What Changed for Chicago Landlords: The 2024-2026 Rules That Are Easy to Miss

If you own a two-flat or a small building in Chicago and live in one of the units, you may have been told that the city's big tenant ordinance doesn't apply to you. That is partly true, and it is exactly why several recent changes are easy to miss. Some of the rules below are state laws that reach every building. Some are Chicago rules that apply even to owner-occupied buildings. One applies only in a single neighborhood. And one, the 5-day notice, isn't new at all, but it is still easy to get wrong.

Here is what changed between 2024 and 2026, what has stayed the same, and what is still pending, with the section number for each rule so you can look it up yourself. Each rule was checked against the current text on the Illinois General Assembly and Chicago Municipal Code websites in October 2026.

At a Glance

Rule	Where it comes from	Who it covers
Retaliation: the state law was replaced	765 ILCS 721 (effective 1-1-2025)	Every Illinois landlord, including owner-occupied buildings
Deposit-return rules	765 ILCS 710, as amended by P.A. 103-224 (effective 1-1-2024)	Every building; the old unit minimum is gone
The required 5-day notice sentence	735 ILCS 5/9-209 and 9-211	Every Illinois landlord using a 5-day notice
No lockouts	Chicago RLTO 5-12-160	Every rented unit in Chicago, including owner-occupied buildings
Longer notice in the Jackson Park pilot area	Chicago RLTO 5-12-135	Rentals inside the pilot boundaries
PRO and FAIR ordinances	Pending before City Council	Not yet decided

1. Retaliation: The State Law Was Replaced

Illinois repealed its old Retaliatory Eviction Act (765 ILCS 720). In its place, the Landlord Retaliation Act (765 ILCS 721) took effect on January 1, 2025. The new law comes with a presumption that works against the landlord, and it carries real money damages.

What you can't do. Under 765 ILCS 721/5, a landlord may not knowingly terminate a tenancy, increase rent, decrease services, bring or threaten to bring an eviction suit, or refuse to renew a lease because the tenant, in good faith:

• complained of code violations to a government agency, elected representative or public official,
• complained to, or sought help from, a community organization about a code violation or illegal landlord practice,
• requested repairs required by code or by the lease,
• organized or joined a tenants' union,
• testified about the premises, or
• exercised a legal right.

The one-year presumption. If the tenant's protected activity happened within one year before your action, your action is presumed retaliatory (721/20). The presumption does not arise if the tenant's activity started after you had already taken the action.

How a landlord rebuts it. Your action is not retaliatory if you prove a legitimate, non-retaliatory basis for it, or if you began the action before the tenant's activity (721/15). In practice, that means dates and documents matter: when you decided, when you told the tenant, and why.

What it can cost. Under 721/10, a tenant can use retaliation as a defense. The tenant can also terminate the lease and get back the deposit, interest and any prepaid rent, or recover possession. On top of that, the tenant can recover up to the greater of two months' rent or twice the damages, plus reasonable attorney's fees.

Why this matters for owner-occupied buildings. The Chicago RLTO has its own retaliation rule (5-12-150), which also uses a one-year rebuttable presumption and also covers complaints to the news media. But owner-occupied buildings of six units or fewer are exempt from that RLTO rule. The state law has no such exemption. It applies statewide, so the owner-occupied two-flat that was outside Chicago's retaliation rule is covered by 765 ILCS 721.

2. The Deposit-Return Law Now Covers Every Building

The Illinois Security Deposit Return Act (765 ILCS 710) used to apply only to buildings above a minimum number of units. Public Act 103-224, effective January 1, 2024, removed that minimum. The deposit-return rules now apply to every building, regardless of size.

That matters most for owner-occupied buildings of six units or fewer, which are exempt from the RLTO's deposit rules. An owner-occupied two-flat that is outside the RLTO's deposit rules is still covered by the state law. To keep any part of a deposit for damage, you must:

• give the tenant an itemized statement of the damage,
• with paid receipts, or estimates with the receipts to follow within 30 days,
• within 30 days of the later of the move-out date or the end of the tenant's right of possession.

