The Illinois Senate passed a measure to limit the fees landlords can charge to renters, but the measure still needs to be approved by the Illinois House. 

House Bill 3564 has been through months of negotiations, having been amended nine times since January.  

The latest version would ban 11 “junk fees,” Sen. Mike Simmons (D-Chicago) said.   

The measure would limit application fees to $50. That would cover the cost of a background check, unless the cost of a third-party service is more than $50, in which case the landlord may charge a higher fee. A receipt would need to be provided to the tenant to prove the cost was more than $50.  

The measure would ban other fees ancillary to the application, as well as fees for unit walkthroughs and lease modifications.  

It would also ban myriad fees related to maintenance, including fees for general repairs, after hours work and travel associated with maintenance. It would also ban fees for pest control if the tenant did not contribute to the infestation.  

The measure also bans fees or fines for an eviction notice or the filing of an eviction notice before a court has granted the order. The provision clarifies that it does not prevent landlords from recovering costs in court.   

A report from the Urban Institute found junk fees can add 10-30 percent to a renter’s total monthly cost. Fees can also add hundreds of dollars to moving costs.   

“I represent a Senate district that, for example, Rogers Park, three out of four constituents are renters,” Simmons said. “This is going to bring great relief, not just to people I represent, but people all across the state who have seen rental fees increase in recent years, often for causes and expenses that are not the fault of the renters.”  

The measure upholds home rule jurisdictions’ ability to regulate fees, setting the provisions of the bill as a minimum standard.  

When a landlord has violated the act, tenants would be able to sue for relief. The act would go into effect July 1, 2026.  

The measure was initially opposed by realtor groups. Simmons said after negotiations, they have been moved to neutral.  

HB 3564 also adds provisions related to transparency, requiring all mandatory fees to be listed on the first page of a lease. It also requires landlords to include whether utilities are included in the rent price when listing an apartment.  

Sen. Cristina Castro (D-Elgin) praised the transparency provisions.  

“This is really about disclosure and being fair to those that are renting,” Castro said. “There are numerous stories across the state talking about how people who rent apartments get stuck in leases and get charged and nickel-and-dimed to death after they've signed the lease, and then if they break the lease, it costs them more.”  

Sen. Steve McClure (R-Litchfield) expressed concerns that the measure could unintentionally impact affordable housing units.  

“Statewide, we only have about 34 affordable and available rental homes for every 100 extremely low-income renters,” McClure said. “So, this is a very sensitive area. My concern is this legislation is going to add so much red tape to people already offering affordable housing that they're going to stop investing in the market.”  

Simmons said the measure will add predictability to the rental market, something he said will benefit both renters and landlords.  

“They have a little bit more predictability in terms of what they can and cannot charge, and that's going to help us to have much more affordable housing all across the state,” Simmons said.  

HB 3564 passed the Senate 39-16. It now goes to the House for a concurrence vote.