Illinois New “Junk Fees” Alert for Residential Leases

Illinois has enacted House Bill 3564 which bans “junk fees” charged by landlords and adds new layers of transparency to residential lease agreements. This law takes effect on January 1, 2027, and will prohibit landlords from levying fees or fines for a residential lease modification or renewal, an eviction notice, after-hours maintenance requests, and routine maintenance. There will also be limits on charges for application fees and background checks at $50 unless the actual cost of a third-party background check exceeds this amount. Landlords must also include a list of all nonoptional fees on the first page of the residential lease. If the landlord fails to properly list and disclose these fees, tenants are not required to pay these amounts.

This article was originally published in Real Property (July 2026, Vol. 72, No. 1), the newsletter of ISBA’s Section on Real Estate Law.