Illinois lawmakers have passed legislation aimed at banning various hidden rental fees, commonly referred to as 'junk fees.' The bill, which awaits the signature of Governor JB Pritzker, seeks to enhance transparency in rental agreements by requiring mandatory fees to be disclosed on the first page. The legislation would prohibit landlords from charging fees for lease renewals, after-hours maintenance requests, and other services, starting in 2027. Rental application fees would be capped at $50 unless actual costs exceed this amount.
The legislation is a response to concerns about rising rental costs in the Chicago area, where median rent increased by 1.5% to $2,030 per month from May 2025 to May 2026, according to Zillow. Housing advocates argue that renters, particularly those with limited affordable options, are vulnerable to unexpected fees. However, landlord groups have expressed concerns that the bill could impose undue burdens on smaller property owners, particularly regarding after-hours maintenance costs and rental application fees.
The bill passed with support from Democratic lawmakers, while some Republicans and a few Democrats opposed it. Changes to the legislation included exemptions for landlords in owner-occupied buildings with fewer than seven units. Proponents of the bill, including State Senator Mike Simmons, emphasized that the legislation is designed to protect tenants from corporate landlords who may impose excessive fees and rent increases.