2025 Illinois Landlord-Tenant Law Changes: 7 Critical Updates

July 7, 2025

Did you know Illinois landlords face significant new penalties? This includes fines up to $2,000, particularly under the new Landlord Retaliation Act. Starting January 2025, new rental laws changed many rules for property owners. These changes affect everyone - whether you own one apartment building or manage multiple properties.


The laws cover important areas like security deposits, tenant complaints, and flood risk disclosures. Many landlords don't realize they need to update their leases and procedures right away. Waiting could mean expensive fines or legal trouble.


This guide explains the 7 most important changes in plain language. You'll learn what's different and exactly what to do about it. We've included a simple checklist to help you stay compliant.


By the time you finish reading, you'll know how to:


  • Handle security deposits correctly
  • Update your lease agreements
  • Avoid the most common (and costly) landlord mistakes of 2025

1. Landlord Retaliation Act: Stricter Tenant Protections

The 2025 Landlord Retaliation Act makes big changes for Illinois landlords. If a tenant complains about problems in their unit and you raise rent or try to evict them within one year, the law will assume you're punishing them. This applies to complaints about broken appliances, safety issues, or when tenants report problems to the city or news.


The penalties are serious. You could owe the tenant three times their damages plus $2,000. You might even have to pay their lawyer fees.


To protect yourself, keep good records. Write down why you raise rents - show it matches what other landlords charge. Keep notes about all repairs and maintenance. Take photos with dates when you fix things. Treat all tenants the same way.


Good paperwork is your best protection if a tenant says you treated them unfairly. It shows you follow the rules and make fair business decisions.

2. Mandatory Flood Risk Disclosures

You now must tell tenants about flood risks before they sign a lease. This applies in two situations: if your property is in a FEMA high-risk flood zone (A or V areas), or if the basement or first floor flooded in the past 10 years - even before you owned it.


Failing to disclose this gives tenants important rights. They can break their lease immediately if they discover undisclosed flood risks. They may also sue for damages if flooding affects their belongings.


Protecting yourself is straightforward. Check your property on FEMA's flood maps. Add the official disclosure wording to every lease. Keep copies showing tenants received this information.


These rules exist so renters understand potential risks upfront. For landlords, proper disclosure prevents legal headaches while maintaining good tenant relationships.

3. Rent Payment Flexibility & Receipt Rules

Illinois now requires landlords to offer flexible payment options. If your electronic payment system charges fees, you must also accept cash or checks without penalty. This change helps tenants who don't use banks or prefer traditional payment methods.


The law also tightens receipt rules. When collecting rent, you must provide a receipt right when payment is made. For security deposits, you have 10 days to give tenants a written receipt after receiving their money.


A good solution is using payment platforms that offer both free and paid options. Many landlords successfully use systems where tenants can choose between:


  • Free bank transfers
  • Credit card payments (where the tenant pays the processing fee)


These changes aim to make payments easier for everyone while ensuring clear financial records. Keeping good receipts protects both you and your tenants if questions arise later.

 4. Security Deposit Crackdown

Chicago has new deposit limits. You can only ask for up to 1.5 times the monthly rent. Other Illinois cities might have different rules, so check your local laws.


You must give deposits back within 45 days after a tenant leaves. Send the full amount or a list showing what you took out and why. If you're late, you might have to pay double the deposit plus the tenant's lawyer fees.


For buildings with 25 or more units, you need to pay 0.01% interest. This rule applies everywhere in Illinois.

Chicago has some extra rules:


  • Tell tenants the interest rate in their lease
  • Pay them interest every year
  • If you don't follow these rules, you could pay double the deposit plus fees



These rules help make sure tenants get their money back fairly. To stay safe:


  • Take pictures when tenants move in and out
  • Keep all repair bills
  • Mark your calendar for the 45-day deadline


5. Tenant Screening Report Reuse

Tenants now have a new option when applying for rentals. They can use the same credit report for multiple applications within 30 days. This saves them money on application fees.


As a landlord, you can still choose to run your own credit check. But you'll need to pay for it yourself - you can't charge the tenant if they provide their own report.


This change helps tenants who apply to several places at once. For landlords, it means you might see more applicants using the same credit reports. You still have the right to verify the information with your own check if you prefer.



The system aims to make renting more affordable while letting landlords maintain their screening standards. Just remember you can't require tenants to pay for a new report if they already have a valid one.

6. Radon & Hazard Disclosures

Landlords must now give tenants an official "Radon Guide for Tenants" pamphlet. You don't need to test for radon - just provide the information.


If a tenant tests the property and finds high radon levels (4 pCi/L or more), you must tell future tenants about this result.


These rules help tenants understand potential health risks while keeping requirements simple for landlords. The pamphlet explains what radon is and how tenants can test if they choose.


Remember to:


  • Keep records showing you gave tenants the guide
  • Save any radon test results tenants share with you
  • Disclose previous high test results to new applicants


This protects everyone and follows the law.

7. Process Serving Modernization

Cook County has changed how landlords can deliver eviction notices. Now you can hire private detectives instead of only using sheriffs.


This gives landlords two big benefits:


  1. It's usually faster - private detectives can often serve notices quicker
  2. It costs less money than using sheriff's offices


You still need to follow all other eviction rules. But this change makes the first step simpler. Private detectives must be properly licensed to handle these notices.


This update helps landlords move through the legal process more efficiently while still protecting tenant rights. If you need to start an eviction, you now have more options for serving the paperwork.

2025 Compliance Checklist for Illinois Landlords

Lease & Disclosures

  • Add official flood risk language to all leases (check FEMA maps)
  • Include radon disclosure with the "Radon Guide for Tenants" pamphlet
  • Update lease terms to reflect new retaliation rules


Payments & Deposits

  • Offer cash/check payment options if electronic methods charge fees
  • Provide receipts for rent (immediately) and security deposits (within 10 days)
  • Return deposits in 45 days (Chicago: cap at 1.5x rent; document deductions)


Tenant Screening & Risk Management

  • Accept reusable tenant reports (valid 30 days) but verify with your own check if needed
  • Train staff on retaliation risks—document all complaints and rent changes
  • Bookmark FEMA Flood Maps for quick reference


Evictions (Cook County)

  • Use private detectives (not just sheriffs) to serve notices faster


Pro Tip

Set calendar reminders to audit compliance every 6 months.

Need Expert Guidance on These Changes?

Navigating these new laws can be complex—especially if you manage multiple properties. At Taty Management, we've helped Illinois landlords stay compliant for over 30 years. Our team handles:


  • Lease updates with all required 2025 disclosures
  • Security deposit processing that meets strict deadlines
  • Eviction paperwork (including Cook County's new serving rules)
  • Full property management so you avoid legal risks entirely


Get peace of mind today:


📞 Call: 773-771-6415

📧 Email: ord89@aol.com

🌐 Visit: https://www.tatymanagement.com/


Serving Chicago, Naperville, Northwest Indiana, and surrounding areas.