is entitled to relief such as:

When Can a Landlord Violate the Warranty of Habitability?

Landlords in Illinois cannot violate the warranty of habitability at any time.

8. Commit Constructive Eviction

A landlord in Illinois cannot constructively evict tenants from the leased premises.

Constructive eviction is a circumstance where a tenant’s use of the property is so significantly impeded by actions under the landlord’s authority that the tenant has no alternative but to vacate the premises

Examples of constructive eviction include:

Consequences for Landlords Who Constructively Evict Tenants

Landlords who evict their tenants without just cause will be liable to the tenant for certain damages. If a court finds the landlord evicted the tenant without cause, the landlord may be liable for:

Once a court finds there was no cause for eviction, tenants will be allowed to return to the leased premises.

When Can a Landlord Constructively Evict a Tenant?

In Illinois, a landlord cannot withhold services or force out a tenant so as to constructively evict them.

Although, if a tenant has violated the lease terms, then the landlord can perform actions that are generally associated with constructive eviction. After lease termination, landlords are not contractually obligated to provide the mandatory services outlined in the lease.

9. Defraud Tenants

When landlords communicate with tenants, they cannot make any statements under false pretenses, which may lead the tenant to believe something that is not true.

There are many ways in which a landlord can commit fraud, including:

A landlord may not notify a prospective tenant that the rental premise is safe, while being aware the locks are broken and there have been recent break-ins.

Consequences for Landlords Who Defraud Tenants

Landlords who defraud current and prospective tenants may face litigation. Depending on the court, the tenant may be entitled to:

When Can a Landlord Defraud Tenants?

In Illinois, landlords cannot defraud tenants under any circumstance.

10. Fail to Pass State Inspections

Prior to renting out leased premises, landlords must register the rental premises with the proper authorities. Landlords must then conduct a proper inspection so that the premises are in a habitable condition for the tenant.

Consequences for Landlords Failing to Pass State Inspections

Failure to register the premises and conduct an inspection may lead to fines and other taxes.

When Can a Landlord Fail to Pass State Inspections?

Landlords must always pass state inspections to lease out the rental property.

Can a Landlord Deny Sublessees or Assignees?

Unless prior written consent has already been granted, a landlord can prohibit a tenant from subletting in Illinois. A landlord reserves the right to deny any and all future requests from a tenant to sublease. However, a landlord cannot deny a qualified sublessee or assignee.

A qualified sublessee or assignee is one that:

Consequences for Landlords Who Deny Qualified Sublessees or Assignees

When a landlord denies a qualified subtenant or assignee, the original tenant may sue the landlord for damages. A tenant may be able to recover money equivalent to the amount of monthly rent for which the landlord disallowed the prospective subtenant or assignee from making payments.

Furthermore, damages associated with the landlord’s failure to mitigate damages may be possible. The duty to mitigate damages exists where the landlord must take reasonable steps to re-rent the unit to a replacement tenant.

When Can a Landlord Deny a Sublessee or Assignee?

A landlord can deny a sublessee when:

Can a Landlord Charge Unlimited Amounts for the Security Deposit?

In Illinois, a landlord can charge an unlimited amount for the security deposit. There are no rent control laws capping the security deposit amount. However, landlords are expected to charge only a reasonable amount for the security deposit.

Generally, a reasonable amount for a Illinois security deposit could be two times the amount of rent. So, if the monthly rent is $1,000, a landlord could require the tenant to pay $2,000 as a security deposit.

Can a Landlord Deduct Expenses From the Security Deposit?

Landlords in Illinois can deduct expenses from the security deposit. [6]

A landlord will be able to withhold a tenant’s security deposit for certain reasons. These reasons include:

When deducting from a security deposit, a landlord must send the tenant an itemized notice of all deductions, including receipts. [10]

Can a Landlord Sue a Tenant for Lease Violations?

In Illinois, a landlord can sue a tenant for violating the lease. Common lease violations include:

Landlords can recover damages such as unpaid rent, costs of property damage the tenant caused and eviction of the tenant.

Can a Landlord Enter into a Tenant’s Premises During an Emergency?

