Illinois Landlord-Tenant Law 2026 Complete Guide: 765 ILCS 710 Security Deposits, Chicago RLTO, Cook County RTLO, 5-Day Notice, and Statewide Compliance

1. Illinois Landlord-Tenant Law: 2026 Overview

Illinois residential landlord-tenant law is governed by a layered set of statutes and local ordinances that varies significantly depending on the building's location and size. The key sources of law are:

• 765 ILCS 710 (Security Deposit Return Act) — the statewide baseline; applies to all residential buildings with 5 or more units anywhere in Illinois. Sets the 30-day return deadline and 2× penalty for wrongful withholding.
• 765 ILCS 730 (Security Deposit Interest Act) — requires annual interest payments on security deposits for 25+ unit buildings in municipalities with 25,000+ population.
• 765 ILCS 720 (Rent Control Preemption Act, 1997) — bars every Illinois municipality from enacting rent control. No rent control anywhere in the state.
• 735 ILCS 5/9-101 et seq. (Forcible Entry and Detainer Act) — governs eviction procedures statewide, including the 5-day pay-or-quit notice (§9-209).
• Chicago RLTO (Chapter 5-12 of Chicago Municipal Code) — applies to most Chicago residential tenancies; adds federally insured account requirements, 14-day receipt obligation, annual interest, and stronger penalty structure. Amended in 2021 to add just-cause non-renewal and relocation assistance provisions.
• Cook County RTLO (Cook County Residential Tenant and Landlord Ordinance, effective June 1, 2021) — applies to Cook County suburbs not covered by a municipal RLTO; brings RLTO-equivalent protections to the Chicago suburbs for the first time.
• Evanston RLTO — Evanston's own local ordinance, separate from both the Chicago RLTO and Cook County RTLO, with its own deposit cap and notice requirements.

Illinois does NOT have a state-level Uniform Residential Landlord and Tenant Act (URLTA). Landlord-tenant law in downstate Illinois (Peoria, Champaign, Bloomington, Decatur, etc.) is governed solely by the 765 ILCS statutes and general contract/common law — without any local RLTO. Chicago and Cook County have gone considerably further.

Which Law Applies to Your Building?

2. 765 ILCS 710: Security Deposit Return Act — Statewide (5+ Units)

765 ILCS 710 (the Illinois Security Deposit Return Act) is the statewide baseline security deposit law. It establishes minimum requirements that apply to every residential building with 5 or more units in Illinois — regardless of whether the building is in Chicago, Joliet, Rockford, or a small downstate town.

2.1 Scope: 5+ Unit Buildings Only

The Act explicitly applies to "the retention of a residential security deposit by a lessor of a building containing 5 or more residential units." Buildings with 1–4 units fall outside the Act entirely. For buildings with 5+ units that are also located in Chicago, the Chicago RLTO governs — not 765 ILCS 710 — because the RLTO sets stricter requirements and the more specific local ordinance supersedes the general state statute for Chicago tenancies.

2.2 No Deposit Cap Statewide

765 ILCS 710 imposes no limit on the amount of a security deposit. Illinois is among the majority of states (alongside Texas, Florida, and Indiana) that have no statutory deposit cap. The market typically imposes its own ceiling: Chicago landlords almost universally collect 1 month's rent as a deposit; downstate landlords sometimes collect 1.5 months for furnished or high-risk situations. There is nothing preventing a landlord from charging more, but large deposits are difficult to collect in a competitive market.

2.3 The 30-Day Single-Trigger Return Rule

The core obligation under 765 ILCS 710 is simple: the landlord must return the security deposit within 30 days after the tenant vacates the property. This is a single-trigger deadline — the 30-day clock starts when the tenant vacates, not when the landlord receives a written forwarding address.

This differs from Massachusetts (dual-trigger: requires both vacancy AND receipt of forwarding address) and is more similar to Texas (single trigger, 30 days after vacancy plus forwarding address) and California (21 days from vacancy). The Illinois single trigger means there is no ambiguity about when the clock starts: when the tenant's keys are returned or they physically vacate, the 30-day window opens.

2.4 Itemized Statement and Repair Documentation

If the landlord makes any deduction from the security deposit, they must provide the tenant with a written itemized statement listing each deduction and its dollar amount. Along with the itemized statement, the landlord must include copies of written statements from contractors or repair vendors documenting the actual cost of each repair claimed, or written cost estimates if the actual repair has not yet been completed at the time of the 30-day return deadline.

Allowable deductions include:

• Unpaid rent lawfully owed at the time of vacating.
• Costs to repair damage caused by the tenant beyond normal wear and tear, documented with receipts or estimates.
• Other charges expressly authorized by the lease.

Landlords may NOT deduct for normal wear and tear (carpet wear from normal use, minor wall scuffs, faded paint), cleaning if the unit was left in reasonably clean condition, or pre-existing damage present at the time of move-in.

2.5 The 2× Penalty: Mandatory, Not Discretionary

If the landlord fails to return the deposit within 30 days — or returns it without the required itemized statement and receipts — the landlord is liable for two times the amount of the security deposit, plus the tenant's reasonable attorney fees and court costs. Illinois courts have treated this as a mandatory penalty: once a violation is established, the 2× damages are automatic. The landlord cannot argue that the delay was minor or inadvertent to reduce the penalty.

On a typical Chicago 1-bedroom deposit of $1,800, a violation exposes the landlord to $3,600 in statutory damages plus several thousand dollars in attorney fees — a total liability well in excess of the original deposit. For large multi-unit buildings, the aggregate exposure from multiple simultaneously violated tenancies can be severe.

2.6 What 765 ILCS 710 Does NOT Require

Critically, 765 ILCS 710 does NOT require:

• A separate dedicated bank account for the deposit (unlike Chicago RLTO and Cook County RTLO).
• Annual interest payments on the deposit (that is 765 ILCS 730's job, for 25+ unit buildings in large cities).
• A written receipt acknowledging the deposit at the time of collection.
• Any specific form of notice at the start of the tenancy regarding the deposit.

Landlords who own 5-24 unit buildings in smaller Illinois cities (under 25,000 population) face only the 30-day return obligation and the 2× penalty. Landlords who own 25+ unit buildings in larger Illinois cities also face the interest-payment obligation under 765 ILCS 730 (discussed next).

3. 765 ILCS 730: Security Deposit Interest Act — 25+ Units in Large Cities

765 ILCS 730 (the Illinois Security Deposit Interest Act) overlays the 765 ILCS 710 baseline with an interest-payment obligation for the largest residential buildings in Illinois' most populous cities.