If you don't do that, you must return the full deposit within 45 days of move-out.

The penalty is steep. If a court finds that the landlord refused to supply the itemized statement or supplied it in bad faith, and failed to return the amount due on time, the landlord owes twice the amount of the deposit due, plus court costs and reasonable attorney's fees.

Deposit interest works differently. Two separate rules can apply, and whether you owe interest depends on which one covers your unit:

• State law. Under the Security Deposit Interest Act (765 ILCS 715), the state's interest requirement applies only to buildings of 25 or more units.
• Chicago's RLTO. If your unit is covered by the RLTO, the RLTO requires you to pay interest on a security deposit held for more than six months, regardless of building size, at the rate the City sets each year (5-12-080 and 5-12-081).

If you own an owner-occupied building of six units or fewer, you are exempt from those RLTO deposit rules. Because that building is also under 25 units, neither interest rule described here would apply to it, but the state deposit-return rules above still do.

3. The 5-Day Notice Sentence That's Easy to Miss

This one is not new. It is on this list because it is still easy to get wrong, and missing it can undo an otherwise valid notice.

Under 735 ILCS 5/9-209, once rent is due, a landlord may demand payment in writing and state that the lease will be terminated unless the rent is paid within a time not less than five days after service. The notice must prominently include this sentence, word for word:

"Only FULL PAYMENT of the rent demanded in this notice will waive the landlord's right to terminate the lease under this notice, unless the landlord agrees in writing to continue the lease in exchange for receiving partial payment."

Without that sentence, accepting a partial payment can waive the notice. A tenant pays part of the rent, you take it, and the notice you served may no longer support an eviction.

It's a demand for rent. Section 9-209 covers rent. Adding late fees, utilities or other charges to the amount demanded is a common reason a notice gets challenged, and in Chicago a late fee above the RLTO cap is a prohibited lease term (5-12-140(h)).

Serve it correctly. Service is governed by a different section, 735 ILCS 5/9-211. The options are:

• hand it to the tenant,
• leave it with someone 13 or older who resides on or is in possession of the premises,
• send it by certified or registered mail, with a returned receipt from the addressee, or
• only if no one is in actual possession, post it on the premises.

Count the days correctly. Under 5 ILCS 70/1.11, exclude the day of service and include the last day. If the last day falls on a Saturday, Sunday or holiday, it moves to the next day that isn't a Saturday, Sunday or holiday.

For the full sequence after a missed payment, including what partial payments do, see what to do when a Chicago tenant hasn't paid rent and the Chicago 5-day notice guide.

4. Lockouts Are Illegal Even If You Live in the Building

Owner-occupants are often told the RLTO doesn't apply to their building. The lockout rule does. The RLTO exempts owner-occupied buildings of six units or fewer from most of its rules (5-12-020), but it expressly keeps two rules applying to every rented unit in those buildings: the lockout ban in 5-12-160 and the Fair Notice rule in 5-12-130(j).

Under 5-12-160, a landlord may not oust a tenant without court authority. That includes:

• changing, plugging or removing locks,
• blocking entrances,
• removing doors or windows,
• interfering with utilities, including electricity, gas, water, plumbing and heat,
• removing the tenant's belongings,
• disabling appliances or fixtures, except for needed repairs, and
• using force or threats.

The exceptions are narrow. They are: a court eviction enforced by the Cook County Sheriff; temporary interference only as needed for repairs or inspection, as provided by law; and a unit that has been legally abandoned under 5-12-130(e).

The penalties. The city fine is $200 to $500 per offense, and each day is a separate offense. Chicago Police investigate lockout complaints. A tenant who proves a violation in court recovers possession plus up to the greater of two months' rent or twice actual damages, and a tenant who sues and wins also recovers court costs and reasonable attorney's fees (5-12-180).

The only lawful way to remove a tenant is through an eviction case in court. If rent is the problem, start with the nonpayment steps.

