- Landlord & Tenant Law, Legal Updates
- Illinois
This article provides a brief summary of several new laws enacted in 2025 that affect Illinois landlords and rental property managers. Because each property and situation is unique, landlords should consult with their legal counsel to determine how these changes may specifically apply to their operations. KSN is proud to serve as a legal resource for Illinois landlords and rental managers navigating these evolving regulations. Questions about these Illinois legal updates, leases, evictions, 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/landlord-and-tenant
Criminal Trespass and Law Enforcement Authority (SB 1563, Effective January 1, 2026)
Senate Bill 1563 amends the Illinois Code of Civil Procedure to clarify that nothing in the Illinois Eviction Act limits law enforcement’s ability to enforce criminal trespass laws. This update confirms that police may remove individuals or property from premises when criminal trespass is present, independent of eviction proceedings.
For Illinois landlords, this clarification helps distinguish between civil eviction processes and criminal enforcement. While eviction procedures must still be followed for lawful tenants, this new law confirms that landlords are not required to tolerate criminal trespass situations simply because an eviction case is pending or unavailable.
Domestic Violence Disclosure (Effective January 1, 2026)
A new domestic violence disclosure requirement mandates that landlords attach a disclosure prepared by the Illinois Department of Human Rights (IDHR) to leases. Landlords should prepare to incorporate this disclosure once available and monitor guidance to ensure timely compliance.
Read more here: New Illinois Law Requires Violence Against Women Act (VAWA) Summary with All Leases Starting January 1, 2026 https://www.ksnlaw.com/blog/new-illinois-law-requires-violence-against-women-act-vawa-summary-with-all-leases-starting-january-1-2026/
Naming Minors in Eviction Proceedings (HB 3566, Effective January 1, 2026)
House Bill 3566 introduces strict limitations on naming minors in eviction lawsuits. Under the new Illinois law, minors may not be named as defendants. If a minor is included, the entire case must be dismissed, though the landlord may refile against proper defendants.
The statute also imposes significant penalties if a court finds the violation was willful or wanton, including a $1,000 statutory penalty, actual damages, and attorney’s fees. As a best practice, landlords and rental property managers should consult with their attorney to ensure that all required parties are listed on leases as authorized occupants with dates of birth or that accurate occupant records are maintained and provided to counsel at turnover to avoid costly dismissal issues.
Landlord Retaliation Act
Although effective January 1, 2025, the Landlord Retaliation Act remains a critical compliance issue in 2026. The law prohibits landlords from taking adverse actions (ex. termination, rent increases, service reductions, lawsuits, non-renewals) against tenants who engage in protected activities including requesting repairs, reporting code violations, or exercising legal rights.
A rebuttable presumption of retaliation applies if landlord action occurs within one year of the tenant’s protected conduct. Landlords should ensure decisions are well-documented and supported by legitimate, non-retaliatory business reasons.
Flood Disclosure Requirements
Illinois flood disclosure laws continue to apply in 2026. Landlords must provide written disclosures before lease execution if a property is in a Federal Emergency Management Agency (FEMA) designated flood hazard area or if the landlord has knowledge of flooding affecting the property or parking areas.
Additionally, all lower-level units require disclosure of flooding incidents within the prior ten years, including frequency. Failure to comply may allow tenants to terminate the lease after flooding events and pursue claims for damaged personal property.
ICE Access, Warrants, and Property Management Policies
Understanding Immigration and Customs Enforcement (ICE) access authority continues to be a concern for Illinois landlords and rental property managers. Generally, ICE agents may enter public areas of a property but may only access private areas with consent or a valid warrant.
Landlords and property managers should implement written policies, train staff on non-consent procedures, avoid disclosure of tenant information, and clearly distinguish public versus private areas through signage and access controls. Proper response protocols before, during, and after enforcement activity are essential to reduce legal exposure and operational disruption.
Chicago Composting and Organic Waste Rules (City of Chicago Ordinance, Effective October 16, 2025)
Chicago landlords should be aware of new municipal rules that prohibit lease provisions or building policies that unreasonably restrict tenants from composting organic waste or participating in lawful composting programs. While landlords may impose reasonable requirements related to container type, odor control, pest prevention, and cleanliness, blanket bans on composting or third-party compost services are no longer permitted.
Landlords should review leases and house rules to ensure compliance and train staff on how to address composting activity without creating nuisance conditions or enforcement risk.
Read more here: Chicago’s New Composting Rules: What Landlords & Managers Must Know https://www.ksnlaw.com/blog/chicagos-new-composting-rules-landlord/
2026 State of Illinois Security Deposit Interest Rate Announced
The Illinois Department of Financial and Professional Regulation (IDPFR) Division of Banking announced that the interest rate paid by the largest commercial bank with its main banking premises in Illinois on minimum deposit savings accounts as of December 31, 2025 was 0.005% with an Annual Percentage Yield (APY) of 0.01%. The Security Deposit Interest Act (765 ILCS 715) requires that the lessor of residential real property, consisting of 25 or more units, pay interest to the lessee on any security deposit held for six months or more. Interest must be paid to the lessee in cash or in the form of credit towards rent within 30 days after the end of each 12 month rental period at a rate equal to the interest paid by the largest commercial bank in Illinois on minimum deposit passbook savings accounts as of December 31 of the calendar year preceding the inception of the rental agreement. This Act does not apply to deposits made with respect to public housing, nor to a lessee who is in default under the terms of the lease.
Read more here: 2026 State of Illinois Security Deposit Interest Rate Announced https://www.ksnlaw.com/blog/2026-state-of-illinois-security-deposit-interest-rate-announced/
2026 City Of Chicago Security Deposit Interest Rate Announced
Each year the City of Chicago Comptroller is required to review and set the rate of interest to be paid on security deposits for residential lease agreements. As recently announced on the City of Chicago website, the rental agreement security deposit interest rate is set at 0.01% from January 1, 2026 through December 31, 2026.
Read more here: 2026 City Of Chicago Security Deposit Interest Rate Announced https://www.ksnlaw.com/blog/2026-city-of-chicago-security-deposit-interest-rate-announced/
Legal Resource
Non-compliance with these new 2026 landlord/tenant laws could lead to legal ramifications, fines, and litigation. Illinois landlords and rental managers should familiarize themselves with these updated legal requirements and proactively integrate them into their leasing processes.
Questions about these Illinois legal updates, leases, evictions, 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/landlord-and-tenant
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.
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