3.1 Who Must Pay Interest

The Act applies to "any person, firm or corporation receiving a security deposit from a tenant of residential real property consisting of 25 or more units" located in "a municipality with a population of 25,000 or more." Cities covered include (among others):

• Chicago (~2.7 million) — though Chicago RLTO governs Chicago deposits, not 765 ILCS 730
• Aurora (~200,000) — all 25+ unit buildings covered
• Joliet (~148,000) — all 25+ unit buildings covered; see our Joliet rent increase guide
• Naperville (~149,000) — all 25+ unit buildings covered
• Rockford (~147,000) — all 25+ unit buildings covered; see our Rockford rent increase guide
• Elgin (~115,000) — all 25+ unit buildings covered
• Springfield (~114,000) — all 25+ unit buildings covered; see our Springfield IL rent increase guide
• Peoria (~113,000) — all 25+ unit buildings covered
• Champaign (~88,000) — all 25+ unit buildings covered
• Waukegan (~87,000) — all 25+ unit buildings covered
• Evanston (~73,000) — 25+ unit buildings covered (though Evanston RLTO may also apply)

Note that Chicago buildings are governed by the Chicago RLTO interest requirements, not by 765 ILCS 730. The practical significance of 765 ILCS 730 is primarily for large apartment buildings in Joliet, Rockford, Springfield, Aurora, Naperville, and other large Illinois cities outside Chicago and Cook County suburbs.

3.2 The Interest Rate and When It Must Be Paid

The interest rate under 765 ILCS 730 is set annually by the Illinois Department of Financial and Professional Regulation (IDFPR). The rate is published each year and should be checked by landlords at the start of each calendar year; it has varied from under 1% in the low-rate environment of the early 2020s to potentially higher rates as market conditions change.

Interest must be paid to the tenant:

• By January 31 of the following year, for deposits held throughout the full prior calendar year.
• Within 30 days of the anniversary of the date the deposit was received, for deposits received mid-year (after August 1).

Landlords may pay the interest in cash, by check, or by crediting the interest against the tenant's monthly rent. Keep a record of each interest payment to document compliance.

3.3 Penalty for Non-Payment

A landlord who fails to pay the required annual interest within the statutory time frame is liable for $100 plus the tenant's reasonable attorney fees. This is a relatively modest penalty compared to the 2× deposit penalty under 765 ILCS 710, but it creates an independent cause of action that a tenant's attorney can bring in small claims court with minimal cost. In a 25+ unit building where interest is not paid to any tenant, the aggregate $100 × 25+ units = $2,500+ in statutory damages plus attorney fees can add up quickly.

4. Chicago RLTO §5-12-080: Security Deposits in Chicago

The Chicago Residential Landlord and Tenant Ordinance (Chicago Municipal Code Chapter 5-12, commonly called the RLTO) has been Chicago's tenant-protection ordinance since 1986. Its security deposit provisions (§5-12-080) are significantly more detailed and more demanding than the statewide 765 ILCS statutes.

4.1 Who the Chicago RLTO Covers

The Chicago RLTO applies to all residential rental units within Chicago city limits except:

• Owner-occupied buildings with 6 or fewer units (the most commonly invoked exception — a landlord who lives in one unit of a 6-flat is exempt from RLTO for all other 5 units).
• Units in buildings where transient occupancy is the norm (hotels/motels operating primarily for transient guests).
• Units provided by educational institutions for their students.
• Certain government-owned or subsidized housing that has its own regulatory regime.

If the RLTO applies to your building, it supersedes the statewide 765 ILCS 710 and 765 ILCS 730. Chicago landlords follow the RLTO, not the general Illinois statutes, for security deposits and eviction notice requirements.

4.2 The Four RLTO Security Deposit Obligations

Obligation 1: Federally Insured Interest-Bearing Account

Under Chicago RLTO §5-12-080, the landlord must hold the security deposit in a federally insured interest-bearing account at a financial institution located in Illinois. The account must be separate from the landlord's own funds — no commingling. Unlike Massachusetts (which requires a separate account per tenancy), Chicago practice typically allows landlords to hold all tenant deposits in a single deposit account, as long as it is dedicated to tenant deposits and separate from operating funds.

Obligation 2: 14-Day Written Receipt

Within 14 days of receiving the security deposit, the landlord must provide the tenant a written receipt stating:

1. The name and address of the financial institution holding the deposit.
2. The account number.
3. The current rate of annual interest.

This 14-day window is shorter and more demanding than 765 ILCS 710, which has no receipt requirement at all, and Massachusetts MGL c.186 §15B (30 days). Chicago landlords who collect a deposit at lease signing should issue the receipt immediately or schedule it as a calendar reminder for no later than 14 days from receipt. Failure to provide the receipt is itself a RLTO violation: the tenant may demand return of the deposit within 30 days if the receipt has not been provided.

Obligation 3: Annual Interest at Comptroller's Rate

The landlord must pay interest on the security deposit at the rate set annually by the Chicago City Comptroller. The Comptroller's rate is set based on the prevailing interest rates available on money-market accounts at Chicago financial institutions — it has historically tracked market rates closely, ranging from over 5% in the early 2000s to near-zero in the low-rate years (2009–2021) and back toward current market rates in recent years.

Interest must be paid to the tenant (or credited against rent) within 30 days after the end of each 12-month rental period. This means a lease that started on October 1, 2025 would have interest due by October 31, 2026 (30 days after the first 12-month period ends on September 30, 2026).

If the landlord fails to pay required interest:

• The tenant may deduct from rent an amount equal to twice the interest due; OR
• The tenant may sue to recover twice the interest plus attorney fees; OR
• If the tenant has made a written demand for the unpaid interest and the landlord has not paid within 14 days of the demand, the tenant may terminate the lease.

Obligation 4: 30-Day Return with Itemized Statement

Within 30 days after the tenant vacates, the landlord must return the deposit (minus deductions) along with a written itemized statement of any deductions. Receipts from contractors or vendors must be included for any repair deductions; written estimates are acceptable if actual repair costs are not yet finalized.

If no deductions are claimed, the deposit must simply be returned within 30 days — no documentation is required, but a brief transmittal letter is best practice.

4.3 RLTO Penalty Structure

Chicago RLTO §5-12-080 provides a strong penalty structure:

• Failure to provide the 14-day receipt: Tenant may demand return of deposit; if not returned within 30 days of demand, landlord owes the full 2× penalty.
• Failure to pay required annual interest: Tenant entitled to 2× the interest + attorney fees, or lease termination right (after 14-day demand).
• Wrongful withholding of deposit (failure to return within 30 days, or improper deductions): Landlord liable for TWO TIMES the amount wrongfully withheld PLUS the tenant's reasonable attorney fees. On a $2,000 Chicago deposit, this equals $4,000 in statutory damages plus attorney fees — a total exposure of $6,000-$10,000+ on a single unit.

