Chicago's Protecting Renters Ordinance: What Landlords Need to Know

Chicago is looking at the biggest change to its landlord-tenant law in a generation. In summer 2026, Mayor Brandon Johnson introduced the Protecting Renters Ordinance (PRO) — a sweeping rewrite of the roughly 40-year-old Residential Landlord and Tenant Ordinance (RLTO). If it passes anywhere close to its current form, it would change how every covered Chicago landlord handles evictions, non-renewals, and fees — and would require registering rental units with the city for the first time. Here's what's actually in it, and what it would mean for you.

What the Ordinance Would Do

The PRO is pitched as a modernization of the RLTO, bundled with a "Tenant Bill of Rights." Four pieces matter most to landlords: a just-cause requirement for ending or declining to renew a tenancy, a citywide rental registry with an annual per-unit fee, a ban on junk fees, and a new city enforcement bureau to handle complaints. Each is a meaningful shift from how things work today.

Just Cause for Eviction and Non-Renewal

Today, a Chicago landlord can generally decline to renew a lease for almost any non-retaliatory reason, as long as they give the right Fair Notice (30, 60, or 120 days based on how long the tenant has lived there). The PRO would add a layer on top: you'd need a "just cause" to remove a tenant or decline renewal.

The proposal lists just causes including nonpayment of rent, serious or material lease violations, the owner (or family) moving in, substantial rehab or major repairs, demolition, and condo conversion, among others. For no-fault removals — where the tenant did nothing wrong, such as a gut rehab, condo conversion, or demolition — the landlord would owe the tenant relocation assistance. In practice, that means "I'd just rather not renew" would no longer be a complete answer; you'd need a recognized reason, and some reasons would come with a relocation payment attached.

A Citywide Rental Registry

The PRO would create a rental registry requiring landlords to register their units with the city each year. The proposed fee runs roughly $20 to $60 per unit annually, scaled by building size, and would fund inspections and enforcement. Several categories are proposed as exempt from registration fees: owner-occupied buildings of six units or fewer, nonprofit-owned units, and units owned or subsidized by the Chicago Housing Authority or the Low-Income Housing Trust Fund.

The ordinance would also stand up a new Bureau of Rental Housing Services inside the Department of Housing to process rental complaints, investigate violations, and coordinate enforcement — an administrative body aimed at resolving landlord-tenant disputes without every issue heading to court.

A Ban on Junk Fees

The PRO would bar hidden "junk" fees — think application and processing fees stacked on top of rent — and require that any amount charged to a renter reflect an actual, documented cost. This lines up with the direction Chicago already takes on charges like late fees and application fees, where the ordinance caps or constrains what you can charge. If it passes, "standard" fees that don't map to a real cost would be a liability rather than a revenue line.

What This Would Mean for Landlords

It isn't law yet, but the direction is clear, and small landlords in particular are better off getting ahead of it than reacting later. A few practical moves:

• Tighten your paper trail now. A just-cause regime rewards clean documentation — dated records of lease violations, careful notice timing, and honest, itemized charges. That's good practice today and near-mandatory if this passes.
• Know whether you'd have to register. If you own covered units, budget for the per-unit fee — and check whether your building fits an exemption (owner-occupied six-or-fewer is the big one).
• Rethink no-fault turnover. If your plans involve a gut rehab, condo conversion, or demolition, factor potential relocation-assistance costs into the math.
• Audit your fees. Any charge that isn't tied to a real, documented cost is exactly what a junk-fee ban targets.
• Watch the calendar. A Council vote is hoped for later in 2026, with a January 2027 effective date if it passes — so there's a window to prepare, not panic.

Where It Stands

Mayor Johnson introduced the ordinance in 2026, with the goal of a full City Council vote later in the year and a January 2027 effective date if it passes. It faces real opposition: landlord and real-estate groups argue the registry fee and just-cause rules add cost and complexity that ultimately raise rents, while tenant advocates point out that New York, Los Angeles, and nearby Evanston already run similar programs. Because it's still moving through the process, the details can shift — treat the specifics above as the current proposal, not a final rulebook.

For the full picture, see our rundown of all the 2026 Chicago & Illinois landlord law updates.

Key Takeaways

• The Protecting Renters Ordinance is a proposed overhaul of Chicago's 40-year-old RLTO — introduced in 2026, not yet passed
• It would require just cause to evict or decline to renew, with relocation assistance owed for no-fault removals
• It would create a citywide rental registry (~$20–$60 per unit/year), with exemptions for owner-occupied buildings of six units or fewer, nonprofits, and CHA/Housing Trust Fund units
• It would ban junk fees and require charges to reflect actual, documented costs
• A new Bureau of Rental Housing Services would handle complaints and enforcement
• Target timeline: Council vote in late 2026, effective January 2027 if passed — provisions may change