SB3763 104TH GENERAL ASSEMBLY

LRB104 19535 JRC 32983 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3763

Introduced 2/5/2026, by Sen. Mike Simmons

SYNOPSIS AS INTRODUCED:

765 ILCS 705/35 new

Amends the Landlord and Tenant Act. Requires landlords to disclose all non-optional fees in a clear and conspicuous manner in the listing and on the first page of the lease. Requires landlords to disclose if any utility bills are non-optional fees in the listing and the first page of the lease. Provides that if a landlord failed to comply with this disclosure, the landlord may not collect the non-optional fee. Prohibits a landlord from charging a bundled services fee that combines optional and non-optional fees. Prohibits a landlord from charging a tenant with a fee or fine that includes, but is not limited to, an application fee that includes a background check of more than $50, an after-hours request for maintenance service, or pest abatement or removal in which the tenant has not contributed to the infestation. Prohibits a landlord from charging a tenant more than one of the following: (i) a security deposit, (ii) a move-in fee, or (iii) a move-out fee. Exempts leases in owner-occupied buildings containing 6 or fewer units and to nonresidential tenancies. Defines terms. Creates a civil cause of action for violation of the Act by a landlord. Makes other changes. Limits home rule.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Landlord and Tenant Act is amended by adding Section 35 as follows:

(765 ILCS 705/35 new)

Sec. 35. Rental fee transparency and limitations.

(a) Definitions. As used in this Section:

"Application fee" means a request by a landlord for a fee to cover the costs of obtaining information about a prospective tenant. Application fee includes, but is not limited to, background checks, screening reports, and any additional expenses for reviewing this information.

"Bundled services" fee means a request or demand by a landlord that a tenant pay one amount for several different services or benefits. This fee may also be known as a "resident benefit fee" or "resident benefit package."

"Landlord" means the owner, agent, lessor or sublessor, or the successor in interest of any of them, of a dwelling unit or the building of which it is part.

"Lease" means all written or oral agreements embodying the terms and conditions concerning the use and occupancy of a dwelling unit by a tenant.

"Listing" means an advertisement or written notice that states that a property is available for lease and includes a rental price.

"Move-in fee" means the fee that a landlord charges to a tenant that is reasonably related to the landlord's cost for a tenant moving into the dwelling unit including, but not limited to, additional security costs or additional trash removal.

"Move-out fee" means the fee that a landlord charges to a tenant that is reasonably related to the landlord's cost for a tenant moving out of the dwelling unit including, but not limited to, additional security costs or additional trash removal.

"Non-optional fee" means an amount that a lease requires a tenant to pay as a condition to reside at the property and that the tenant may not opt out of paying. A non-optional fee may be one-time or recurring.

"Security deposit" means an amount that a landlord requires a tenant to pay to secure payment of rent or to compensate for damage to a leased premise. Security deposit includes an amount that a landlord requires a tenant to pay in advance for what is frequently referred to or known as "last month's rent".

"Tenant" means a person entitled by written or oral agreement, subtenancy approved by the landlord or by sufferance, to occupy a dwelling unit to the exclusion of others. "Tenant" also means a person applying to become a tenant.

(b)(1) Exceptions. This Section does not apply to leases in owner-occupied buildings containing 6 or fewer units.

(2) This Section does not apply to non-residential tenancies.

(c)(1) Rental fee transparency. A landlord must explicitly disclose all non-optional fees in a clear and conspicuous manner in the listing and on the first page of the lease. The landlord must disclose if any utility bills are non-optional fees in the listing and on the first page of the lease. This Section does not affect any rights or obligations under the Rental Property Utility Service Act or Tenant Utility Payment Disclosure Act.

(2) If the landlord has not explicitly disclosed a non-optional fee in the listing and on the first page of the lease, the landlord may not collect the non-optional fee.

(3) A landlord may not charge a bundled services fee by combining optional and non-optional fees. A landlord must explicitly disclose all components of a bundled services fee.

(d) Junk fee ban. A landlord or lease may not require that a tenant pay any of the following:

(1) An application fee, including background checks, more than $50.

(2) A fee or fine ancillary related to the application fee except as provided in paragraph (1) of this subsection.

(3) A fee or fine for modification or renewal of a lease.

(4) A fee or fine for creating or serving a notice of termination of tenancy or filing an eviction action unless a court grants an eviction order, then the court may include court costs and filing fees.

(5) A fee or fine for after-hours requests for maintenance service.

(6) A fee or fine for contacting the owner or property manager for maintenance or service requests, lease-related questions, or other items directly related to the tenancy.

(7) A fee or fine for travel required to complete maintenance work or safety repairs.

(8) A fee or fine for a maintenance hotline service or call to a maintenance hotline for maintenance or service requests, lease-related questions, or other items directly related to the tenancy.

(9) A fee or fine for the routine maintenance and upkeep of the unit.

(10) A fee or fine for pest abatement or removal in which the tenant has not contributed to the infestation.

(11) A fee or fine for an in-person walk through of the unit at the time of move-in and move-out.

(e) Security deposits and move-in fees.

(1) A landlord may not charge a tenant more than one of the following:

(A) a security deposit;

(B) a move-in fee; or

(C) a move-out fee.

(2) If a landlord charges a move-in or move-out fee, the landlord must provide the tenant with an itemized list of the landlord's reasonable costs of services that comprise the move-in or move-out fee. The landlord may not charge a move-in or move-out fee more than the reasonable cost of the expense excluding costs associated with routine maintenance and upkeep of the unit or premises.

(f) Home rule. A unit of local government, including a home rule unit, may not regulate fees charged to tenants in a manner less restrictive than the regulation by the State of these fees under this Section. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

(g) Applicability. A landlord may not rename a fee or charge to avoid application of this Section. This Section applies to all leases entered into after the effective date of this amendatory Act of the 104th General Assembly.

(h) Penalties. Any person alleging a violation of this Section may bring a civil action, in accordance with applicable law, in any court of competent jurisdiction. The court may order injunctive relief, monetary relief, attorney's fees, and costs.