The RLTO provides a private right of action in Circuit Court. Chicago Housing Court (Richard J. Daley Center, 50 W. Washington Street) handles most RLTO cases; cases involving amounts below the Circuit Court threshold may be filed in the Municipal Department.

4.4 Chicago-Specific Context: Why the Account and Receipt Requirements Matter

Chicago is America's third-largest city with approximately 2.7 million residents and roughly 1.5 million rental units — about 56% of Chicago households are renters. The density of rental units, the concentration of law school clinics (University of Chicago, Northwestern, Loyola, DePaul, IIT Chicago-Kent), and the strong tenant advocacy community (Metropolitan Tenants Organization, Lawyers Committee for Better Housing) make Chicago one of the more legally active landlord-tenant markets in the US. Tenants in Chicago are more likely to be represented in deposit disputes than in most downstate cities. For Chicago landlords, RLTO compliance is not optional.

5. Chicago RLTO: Just Cause for Non-Renewal and Relocation Assistance (2021 Amendment)

In 2021, the Chicago City Council passed Ordinance O2020-4550, effective September 11, 2021, substantially amending the Chicago RLTO to add new non-renewal and rent-increase notice requirements. This was a significant change for Chicago landlords of larger buildings.

5.1 Relocation Assistance for Non-Fault Non-Renewals

Under the 2021 amendment, a Chicago landlord who owns 7 or more dwelling units in Chicago must pay relocation assistance equal to one month's rent if:

• The landlord declines to offer a renewal lease to the tenant; AND
• The reason is not one of the enumerated just-cause grounds (i.e., the landlord is terminating the tenancy for reasons not attributable to the tenant's conduct).

Just-cause grounds that exempt the landlord from relocation assistance include: non-payment of rent (after 5-day notice); material lease violations (after written notice and opportunity to cure); the tenant's material misrepresentation on the rental application; tenant conduct causing damage to the unit, building, or other residents; criminal activity on or near the premises related to the tenant; and certain owner move-in situations subject to specific procedural requirements.

Who Counts the 7 Units: "Dwelling units" means all units owned by the same natural person, legal entity, or common ownership group anywhere within the City of Chicago. An individual who owns three separate 3-flat buildings in Chicago owns 9 units total and is subject to the relocation assistance requirement for non-fault non-renewals from any of those 9 units.

5.2 Notice Requirements for Lease Termination

Chicago RLTO also governs the advance notice required when a landlord terminates a tenancy or declines to renew a fixed-term lease:

These notice periods also apply to rent increase notifications: a landlord who wants to raise rent on renewal of a long-term tenancy must give 120 days' notice if the tenant has lived there more than 3 years. This is among the longest advance-notice requirements for rent increases in any US city — compare: California requires 30 days for increases under 10%; Oregon requires 90 days; New York requires 30-90 days by tenancy length.

5.3 Practical Implications for Chicago Landlords

A Chicago landlord of a 7+ unit building who wants a tenant out at the end of a 12-month lease for no fault of the tenant must:

1. Give written notice of non-renewal within the applicable notice period (30-120 days, depending on tenancy length).
2. Simultaneously (or within a reasonable time before the tenant vacates) pay the tenant one month's rent as relocation assistance.

Failure to pay relocation assistance when required is an RLTO violation that can be enforced by the tenant in Circuit Court, potentially with attorney fees. Chicago landlords who rely on end-of-lease non-renewals as a routine portfolio management tool must now budget for relocation costs or document just-cause grounds carefully.

6. Cook County RTLO: Cook County Suburbs (Effective June 1, 2021)

The Cook County Residential Tenant and Landlord Ordinance (RTLO) took effect June 1, 2021 and is one of the most important changes to Chicago-area landlord-tenant law in a generation. For the first time, residential tenants in Cook County suburbs — Skokie, Oak Park, Evanston (with its own RLTO), Des Plaines, Orland Park, Calumet City, Harvey, Cicero, Berwyn, and dozens of others — gained RLTO-equivalent security deposit and notice protections.

6.1 Who Is Covered by the RTLO

The RTLO applies to residential rental units anywhere in Cook County EXCEPT:

• Units in municipalities that have adopted their own local tenant ordinance: Chicago (has RLTO), Evanston (has own RLTO), and Mount Prospect.
• Units in owner-occupied buildings with 6 or fewer units total.
• Units in buildings where the landlord lives in the same building and it has 6 or fewer units (same owner-occupant exemption as Chicago RLTO).

In practice, almost every suburban Cook County rental building outside Chicago, Evanston, and Mount Prospect is now subject to the RTLO — whether in Skokie, Niles, Schaumburg, Cicero, Berwyn, Oak Lawn, Calumet City, South Holland, Markham, or the unincorporated Cook County areas between municipalities.

6.2 Key RTLO Security Deposit Requirements

• Interest-bearing account: Deposit must be held in a federally insured interest-bearing account (same as Chicago RLTO).
• 14-day written receipt: Written receipt within 14 days of collection, with bank name, address, account number, and interest rate.
• Annual interest: Must pay interest annually at the rate set by the Cook County Board of Commissioners.
• 30-day return + itemized statement: Return within 30 days after tenancy ends, with itemized deductions and repair receipts.
• Penalty: 2× deposit + attorney fees for wrongful withholding.

6.3 RTLO Notice Requirements for Termination

The RTLO also sets minimum notice periods for terminating a tenancy:

• Less than 6 months: 30 days.
• 6 months to 3 years: 60 days.
• More than 3 years: 120 days.

These are the same notice periods as Chicago RLTO, meaning landlords in covered Cook County suburbs now face the same advance-termination-notice obligations as Chicago landlords. This was a significant change from the pre-2021 status quo, when suburban Cook County landlords had no such notice obligation beyond the standard 30-day month-to-month termination.

6.4 RTLO Just Cause for Non-Renewal

The Cook County RTLO also requires just-cause for non-renewal of fixed-term leases: landlords who choose not to renew for non-fault reasons must either provide the applicable advance notice and pay one month's relocation assistance, or document a just-cause ground. The same just-cause categories apply as under Chicago RLTO (non-payment, lease violations, tenant misconduct, etc.).

6.5 RTLO Required Disclosure

Landlords subject to the RTLO must provide a written summary of the RTLO's rights and responsibilities to all new tenants at the time of lease signing. The Cook County Commission on Human Rights publishes the required summary, which must be given to the tenant and signed. Failure to provide the disclosure is itself an RTLO violation.

