There are several legal updates impacting Chicagoland and Illinois landlords and rental property managers. Below is an amended summary including:

  • Changes to Accepting Electronic Payments in 2024
  • Changes to Immigration as a Protected Class
  • The Illinois Electric Vehicle Charging Act
  • Changes to the Illinois Tenant Radon Protection Act for 2024
  • New Appellate Court Ruling a Benefit for Chicago Landlords

Questions about these legislative changes, evictions, security deposits, leases, tenant screening, and other landlord legal issues? Our experienced landlord/tenant attorneys are here to help.

Call KSN toll-free at 855-537-0500 or visit www.ksnlaw.com.

 

Changes to Accepting Electronic Payments in 2024: Impact to Illinois Landlords and Rental Property Managers

KSN blog article: https://www.ksnlaw.com/blog/accepting-electronic-payments-2024-impact-illinois-landlords-rental-property-managers/

A new section (765 ILCS 705/4) has been added to the Illinois Landlord and Tenant Act titled “Ban on Electronic Funds Transfers as Exclusive Method of Payment.” This prohibits Illinois landlords from requiring tenants to use electronic funds transfers (EFT) or similar electronic methods as the exclusive means of paying rent and other lease-related payments.

Below is a summary of the new section and its impact on Illinois landlords and rental property managers.

  • A landlord cannot require a tenant or prospective tenant to make any payment due under a lease, renewal, or extension agreement by electronic means, including electronic funds transfer or an electronic funds transfer system that automatically transfers funds on a regular, periodic, and recurring basis.
  • Therefore, a landlord can encourage tenants to make payments by electronic means, but cannot require an electronic payment as the only method of payment.
  • We do not recommend that landlords incentivize electronic payments with monetary bonuses or penalties.
  • Any transaction that is originated by check, draft, or similar paper instrument, however, does not fall under the umbrella of an “electronic payment.”  Therefore, landlords only need to offer an option that allows a tenant to submit a paper form of payment – even if that option is mailing a check to an offsite processor.
  • Be aware of the related Illinois statute that requires any rental building with 100 or more units and an onsite business office to accept payments onsite.

Non-compliance with this statute constitutes a violation of the Consumer Fraud and Deceptive Business Practices Act, which contains steep penalties and strict liability. There is no opportunity to cure the violation.

This statute applies to leases, renewals, or extension agreements executed after January 1, 2024 (as opposed to leases with lease terms that begin on or after January 1).

In addition, the statute allows for a grace period for compliance by March 31, 2024.

 

Changes to Immigration as a Protected Class: Impact to Illinois Landlords and Rental Property Managers

KSN blog article: https://www.ksnlaw.com/blog/immigration-protected-class-impact-illinois-landlords-rental-property-managers/

The Illinois Human Rights Act is a comprehensive state law that prohibits discrimination in several areas based on certain protected classes including:

Race, color, religion, national origin, ancestry, age (40 and over), sex (including sexual harassment), marital status, order of protection status, disability (both physical and mental), military status, sexual orientation (including gender-related identity), pregnancy, familial status (in the context of housing), unfavorable discharge from military service (in employment), citizenship status (in employment, for individuals who are legally authorized to work in the United States), arrest record (in employment, unless an arrest has led to a conviction), victim of domestic violence/sexual Violence/gender Violence (in employment and housing), and genetic Information (in employment).

These protections are designed to ensure equal treatment and opportunities in areas such as employment, housing, financial credit, public accommodations, and education, and they reflect a broad commitment to combating discrimination in various forms.

 

What are the legal changes coming in 2024?

A new section (775 ILCS 5/3-101, 102, 102.1, 103, 104.1 and 106) has been added to the Illinois Human Rights Act. This statutory amendment is effective January 1, 2024.

This legislative update amends the Illinois Human Rights Act to add immigration status to its list of protected classes, consequently prohibiting discrimination in any housing-related dealings based on an individual’s real or assumed citizenship or immigration status.

As a result, during tenant screening processes, Illinois landlords and rental property managers should avoid requesting immigration documents if other forms of identification are available to verify identity and conduct background/credit checks.

Consequences of noncompliance of this amendment include Civil Rights and Fair Housing violations via discrimination complaints.

 

The Illinois Electric Vehicle Charging Act: Impact to Illinois Landlords and Rental Property Managers

KSN blog article: https://www.ksnlaw.com/blog/illinois-electric-vehicle-charging-act-impact-illinois-landlords-rental-property-managers/

The Illinois Electric Vehicle Charging Act (765 ILCS 1085) is designed to facilitate the installation and use of electric vehicle (EV) charging stations in residential and commercial properties.

It applies to new single-family homes and multi-unit residential buildings constructed or renovated after the Act’s effective date of January 1, 2024.

It includes certain requirements for installing electric vehicle capable parking spaces in new homes, small multifamily residences with parking, and larger multifamily buildings, conversions, affordable housing, and renovations constructed or renovated after January 1, 2024.

In existing multifamily buildings and communities, the Illinois Electric Vehicle Charging Act establishes electric vehicle charging station guidelines for owners and renters, including:

  • Tenant has the right to install an electric vehicle charging system at the tenant’s own expense, with certain conditions and requirements:
    • Comply with building codes and safety standards;
    • Use a licensed & registered contractor of EVCSs;
    • Within 14 days after Landlord’s approval of installation plan, submit a COI naming Landlord as additional insured;
    • Register the system with the Landlord within 30 days after installation;
    • Adhere to Landlord’s reasonable aesthetic requirements.
  • Landlord may not charge a fee for placement or use of EVCS, except:
    • For additional electricity used;
    • For reasonable access;
    • Security Deposit;
    • For a reserved parking space, if required;
    • Reimburse Landlord for any increased insurance premium;
    • Reimbursement if the Landlord chooses to install the EVCS.