5. Longer Notice in One Neighborhood: The Jackson Park Pilot

On September 25, 2025, the City Council adopted RLTO 5-12-135, a pilot that lengthens notice periods in one area of the South Side. The pilot expires no later than January 31, 2029. Its effective date wasn't confirmed for this guide, so check it before relying on the longer periods.

Where it applies. The area bounded by 60th Street on the north, Dr. Martin Luther King Jr. Drive on the west, South Chicago Avenue on the southwest, 71st Street on the south, and South DuSable Lake Shore Drive on the east.

What it requires. For leases beginning on or after the pilot's effective date, written notice to end a periodic tenancy, not renew a lease, or raise rent must be given at least:

Length of tenancy	Minimum written notice
One year or less	90 days
12 months to three years	120 days
Over three years	180 days

Everywhere else in Chicago, the Fair Notice rule in 5-12-130(j) sets the periods: 30 days for a tenancy under six months, 60 days for six months to three years, and 120 days for more than three years. Remember that 5-12-130(j) is one of the rules that still applies to owner-occupied buildings.

6. What's Pending: PRO and FAIR

Two Chicago ordinances that would affect landlords are pending: the Protecting Renters Ordinance (PRO) and the FAIR ordinance. PRO passed the Housing Committee 12-9 on September 16, 2026, and FAIR passed the Zoning Committee 12-6 the next day. Floor votes planned for September 23 and September 29 were called off, and both votes were deferred to the City Council meeting on Wednesday, October 14, 2026, according to WGN and the Chicago Tribune. Any ordinance needs 26 votes to pass.

The Council did not vote on either ordinance at that October 14 meeting: neither appears among the items it acted on, according to the City Clerk’s official record. The Council meets in a special session on Wednesday, October 21, but the Mayor’s call limits that meeting to the 2027 budget “and for no other purpose whatsoever,” so neither ordinance can be voted on there. No new vote date had been set as of October 21. This section will be updated when the Council acts.

Until the Council acts, neither ordinance changes the rules described above.

Key Takeaways

• The state Landlord Retaliation Act (765 ILCS 721) replaced the old Retaliatory Eviction Act on January 1, 2025, and it applies to owner-occupied buildings too
• Protected tenant activity within one year before your action creates a presumption of retaliation (721/20)
• Since January 1, 2024, the deposit-return law (765 ILCS 710) covers every building, with a 30-day itemized statement or a 45-day full return
• A 5-day notice needs the exact "Only FULL PAYMENT" sentence and must be served using one of the methods in 9-211
• Lockouts are banned under RLTO 5-12-160 even in owner-occupied buildings of six units or fewer
• Inside the Jackson Park pilot area, notice periods run 90, 120 or 180 days (5-12-135)
• PRO and FAIR are still pending; check the status above

Sources

• Landlord Retaliation Act, 765 ILCS 721/5, 721/10, 721/15, 721/20 (repealed: Retaliatory Eviction Act, 765 ILCS 720)
• Chicago RLTO 5-12-150 (retaliation)
• Security Deposit Return Act, 765 ILCS 710, as amended by Public Act 103-224
• Security Deposit Interest Act, 765 ILCS 715
• Chicago RLTO 5-12-080 and 5-12-081 (security deposits and deposit interest)
• Code of Civil Procedure, 735 ILCS 5/9-209 (demand for rent) and 5/9-211 (service)
• Statute on Statutes, 5 ILCS 70/1.11 (computing time)
• Chicago RLTO 5-12-020 (exclusions), 5-12-130(e) and (j), 5-12-135 (Jackson Park pilot), 5-12-160 (lockouts), 5-12-180 (attorney's fees)
• PRO/FAIR status (section 6): WGN; Chicago Tribune; Block Club Chicago; The Real Deal Chicago (September and October 2026 reporting); Office of the City Clerk, City Council meeting record, October 14, 2026; Mayor’s call for the October 21, 2026 special meeting, filed with the City Clerk on October 16, 2026