7. Evanston RLTO: Separate Local Ordinance

Evanston, located directly north of Chicago on Lake Michigan, has maintained its own Residential Landlord and Tenant Ordinance since the early 1990s — predating the Cook County RTLO by three decades. Because Evanston has its own RLTO, it is exempt from the Cook County RTLO. Evanston landlords follow the Evanston RLTO, not the Cook County RTLO.

7.1 Key Evanston RLTO Provisions

• Security deposit cap: Unlike Chicago RLTO (no cap), Evanston RLTO limits security deposits — landlords should consult the current Evanston RLTO text for the current cap, which has historically been set at 1.5 months' rent for unfurnished units.
• Interest-bearing account: Deposit must be held in a separate, federally insured interest-bearing account.
• Written receipt: Within 14 days of collection, written receipt with bank details and interest rate.
• Annual interest: Must pay interest at a rate set by the City of Evanston.
• 30-day return + itemized statement: Return deposit within 30 days of tenancy end with required documentation.
• Penalty: Wrongful withholding triggers the tenant's right to double the withheld amount plus attorney fees.
• Move-in inspection: Evanston RLTO requires the landlord to offer the tenant a pre-move-in inspection and provide a written checklist.

7.2 Evanston Rental Market

Evanston's rental market is driven primarily by Northwestern University (~22,000 enrolled students; one of the nation's top research universities; home of Kellogg School of Management, Pritzker School of Law, and Medill School of Journalism). Northwestern occupies the lakefront north campus and the downtown Evanston campus; the surrounding blocks of Davis Street, Orrington Avenue, and Noyes Street contain a high density of undergraduate and graduate student rentals. The September 1 lease-flip that characterizes Boston also applies to Evanston to a significant degree — September housing demand around Northwestern mirrors what Boston sees around its universities. 1BR 2026F in Evanston: approximately $1,300–$1,900 (south Evanston near Chicago boundary at the high end; north Evanston and Skokie borders lower).

8. Eviction Procedures: 5-Day Notice and Forcible Entry and Detainer

Illinois eviction is governed by the Forcible Entry and Detainer Act (735 ILCS 5/9-101 et seq.). Despite the archaic name — a relic of 19th-century common law — Illinois eviction is a relatively streamlined process compared to most states, with a 5-day notice period for non-payment that is shorter than many comparable states.

8.1 The 5-Day Notice to Pay Rent or Quit (735 ILCS 5/9-209)

For non-payment of rent, Illinois law requires the landlord to serve the tenant a written 5-day Notice to Pay Rent or Quit before filing an eviction action. The notice must:

• Be in writing.
• State the specific amount of rent claimed to be owed.
• Demand payment of the full amount due OR that the tenant vacate the premises within 5 days.
• Be served on the tenant by personal delivery, posting on the door of the unit, or another method authorized by 735 ILCS 5/9-211.

The 5-day period excludes Sundays and legal holidays (735 ILCS 5/9-211). A notice served on a Wednesday gives the tenant until the following Monday (excluding any intervening holidays) — effectively 7 calendar days if a weekend intervenes.

This is a pay-or-quit notice: if the tenant pays all rent claimed within 5 days, the landlord cannot proceed with eviction based on that notice. If the tenant neither pays nor vacates within 5 days, the landlord may file the eviction complaint.

8.2 Other Grounds for Termination Notices

• Month-to-month termination (no fault): 30-day advance written notice for most tenancies (unless a longer period applies under Chicago RLTO or Cook County RTLO based on tenancy length).
• Lease violation (other than non-payment): 10-day notice to cure or quit for material lease violations (735 ILCS 5/9-210); tenant has 10 days to remedy the violation before the landlord may file for eviction.
• Criminal activity or clear and present danger: 5-day notice to quit without opportunity to cure (certain specific situations under 735 ILCS 5/9-207.5).

8.3 Filing the Eviction Action in Circuit Court

After the notice period expires without compliance, the landlord files an Eviction Complaint in the Circuit Court of the county where the property is located:

• Cook County (Chicago and suburbs): Richard J. Daley Center, 50 W. Washington Street, Chicago (Chancery/Civil Division); or suburban Cook County Municipal Districts (Skokie, Bridgeview, Markham, Rolling Meadows, Maywood, etc.).
• Will County (Joliet area): Will County Courthouse, 14 W. Jefferson St., Joliet.
• Winnebago County (Rockford): Winnebago County Courthouse, 400 W. State St., Rockford.
• Sangamon County (Springfield): Sangamon County Complex, 200 S. Ninth St., Springfield.

The complaint is filed in the small claims or Municipal Department for most residential evictions. Filing fees vary by county (typically $70-$150 for a residential eviction in Cook County as of 2026). After filing, the court issues a summons; the sheriff or licensed process server serves the tenant. A hearing is typically scheduled 10-21 days after filing.

8.4 Typical Illinois Eviction Timeline

An uncontested Illinois eviction from notice to Sheriff lockout typically takes 3-5 weeks — significantly faster than New York (8-12 weeks), Massachusetts (8-12 weeks), or California (4-8 weeks), but somewhat slower than Texas (3-4 weeks) and Georgia (2-3 weeks).

8.5 Chicago RLTO Eviction Protections

Within Chicago, the RLTO adds protections that modify the bare-bones 735 ILCS eviction procedure:

• No retaliation: A landlord who files an eviction action within 12 months of a tenant exercising a legal right (reporting a housing code violation, organizing with other tenants, filing a lawsuit) faces a rebuttable presumption of retaliation (RLTO §5-12-150).
• Security deposit counterclaims: A tenant against whom an eviction is filed may raise RLTO security deposit violations as counterclaims; a landlord who improperly withheld a deposit may find their eviction judgment offset by the tenant's 2× damages counterclaim.
• Late fees: RLTO §5-12-140 limits late fees to $10 per month or 5% of the monthly rent (whichever is greater); late fees above the RLTO cap are unenforceable in Chicago.

9. Implied Warranty of Habitability and Repair-and-Deduct

Illinois courts have recognized an implied warranty of habitability in residential leases since Jack Spring, Inc. v. Little, 50 Ill. 2d 351 (1972), one of the landmark early US decisions recognizing this doctrine. The warranty requires landlords to maintain rental units in a condition suitable for human habitation throughout the tenancy.

9.1 Statewide Habitability Requirements

Illinois landlords must maintain:

• Effective waterproofing of walls, roof, and windows.
• Working plumbing, hot and cold water, and sewer connections.
• Adequate heat (Chicago: minimum 68°F when outdoor temperature is below 55°F during the heating season; state building codes set similar standards).
• Working electrical systems and adequate natural and artificial lighting.
• Freedom from rodent and insect infestation.
• Functioning smoke detectors (required by 425 ILCS 60, the Smoke Detector Act; Chicago has additional requirements).
• Compliance with applicable building and housing codes materially affecting health and safety.