A landlord can enter into a tenant’s premise when there is an emergency. [7]

In practice, a landlord should try to give at least 24 hours’ notice before entering a rented apartment to make (or assess for) repairs or show the unit to prospective new tenants.

In the event of an emergency, such as a fire, burst water pipe, or gas leak, landlords have the right to enter without notice. They may also enter the premises if a tenant has moved out without notifying the tenant or if the landlord has a court order to do so.

Can a Landlord Conduct a Background Check on Prospective Tenants?

A landlord in Illinois can conduct a background check on prospective tenants. In Illinois, landlords must make available to the applicant, printed notice of the landlord’s tenant selection criteria, including:

In Illinois, there are usually costs associated with background checks.

Can a Landlord Charge Late Fees for Late Rent?

In Illinois, a landlord can charge late fees for late rent. According to statute, a landlord can charge up to a certain percentage of the monthly rent as a late penalty. If the landlord is going to charge a late fee, the following requirements need to be met: [9]

  1. Notice of the fee is included in the written lease
  2. The fee is reasonable

Can a Landlord Set Occupancy Limits?

Illinois law requires that landlords set occupancy limits depending on the type of property the landlord owns.

Generally, the maximum number of adults that a landlord may allow to occupy a dwelling is three times the number of bedrooms in the premises. There are certain exceptions allowing a higher occupancy limit such as state or federal laws that allow a higher occupancy rate or if an adult is seeking temporary sanctuary from family violence.

Can a Landlord Require Certain Forms of Payment?

A landlord in Illinois can require certain forms of payment. However, a landlord cannot require any payment under the lease or similar agreement to be made in electronic form. [11]

When a tenant pays in cash, a landlord must provide a written receipt confirming payment.

Can a Landlord Charge an Application Fee?

In Illinois, a landlord can charge an application fee associated with a rental application. The fee is to pay the landlord’s cost of running a background check on a prospective tenant.

If the landlord rejects an applicant and the landlord has not made proper notice, the landlord will have to return the application fee. Furthermore, if an applicant requests a landlord to mail a refund of the applicant’s application fee to the applicant, the landlord shall mail the refund check to the applicant.

Sources

It is declared to be against the public policy of the State for a landlord to terminate or refuse to renew a lease or tenancy of property used as a residence on the ground that the tenant has complained to any governmental authority of a bona fide violation of any applicable building code, health ordinance, or similar regulation. Any provision in any lease, or any agreement or understanding, purporting to permit the landlord to terminate or refuse to renew a lease or tenancy for such reason is void.

If neither party elects to have a federal civil trial before the 20-day Election Period expires, HUD will promptly schedule a hearing for your case before an ALJ…payment of damages.

Nothing contained in Section 3-102 shall prohibit the owner of an owner-occupied residential building with 4 or fewer units (including the unit in which the owner resides) from making decisions regarding whether to rent to a person based upon that person’s sexual orientation.

The person entitled to the possession of lands or tenements may be restored thereto…When any property is subject to the provisions of the Condominium Property Act, the owner of a unit fails or refuses to pay when due his or her proportionate share of the common expenses of such property, or of any other expenses lawfully agreed upon or any unpaid fine.

A unit of local government, as defined in Section 1 of Article VII of the Illinois Constitution, shall not enact, maintain, or enforce an ordinance or resolution that would have the effect of controlling the amount of rent charged for leasing private residential or commercial property.

Upon termination of the tenancy, property or money held by the landlord as a security deposit shall be returned to the tenant within 30 days after the tenant has vacated their dwelling…date the statement showing estimated costs was furnished to the tenant.

Every tenant is entitled to the covenant of quiet enjoyment. The landlord may not interfere with the tenant’s quiet enjoyment, for example, by entering the premises without the tenant’s permission or as provided in the parties’ lease.

In both oral and written contracts, governing the tenancies is an implied warranty of habitability which is fulfilled by substantial compliance with the pertinent provisions of the Chicago building code.

A reasonable late fee may be imposed and collected by an owner for each service period that an occupant does not pay rent when due under a rental agreement, provided that the due date for the rental payment is not earlier than the day before the first day of the service period to which the rental payment applies. No late payment fee shall be assessed unless the rental fee remains unpaid for at least 5 days after the date specified in the rental agreement for payment of the rental fee.