There are a variety of remedies available under the Illinois Electric Vehicle Charging Act for a landlord’s or tenant’s non-compliance.

 

Changes to the Illinois Tenant Radon Protection Act for 2024: Impact to Illinois Landlords and Rental Property Managers

KSN blog article: https://www.ksnlaw.com/blog/illinois-tenant-radon-protection-act-2024-impact-illinois-landlords-rental-property-managers/

The Illinois Radon Awareness Act and the Illinois Tenant Radon Protection Act are important laws that address the issue of radon in residential properties in Illinois. Radon is a naturally occurring radioactive gas that can cause lung cancer, and these laws are part of public health efforts to reduce radon-related health risks.

 

What is the Illinois Radon Awareness Act?

It requires that sellers of a residential property in Illinois provide the buyer with information about indoor radon exposure and the Illinois Emergency Management Agency’s (IEMA) radon testing guidelines.

While the Illinois Radon Awareness Act does not require radon testing or mitigation, it does mandate disclosure of any known radon hazards in the property. If a radon test has been conducted, the seller must provide the results to the buyer.

 

What is the Illinois Tenant Radon Protection Act?

Enacted in 2012 as an amendment to the Illinois Radon Awareness Act, this law applies to leased residential properties in Illinois. It requires landlords to inform tenants of radon hazards.

Specifically, if a radon test has been conducted and shows a radon level of 4 picocuries per liter (pCi/L) or higher (which is the action level recommended by the U.S. Environmental Protection Agency), the landlord must disclose this information to current and prospective tenants.

The law does not obligate landlords to conduct radon testing or mitigation. Instead, Illinois Tenant Radon Protection Act focuses on disclosure.

 

Changes to the Illinois Tenant Radon Protection Act for 2024

A new section (420 ILCS 46/25) has been added to the Illinois Radon Awareness Act that applies to rental property leases, lease renewals, or extension agreements entered on or after January 1, 2024 (as opposed to leases with lease terms that begin on or after January 1).

Below is a summary of the legislative changes:

  • A landlord is required to provide each tenant in a dwelling unit on the second floor or lower with specific information at the time of application, before signing a lease, or upon the tenant’s request during the tenancy:
    • Any documents or findings related to radon levels in the unit that suggest the presence of a radon risk,
    • A copy of the “Radon Guide for Tenants” brochure published by the Illinois Emergency Management Agency, and
    • The complete radon hazard disclosure form as detailed in the legislation.
  • The updated legislation additionally specifies that if a tenant conducts a radon test and requests radon mediation as a result, the tenant must share the results with the landlord within 10 days of receiving them.
  • The Act does not impose a duty on either the landlord or the tenant to perform radon testing, nor does it mandate the landlord to undertake radon reduction measures. However, the Act does allow for the termination of a lease in specific situations, including if a landlord chooses not to carry out radon mitigation after receiving test results from a tenant showing hazardous radon levels.

For more information about radon, please visit the Illinois Emergency Management Agency website: https://iemaohs.illinois.gov/nrs/radon.html

 

New Appellate Court Ruling a Benefit for Chicago Landlords

KSN blog article: https://www.ksnlaw.com/blog/appellate-court-chicago-landlords/

The 1st District Appellate Court of Illinois recently ruled in favor of landlords on an important issue under the Chicago Residential Landlord Tenant Ordinance (RLTO).

Section 5-12-170 of the RLTO requires that a summary of the security deposit interest rates, issued by the Chicago Commissioner of the Department of Planning and Development, be attached to every new lease and renewal, along with the RLTO summary.

For years, landlords who chose not to take a security deposit were still saddled with the burden of obtaining the interest rate summary and adding it as an additional disclosure to each new lease and renewal.

In the new case, Hundley v. WPD Management, LLC, 2023 IL App (1st) 230075, the 1st District Appellate Court held that landlords who do not accept security deposits are not liable under the Chicago RLTO if they fail to attach the security deposit interest rate summary to the Lease.

The Court found that, since the tenants incur no injury or damages by not receiving the security deposit interest rate summary, when no security deposit is paid, such tenants have no standing to bring a claim under the RLTO for failure to attach the summary.

The Appellate Court opinion can be found here.

 

Legal Resource

Questions about these legislative changes, evictions, security deposits, leases, tenant screening, and other landlord legal issues? Our experienced landlord/tenant attorneys are here to help.

Call KSN toll-free at 855-537-0500 or visit www.ksnlaw.com.

Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.

 

Please note the material contained in this article is for educational and informational purposes only and does not constitute legal advice. No attorney-client relationship is established by your review or receipt of the information contained in this article. You should not act on the information discussed in this article without first obtaining legal advice from an attorney duly licensed to practice law in your State. While KSN has made every effort to include up-to-date information in this article, the law can change quickly. Accordingly, please understand that information discussed in this article may not yet reflect the most recent legal developments. Material is not guaranteed to be correct, complete, or up to date. KSN reserves the right to revise or update the information and statements of law discussed in the article law at any time, without notice, and disclaims any liability for your use of information or statements of law discussed on the article, or the accessibility of the article generally. This article may be considered advertising in some jurisdictions under applicable law/s and/or ethical rules/regulations. © 2024 Kovitz Shifrin Nesbit, A Professional Corporation.