9.2 Tenant Remedies for Habitability Violations

Illinois tenants have stronger remedies than many other states:

• Rent withholding: Under common law and RLTO, a tenant may withhold rent when the unit is materially uninhabitable. The withheld amount should reflect the diminished value of the unit — a Chicago court may allow a rent abatement of 20-50% for a serious habitability defect while the tenant continues to occupy.
• Repair-and-deduct: Under Chicago RLTO §5-12-110, a Chicago tenant may arrange for repairs and deduct the cost from rent, subject to limits (the deduction cannot exceed 1/2 of one month's rent per repair event). The tenant must first notify the landlord in writing and allow 14 days for the landlord to repair.
• Lease termination: For severe and material habitability failures, a tenant may terminate the lease and vacate, then sue for relocation damages.
• Code complaint: Tenant may file a complaint with the Chicago Department of Buildings (for Chicago units) or the local building department (for suburban Illinois units), triggering an inspection and potentially a notice of violation and fine to the landlord.

10. Anti-Retaliation

Illinois law prohibits landlord retaliation against tenants for exercising legal rights. In Chicago, the RLTO §5-12-150 provides the most clearly defined protection:

• A landlord may not retaliate against a tenant for: filing a code complaint; contacting a government agency about the unit's condition; organizing or joining a tenants' union; exercising any right under the RLTO; or testifying in a proceeding involving the landlord and another tenant.
• Retaliatory acts include: eviction, lease termination, rent increase, reduction of services, or interference with the tenant's quiet enjoyment.
• A rebuttable presumption of retaliation arises if the landlord acts adversely within 12 months of the tenant's protected activity. The landlord must then show a non-retaliatory reason for the adverse action.
• Remedy for RLTO retaliation: tenant may recover actual damages, 2 months' rent, or the cost of obtaining substitute housing plus 2 months' rent, whichever is greater, plus attorney fees.

Outside Chicago, Illinois courts apply the common-law doctrine against retaliatory eviction, which provides similar (though less precisely defined) protection. Landlords in downstate Illinois should avoid adverse action against tenants within the period following a code complaint or other exercise of tenant rights, as courts will scrutinize the timing carefully.

11. No Rent Control: 765 ILCS 720 and the Lift the Ban Campaign

Illinois has NO rent control anywhere in the state. The Illinois Rent Control Preemption Act (765 ILCS 720, enacted as Public Act 89-567 in 1997) bars every Illinois municipality from enacting, maintaining, or enforcing any ordinance or resolution controlling or limiting the amount of rent charged for privately-owned residential or commercial property. This preemption applies to Chicago, Evanston, Oak Park, and every other Illinois municipality without exception.

For the full history of the 765 ILCS 720 preemption, the Chicago "Lift the Ban" campaign legislative record (from 2019 through 2026), and what Chicago tenants do have under the RLTO, see our comprehensive guide: Illinois Rent Control Preemption 2026: 765 ILCS 720, Chicago Lift the Ban, Chicago RLTO, and Cook County RTLO.

Practical implications for Illinois landlords: you may increase rent at any time with proper notice. The Chicago RLTO sets the required notice period (30-120 days depending on tenancy length), but there is no cap on the amount of the increase. Chicago landlords may raise rents above inflation without restriction — a fundamentally different environment from California (AB 1482: 5%+CPI max 10%), Oregon (statewide cap: 7%+CPI 2026), New York City (RGB: 2.75%/5.25% 2025-2026 for RSL units), and DC (RHCSA: CPI+2% 2026). Illinois landlords pricing units at market rates have full pricing freedom.

See our city-specific rent increase guides for Illinois markets:

• Chicago IL rent increase 2026
• Joliet IL rent increase 2026
• Rockford IL rent increase 2026
• Springfield IL rent increase 2026

12. Chicago Rental Market 2026: Neighborhoods and Rent Trends

Chicago is America's third-largest city and one of the largest rental markets in the US, with approximately 2.7 million residents in the city and 9.5 million in the Chicago metropolitan area (MSA). Unlike New York and San Francisco, Chicago has not seen the extreme rent inflation of the past decade — it remains one of the relatively affordable major US markets, though rents have risen materially since 2020.

12.1 Chicago 2026 Rent Ranges by Neighborhood

12.2 Chicago Lease Dynamics

Unlike Boston (where 85%+ of leases flip on September 1), Chicago has a more dispersed lease-start calendar. May 1 and June 1 are common lease-start dates driven by the academic year at DePaul (Loop/Lincoln Park), Loyola, UIC, and Columbia College Chicago. September 1 is significant near Northwestern Medical School (Streeterville) and in Evanston. The overall Chicago market lacks a single dominant lease-start date, making vacancy management more predictable than in Boston but also meaning no single best-time to advertise.

13. Suburban Cook County and Collar Counties

The Chicago metropolitan area's suburban markets are governed by different rules depending on which county the property is in:

• Cook County suburbs (except Chicago, Evanston, Mount Prospect): Cook County RTLO applies (June 2021). Security deposit account/receipt/interest requirements; 30-120 day termination notices; just-cause for non-renewal.
• DuPage County (Naperville, Wheaton, Downers Grove, Elmhurst): No county RLTO; governed by 765 ILCS 710/730 + common law. No interest requirement for sub-25-unit buildings. 30-day month-to-month termination notice. No just-cause requirement for non-renewal.
• Will County (Joliet, Bolingbrook, Plainfield): No county RLTO; governed by 765 ILCS 710/730. 25+ unit buildings must pay annual interest. 5-day notice for non-payment. Standard month-to-month termination notice.
• Lake County (Waukegan, North Chicago, Gurnee, Winthrop Harbor near Naval Station Great Lakes): No county RLTO; 765 ILCS 710/730 governs. Important SCRA market because of Naval Station Great Lakes (see below).
• Kane County (Aurora, Elgin, St. Charles): No county RLTO; 765 ILCS 710/730. Aurora (~200,000 pop) is above the 25,000 threshold for 765 ILCS 730 interest requirement.

14. Military Installations and SCRA Obligations

Illinois has one major military installation with significant SCRA implications for landlords in the northern suburbs:

Naval Station Great Lakes (North Chicago, Lake County)

Naval Station Great Lakes is the Navy's ONLY RECRUIT TRAINING COMMAND — all active-duty Navy enlisted personnel who joined after 2001 completed basic training here. The installation serves approximately 40,000 military personnel, civilian employees, and dependents in the North Chicago / Waukegan / Gurnee corridor in Lake County, Illinois. For every recruit who passes through, there is a potential SCRA-protected tenant: servicemembers who rent housing near the base before or after deployment are protected by the Servicemembers Civil Relief Act (50 U.S.C. § 3901 et seq.).

