Illinois enacts new law limiting rental fees and enhancing tenant protections

Evanston's City Council has taken significant steps to protect tenants with the introduction of new rental regulations aimed at clarifying fees and responsibilities for landlords. During the recent meeting on April 4, 2025, council members discussed the implications of these reforms, which are designed to enhance transparency and fairness in rental agreements.

One of the key changes involves the limitation of late fees. Landlords can no longer charge more than $25 for late rent payments if the monthly rent is $1,600 or less. For rents exceeding this amount, the late fee remains capped at $25, plus an additional 5% of the rent. This reform aims to prevent excessive charges that could burden tenants facing financial difficulties.

Additionally, the new regulations require landlords to provide clear explanations for any fees associated with rental applications, credit checks, and moving costs. If a landlord imposes a fee, they must detail its purpose, ensuring tenants understand what they are paying for. Failure to comply with these rules could result in tenants being able to sue for damages equivalent to two months' rent.

The meeting also addressed security deposits, which cannot exceed 1.5 times the monthly rent. Landlords are mandated to keep these deposits in a bank account located in Illinois and must return them within 21 days after a tenant moves out. If a landlord fails to return the deposit, tenants are encouraged to seek legal recourse.

Furthermore, landlords are now required to disclose essential information to tenants, including their contact details, any violations related to the property, and potential hazards such as lead exposure or pest infestations. This transparency is crucial for tenant safety and informed decision-making.

These reforms represent a significant shift in tenant rights in Evanston, aiming to create a more equitable rental market. As these regulations take effect, tenants are encouraged to familiarize themselves with their rights and seek assistance if they encounter issues with their landlords. The City Council's commitment to tenant protection reflects a proactive approach to housing stability in the community.