2026 Chicago & Illinois Landlord Law Updates: The Complete Rundown
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2026 is a landmark year for Chicago and Illinois landlord law. A new state squatter law, a tougher retaliation statute, a change to how you name defendants in an eviction, a Chicago composting mandate, and a sweeping proposed overhaul of the RLTO — all landing in roughly the same window. If you own or manage rentals in the city, this is your one-page rundown of everything that changed, what's already in effect versus still a proposal, and where to go deeper on each.
Already in Effect
SB 1563 — Illinois's New Squatter Law
Effective January 1, 2026, SB 1563 reclassifies true squatters as criminal trespassers that police can remove without an eviction case — but it does not apply to actual tenants, and the squatter-vs-tenant line is where landlords get in trouble. Read the full guide →
The Landlord Retaliation Act
Effective January 1, 2025, this statewide law bans eviction, rent increases, service cuts, non-renewal, or even threats made in response to a tenant's protected activity — with a one-year presumption that flips the burden onto you and damages up to twice the rent plus attorney's fees. Read the full guide →
HB 3566 — Minors in Evictions
Effective January 1, 2026, you can't name a minor as a defendant in an eviction. Do it and the entire case is dismissed against everyone and sealed, with a $1,000 penalty for willful violations. Name only the adult tenants. Read the full guide →
Chicago's Composting Ordinance
Adopted October 16, 2025, this ordinance bars landlords from unreasonably restricting tenants' organic-waste composting. You can set reasonable container and sanitation rules, but blanket "no composting" bans risk $300–$600 per-offense fines. Read the full guide →
Still a Proposal — Watch This One
The Protecting Renters Ordinance (PRO)
Mayor Johnson's proposed overhaul of the 40-year-old RLTO would add just-cause eviction and non-renewal, a citywide rental registry ($20–$60/unit/year), a junk-fee ban, and a new enforcement bureau. It's not law yet — a Council vote is hoped for late 2026, with a January 2027 effective date if it passes. Read the full guide →
How to Stay Compliant in 2026
The through-line across all of these is that the paperwork and the timing now matter more than ever. A few moves that cover most of the risk:
- Audit your leases and rules — strip out blanket composting bans and any junk fees not tied to a real cost
- Document before you act — the retaliation law's one-year presumption rewards a clean, dated record of legitimate reasons
- Fix your eviction filing habits — name only adult tenants (HB 3566), and don't confuse a holdover tenant with a squatter (SB 1563)
- Watch the PRO — if it passes, the registry and just-cause rules will require real changes; get ahead of it now
Want a version you can print and work through? Grab the free 2026 Chicago Landlord Compliance Checklist.
Key Takeaways
- Four changes are already law: SB 1563 (squatters), the Landlord Retaliation Act, HB 3566 (minors in evictions), and Chicago's composting ordinance
- One big one is still proposed: the Protecting Renters Ordinance (registry, just-cause, junk-fee ban)
- The common thread: documentation and timing decide whether a legitimate action holds up
- Audit leases, document reasons before acting, tighten eviction filings, and track the PRO