Key SCRA provisions relevant to Illinois landlords near Great Lakes:

• Early lease termination: A servicemember may terminate a residential lease with 30 days' written notice after receiving Permanent Change of Station (PCS) orders or deployment orders of 90+ days. The landlord must return all prepaid rent and the security deposit within 30 days of the effective termination date.
• Eviction protection: A servicemember on active duty whose income is primarily from military pay may request a stay of eviction proceedings for up to 90 days.
• Rent cap: If the servicemember's monthly rent exceeds $4,177.58 (2026 adjusted figure; indexed annually), the SCRA rent cap provisions may not automatically apply — but landlords should verify the current threshold each year.
• Security deposit: SCRA-terminated tenants are entitled to full deposit return (less documented legitimate deductions) within 30 days, regardless of whether the state 765 ILCS 710 deadline would otherwise be triggered earlier or later.

Scott Air Force Base (Belleville, IL, across the river from St. Louis, Missouri) also generates SCRA-protected tenants in the Metro East area of southwestern Illinois. Scott hosts US Transportation Command (USTRANSCOM) HQ and Air Mobility Command, with approximately 13,000 military and civilian personnel.

15. Major Illinois Employers and Rental Demand Drivers

Illinois — and Chicago in particular — has one of the most diverse corporate headquarters concentrations in the US:

Chicago City Core and Near Suburbs

• AbbVie (North Chicago, Lake County; NYSE:ABBV; Fortune ~75; ~50,000 worldwide; ~$21B US revenue FY2024): Humira was the world's best-selling drug for a decade (2013-2022); Skyrizi and Rinvoq now lead the dermatology/rheumatology pipeline. AbbVie's North Chicago campus is a major employer in Lake County, generating significant rental demand around Waukegan, Gurnee, and North Chicago — many near Naval Station Great Lakes. Acquired Allergan (Botox) for $63B in 2020.
• Walgreens Boots Alliance (Deerfield, Lake County; NASDAQ:WBA; ~225,000 worldwide; America's second-largest pharmacy chain): Deerfield corporate campus (~10,000 employees) drives significant rental demand in Deerfield, Northbrook, Wheeling, and surrounding Lake/Cook County suburban markets.
• Caterpillar (Deerfield HQ; NYSE:CAT; Fortune ~50; ~113,000 worldwide; revenues ~$64B FY2024): Relocated corporate headquarters from Peoria to Deerfield in 2022; the move brought ~230+ executive-level positions and increased demand for upscale rentals in northern suburban Cook and Lake County.
• United Airlines (Willis Tower area, Chicago Loop; NASDAQ:UAL; Fortune ~40; ~100,000 worldwide; ~25,000+ Chicago-metro employees): United's largest hub is O'Hare; headquarters is in the Loop; the airline is among Chicago's largest corporate employers and a significant driver of Streeterville/River North/West Loop rental demand for airline professionals.
• CME Group (20 S. Wacker Dr., Chicago; NASDAQ:CME; world's largest derivatives exchange by notional value; ~3,000 employees): The financial capital concentration in Chicago's Loop (CME, Cboe Global Markets, Northern Trust, BMO, and dozens of trading firms) creates sustained demand for high-end Loop-adjacent rentals (Streeterville, River North, West Loop, South Loop).
• Exelon (10 S. Dearborn St., Chicago; NASDAQ:EXC; Fortune ~125; ~31,000 employees; parent of ComEd, PECO, BGE, Pepco): Exelon's Chicago headquarters and ComEd's Illinois operations employ thousands in the Loop and in suburban communities along ComEd's service territory.
• Blue Cross Blue Shield of Illinois / HCSC (300 E. Randolph St., Chicago; private mutual; largest mutual insurance company in the US; ~25,000 employees): Headquartered in a distinctive blue glass tower on Randolph Street; significant employer in the East Loop / Streeterville corridor.
• Allstate Insurance (2775 Sanders Road, Northbrook; NYSE:ALL; Fortune ~83; ~53,000 worldwide): Major suburban employer in Northbrook; drives rental demand in Glenview, Deerfield, Wheeling, and the North Shore suburbs.
• ADM (Archer Daniels Midland) (Chicago (moved from Decatur 2014); NYSE:ADM; Fortune ~51; ~42,000 worldwide; ~$85B annual revenue): Global agricultural commodities processor; Chicago headquarters in the Loop.
• Kraft Heinz (200 E. Randolph St., Chicago; NASDAQ:KHC; Fortune ~125; ~37,000 worldwide): Relocated to Chicago from Pittsburgh in 2015; Kool-Aid, Oscar Mayer, Velveeta, Heinz brands.
• Mondelez International (905 W. Fulton Market, Chicago; NASDAQ:MDLZ; Fortune ~175; ~90,000 worldwide; Oreo/Cadbury/Nabisco/Triscuit/Wheat Thins): Major corporate presence in the Fulton Market / West Loop district.
• Hyatt Hotels (150 N. Riverside Plaza, Chicago; NYSE:H; ~140,000+ worldwide): Corporate headquarters in downtown Chicago.

Healthcare and Universities

• Northwestern Medicine (Streeterville/Gold Coast; ~33,000 employees; Northwestern Memorial Hospital Level I Trauma; Lurie Children's Hospital; Prentice Women's Hospital): One of Chicago's largest employer clusters; drives rental demand in Streeterville, Gold Coast, and River North for medical and nursing staff.
• Rush University Medical Center (1620 W. Harrison St., Near West Side; ~12,000 employees; Level I Trauma): Near the United Center and the Illinois Medical District; drives rental demand in West Loop, Greektown, and West Town.
• University of Chicago Medical Center (Hyde Park; ~16,000 employees; Level I Trauma; NCI-designated Comprehensive Cancer Center): Drives rental demand in Hyde Park, Woodlawn, and the South Side.
• DePaul University (2 campuses: Lincoln Park and Loop; ~23,000 enrolled; largest Catholic university in the US): Lincoln Park campus drives rental demand in Lincoln Park, Sheffield, and Wrigleyville.
• Loyola University Chicago (Rogers Park/Edgewater; ~15,000 enrolled; Loyola Medical Center at Maywood; Stritch School of Medicine): Rogers Park and Edgewater are Loyola's residential corridor.
• University of Illinois at Chicago (UIC) (Near West Side; ~34,000 enrolled; R1 research university; UIC College of Medicine = largest US medical school enrollment): Near the Illinois Medical District; generates rental demand in Pilsen, Little Village, and the Near West Side.