…a lessor of residential real property who has received a security deposit from a lessee to secure the payment of rent or to compensate for damage to the leased premises may not withhold any part of that deposit as reimbursement for property damage unless the lessor has, within 30 days of the date that the lessee vacated the leased premises or within 30 days of the date the lessee’s right of possession ends, whichever is later, furnished to the lessee, by personal delivery, by postmarked mail directed to his or her last known address, or by electronic mail to a verified electronic mail address provided by the lessee, an itemized statement of the damage allegedly caused to the leased premises and the estimated or actual cost for repairing or replacing each item on that statement, attaching the paid receipts, or copies thereof, for the repair or replacement. If the lessor utilizes his or her own labor to repair or replace any damage or damaged items caused by the lessee, the lessor may include the reasonable cost of his or her labor to repair or replace such damage or damaged items. If estimated cost is given, the lessor shall furnish to the lessee, delivered in person or by postmarked mail directed to the last known address of the lessee or another address provided by the lessee, paid receipts, or copies thereof, within 30 days from the date the statement showing estimated cost was furnished to the lessee, as required by this Section. If a written lease specifies the cost for cleaning, repair, or replacement of any component of the leased premises or any component of the building or common areas that, if damaged, will not be replaced, the lessor may withhold the dollar amount specified in the lease. Costs specified in a written lease shall be for damage beyond normal wear and tear and reasonable to restore the leased premises to the same condition as at the time the lease began. The itemized statement shall reference the dollar amount specified in the written lease associated with the specific building component or amenity and include a copy of the applicable portion of the lease. Deductions for costs or values not specified in the lease shall otherwise comply with the requirements of this Section. If no such statement and receipts, or copies thereof, are furnished to the lessee as required by this Section, the lessor shall return the security deposit in full within 45 days of the date that the lessee vacated the premises, delivered in person or by postmarked mail directed to the last known address of the lessee or another address provided by the lessee. If the lessee fails to provide the lessor with a mailing address or electronic mail address, the lessor shall not be held liable for any damages or penalties as a result of the lessee’s failure to provide an address.

(a) As used in this Section, “electronic funds transfer” means a transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer’s account, including, but not limited to, through the use of an automated clearing house system. (b) A landlord shall not require a tenant or prospective tenant to remit any amount due to the landlord under a residential lease, renewal, or extension agreement by means of an electronic funds transfer, including, but not limited to, an electronic funds transfer system that automatically transfers funds on a regular, periodic, and recurring basis. (c) Beginning 90 days after the effective date of this amendatory Act of the 103rd General Assembly, a landlord who violates this Section is guilty of an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. (d) This Section applies to leases or agreements executed after the effective date of this amendatory Act of the 103rd General Assembly.

It is a civil rights violation for an owner or any other person , or for a real estate broker or salesman, because of unlawful discrimination, familial status, immigration status, source of income, or an arrest record, as defined under subsection (B-5) of Section 1-103, to:

(A) Transactions. Refuse to engage in a real estate transaction with a person or to discriminate in making available such a transaction; (B) Terms. Alter the terms, conditions or privileges of a real estate transaction or in the furnishing of facilities or services in connection therewith; (C) Offers. Refuse to receive or to fail to transmit a bona fide offer in a real estate transaction from a person; (D) Negotiation. Refuse to negotiate a real estate transaction with a person; (E) Representations. Represent to a person that real property is not available for inspection, sale, rental, or lease when in fact it is so available, or to fail to bring a property listing to the person’s attention, or to refuse to permit the person to inspect real property; (F) Publication of Intent. Make, print, circulate, post, mail, publish or cause to be made, printed, circulated, posted, mailed, or published any notice, statement, advertisement or sign, or use a form of application for a real estate transaction, or make a record or inquiry in connection with a prospective real estate transaction, that indicates any preference, limitation, or discrimination based on unlawful discrimination or unlawful discrimination based on familial status, immigration status, source of income, or an arrest record, or an intention to make any such preference, limitation, or discrimination; (G) Listings. Offer, solicit, accept, use or retain a listing of real property with knowledge that unlawful discrimination or discrimination on the basis of familial status, immigration status, source of income, or an arrest record in a real estate transaction is intended.