16. IL vs. Other States: Key Differences at a Glance

17. 10 Most Costly Illinois Landlord Mistakes in 2026

1. Failing to return the deposit within 30 days under 765 ILCS 710

   The most common and most expensive downstate Illinois landlord error. The 30-day clock starts when the tenant vacates — not when you finish the renovation, not when you find a new tenant. Miss it and the mandatory 2× penalty applies: on a $1,200 deposit, that's $2,400 in statutory damages plus attorney fees. Set a calendar reminder the day the tenant hands in keys.

2. Chicago landlords: not providing the 14-day written receipt under RLTO

   Chicago RLTO §5-12-080 requires a written receipt within 14 days of collecting the deposit, with the bank name, address, account number, and interest rate. Many small Chicago landlords skip this step. Failure to provide the receipt gives the tenant the right to demand return of the deposit — and failure to comply with that demand within 30 days triggers the 2× penalty.

3. Keeping the deposit in a commingled personal account (Chicago/Cook County)

   Under Chicago RLTO and Cook County RTLO, the deposit must be in a federally insured interest-bearing account separate from the landlord's personal funds. Using a personal checking account — even temporarily — is a clear RLTO violation. Open a dedicated deposit account before collecting any deposit from Chicago or Cook County tenants.

4. Ignoring the Cook County RTLO for suburban buildings (post-June 2021)

   Many Cook County suburban landlords who managed properties for decades before June 2021 still operate as if no local RLTO applies. They do not provide the required written receipt, do not pay annual interest, and do not follow the 30-120 day notice requirements. The RTLO has been in effect since June 1, 2021 — violations expose the landlord to 2× deposit + attorney fees in every tenancy.

5. Failing to pay annual interest on deposits (765 ILCS 730 + RLTO)

   For 25+ unit buildings in large Illinois cities, or any Chicago/Cook County building subject to RLTO/RTLO, annual interest on security deposits is mandatory. Forgetting to pay the (often small) annual interest creates a separate cause of action: $100 + attorney fees under 765 ILCS 730 for downstate buildings, or 2× interest + attorney fees (or lease termination right) under Chicago RLTO. Small amounts compound into significant liability across multi-unit buildings.

6. Not counting units correctly for RLTO just-cause applicability

   The Chicago RLTO 2021 amendment's relocation assistance requirement applies to landlords of 7 or more dwelling units in Chicago. Some landlords miscalculate by counting only one building when they own interests in multiple buildings. An LLC owning 3 three-flats (= 9 units total) must pay one month's relocation assistance for non-fault non-renewals. The $1,800-$2,400 per-unit cost adds up quickly for portfolio landlords doing routine lease cycling.

7. Serving the 5-day notice before all rent is actually due

   A 5-day notice served before the rent was legally due — e.g., served on the 1st when rent is due on the 1st with a grace period through the 5th — can be challenged as premature and void. Illinois courts have dismissed eviction actions where the notice was served before the debt was technically owed. Serve the 5-day notice after the grace period (if any) specified in the lease has elapsed.

8. Deducting for normal wear and tear from the security deposit

   Normal wear and tear is not a recoverable deduction under 765 ILCS 710 or Chicago RLTO. Painting (in a long tenancy), minor wall scuffs, carpet wear from normal use, small nail holes — all are wear and tear. Courts regularly reject landlord deductions for these items, and a tenant who wins even one item on a 2× penalty claim recovers more than the amount withheld. Document pre-tenancy condition with photos and a move-in checklist, and don't deduct for anything that can plausibly be characterized as wear and tear.

9. Not including repair receipts with the itemized deduction statement

   Both 765 ILCS 710 and Chicago RLTO require repair receipts (or written estimates) to accompany any itemized deduction for repair costs. A landlord who deducts for "carpet replacement $800" without attaching an invoice from the carpet company has failed the documentation requirement. Even if the repair was legitimate, lack of documentation gives the tenant grounds to challenge the deduction and potentially recover 2× the deducted amount.

10. Chicago: giving insufficient advance notice for long-term tenants

    Many Chicago landlords do not realize that the RLTO requires 60 days' notice for tenants of 6 months to 3 years and 120 days' notice for tenants of more than 3 years. Giving only 30 days' notice to end a 4-year tenancy is an RLTO violation. If the landlord also fails to pay relocation assistance (for 7+ unit buildings), the tenant may have two independent claims: inadequate notice AND failure to pay relocation assistance. For long-term tenants, start the termination clock at least 4-5 months before desired move-out date to provide the 120-day notice safely.

18. 10-Step Illinois Security Deposit Compliance Checklist

1. Determine which law applies. Is the building in Chicago? Cook County suburb? Evanston? Downstate with 25+ units in a 25,000+ city? Or a downstate 5-24 unit building? Each category triggers different obligations. Use the table in Section 1.
2. Open the right account. For Chicago RLTO or Cook County RTLO buildings: open a dedicated federally insured interest-bearing account at an Illinois financial institution before collecting any deposit. Label it for the tenant's name or unit (your bank may require this). For downstate 765 ILCS 710 buildings (5-24 units, smaller cities): no separate account required, but it is best practice.
3. Issue the written receipt within 14 days. For Chicago RLTO and Cook County RTLO: draft a receipt template and issue it within 14 days of receiving the deposit. Include: bank name, branch address, account number, and current annual interest rate. Keep a copy signed by the tenant, or send by certified email with delivery confirmation.
4. Set an annual interest reminder. For 765 ILCS 730 buildings (25+ units, large cities): interest due by January 31. For Chicago RLTO buildings: interest due within 30 days after each 12-month rental period ends. Calendar this for every tenancy the day the deposit is collected.
5. Conduct a move-in inspection and create a written checklist. Document the unit condition at move-in with photographs and a written checklist signed by both parties. Retain this for the entire tenancy plus at least 2 years after move-out. It is your primary defense against tenant damage claims.
6. Use the correct notice period when terminating. For Chicago RLTO and Cook County RTLO: 30 days (under 6 months), 60 days (6 months–3 years), 120 days (3+ years). For downstate: standard 30-day month-to-month notice. Do not give less notice than required — the eviction will be dismissed if you do.
7. For Chicago 7+ unit buildings: assess relocation assistance before non-renewal. If the tenant is not at fault and you own 7+ Chicago units, budget one month's rent for relocation assistance at each non-fault non-renewal. Factor this into lease cycling and tenant management decisions.
8. Set the 30-day return deadline in your calendar the day the tenant vacates. Mark the date the tenant returns keys and vacates. The 30-day deadline runs from this date (single trigger in Illinois — no forwarding-address caveat). Aim to return within 21 days to create margin.
9. Prepare the itemized statement with receipts before sending the deposit. For any deductions: get the repair invoices and assemble the itemized statement BEFORE the 30-day deadline. If repairs are not yet done, include written estimates. Send by certified mail or hand-deliver with return receipt.
10. Retain all compliance documentation for 5 years. Keep: copy of original deposit receipt; bank account statements; interest payment records; move-in and move-out inspection checklists; photographs; repair invoices; the returned deposit transmittal letter with itemized statement and receipts. This evidence is essential if a tenant files an RLTO or 765 ILCS 710 claim. Illinois courts have entered judgment against landlords for failing to produce documentation of compliance.

19. FAQ

Does Illinois have a security deposit cap in 2026?

No. Illinois has no statewide security deposit cap, and neither the Chicago RLTO nor the Cook County RTLO cap the deposit amount. Illinois landlords may collect any amount of security deposit the market will bear. In practice, Chicago landlords almost universally collect 1 month's rent (matching the competitive market norm); some downstate landlords collect 1.5 months for furnished or higher-risk situations. Compare: California (1 month since SB 267), Massachusetts (1 month under MGL c.186 §15B), Michigan (1.5 months under MCL §554.602), Arizona (1.5 months under A.R.S. §33-1321), North Carolina (2 months for month-to-month). Evanston's RLTO historically limited deposits to 1.5 months for unfurnished units — Evanston landlords should check the current Evanston ordinance text.

What are the 765 ILCS 710 penalty rules for failing to return a deposit?

Under 765 ILCS 710, a landlord who fails to return the security deposit within 30 days of the tenant vacating — or who fails to include the required itemized statement and repair documentation — is liable for 2× the security deposit amount plus the tenant's reasonable attorney fees and court costs. This is mandatory: once a court finds a violation of the Act, it must award the double-damages penalty. There is no lesser remedy. On a $1,500 deposit, a violation yields $3,000 in statutory damages plus attorney fees. 765 ILCS 710 applies to all residential buildings with 5 or more units statewide. Buildings in Chicago are governed by the Chicago RLTO (which has the same 2× penalty).

What does the Chicago RLTO require for security deposits in 2026?

The Chicago RLTO (§5-12-080) requires: (1) deposit held in a federally insured interest-bearing Illinois account, separate from landlord's personal funds; (2) written receipt within 14 days of receipt, with bank name, address, account number, and interest rate; (3) annual interest at the City Comptroller's rate, paid within 30 days after each 12-month rental period; (4) return within 30 days of tenant vacating, with itemized statement and repair receipts. Penalty for wrongful withholding: 2× the withheld amount + attorney fees. Penalty for failure to pay interest: tenant may deduct 2× interest from rent, or terminate lease after 14-day demand. These requirements supersede 765 ILCS 710 for Chicago buildings.

What is the Cook County RTLO and who does it cover?

The Cook County Residential Tenant and Landlord Ordinance (RTLO) took effect June 1, 2021. It applies to residential rental properties in Cook County except in Chicago (has own RLTO), Evanston (has own RLTO), and Mount Prospect (has own ordinance). Owner-occupied buildings with 6 or fewer units are exempt. Covered buildings must: hold deposit in interest-bearing account; provide written receipt within 14 days; pay annual interest; return deposit within 30 days; provide RTLO summary to tenants at lease signing; give 30-120 day termination notice (depending on tenancy length); and provide just-cause or pay relocation assistance for non-fault non-renewals. Penalty: 2× deposit + attorney fees for wrongful withholding. This was a major change for Cook County suburbs, which previously had only the statewide 765 ILCS rules.

How long does an Illinois landlord have to give notice before filing for eviction for non-payment of rent?

Illinois law requires a 5-day Notice to Pay Rent or Quit (735 ILCS 5/9-209) before filing an eviction action for non-payment. The 5-day period excludes Sundays and legal holidays. After the 5 days expire without payment or vacating, the landlord may file an Eviction Complaint (formerly "Forcible Entry and Detainer") in Circuit Court. The 5-day period is one of the shorter notice periods in the US — longer than California/Texas/Florida (3 days) but shorter than Washington/New York/Minnesota (14 days). Chicago RLTO does not change the 5-day notice period, but it does prohibit the landlord from refusing a tenant's tender of all rent due within the 5-day window.

Does Illinois have statewide rent control in 2026?

No. Illinois has no rent control anywhere in the state. The Illinois Rent Control Preemption Act (765 ILCS 720, 1997) bars every Illinois municipality from enacting or enforcing any rent control ordinance. Chicago remains the largest US city without rent control despite sustained advocacy. Multiple state legislature bills (including HB 3202 (2021), SB 1150 (2023), HB 2862 (2023)) to repeal 765 ILCS 720 have failed. As of September 2026, no Illinois city has rent control, and Illinois landlords have full pricing freedom subject to RLTO/RTLO notice requirements. See our full guide: Illinois Rent Control Preemption 2026.

Does the Chicago RLTO require just cause to terminate or not renew a lease in 2026?

Yes, for landlords who own 7 or more dwelling units in Chicago. Under Chicago RLTO as amended by Ordinance O2020-4550 (effective September 11, 2021), these larger-building landlords must either provide a just-cause reason for non-renewal of a fixed-term lease OR pay the departing tenant one month's rent as relocation assistance. Just-cause grounds include non-payment, material lease violations (after notice and opportunity to cure), material misrepresentation on the application, tenant-caused damage, and criminal activity. Small landlords (fewer than 7 Chicago units total) are exempt from this relocation assistance requirement but must still give the 30-120 day advance termination notice under RLTO based on tenancy length.

What is 765 ILCS 730 and which Illinois rental buildings does it apply to?

765 ILCS 730 is the Illinois Security Deposit Interest Act. It requires landlords of residential buildings with 25 or more units located in municipalities with 25,000 or more residents to pay annual interest on security deposits. Covered cities include Aurora, Joliet, Naperville, Rockford, Elgin, Springfield, Peoria, Champaign, and Waukegan (among others). The interest rate is set annually by the Illinois DFPR. Interest is due by January 31 for deposits held throughout the full prior calendar year (or within 30 days of the anniversary for deposits received mid-year). Penalty for failure: $100 + attorney fees per tenant. NOTE: Chicago buildings are governed by the Chicago RLTO's interest requirements, not 765 ILCS 730. Cook County suburban buildings with 25+ units are governed by both 765 ILCS 730 AND the Cook County RTLO.