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Renting in Chicago often raises many questions in the minds of new renters, especially about the cost of living. Many wonder, “Is Chicago expensive to rent in?”
The answer varies by location, with areas like Sheffield ($3,600) or Greektown ($3,200) often having higher average monthly rent compared to Woodlawn ($1,000) or Albany Park ($1,300).
Another key concern is, “How much can a landlord legally raise rent in Chicago?” While there’s no strict limit on this, specific rules regarding notice periods and fairness apply to protect tenants against unfair rents.
In this guide, we’ll dive deeper into how much a landlord can raise rent in Chicago and other details of interest to tenants who want to balance cost and convenience in this third-most populous city in the United States.
Table of Contents
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How Much Can a Landlord Raise Rent in Chicago?
A landlord can raise rent as they see fit. No statewide rent control in Illinois means owners in Chicago are free to increase rent with no maximum limit.
But why doesn’t Chicago have rent control?
Illinois banned all municipalities from imposing any kind of rent control by passing the Rent Control Preemption Act of 1997, Sec. 5 of which clearly states:
“A unit of local government, as defined in Section 1 of Article VII of the Illinois Constitution, shall not enact, maintain, or enforce an ordinance or resolution that would have the effect of controlling the amount of rent charged for leasing private residential or commercial property.”
However, owners of properties that are a part of the Chicago Low-Income Housing Trust Fund Program (CHLITP) cannot raise the current rent by more than 5% per year, subject to revisions in the future. This means a rental unit with a $2,500 rent can only increase by $125 within a 12-month period.
How Much Can a Landlord Raise Rent in Chicago Per Year?
In Chicago, landlords can raise rent as much as they choose once per year, as no caps or restrictions apply under local or state law. However, they must provide tenants with proper advance written notice before implementing a rent increase to ensure it’s legally valid.
What Is the Limit for a Month-to-Month Rent Increase in Chicago?
What is the highest percentage a landlord can raise rent in Chicago for month-to-month tenancies? Again, a landlord can raise rent by any percentage for tenants on a month-to-month tenancy by providing the necessary notice.
Is There a Limit on Rent Increase in Chicago?
Is there a limit to how much rent can be increased in Chicago? No, there’s no limit on rent increases in Chicago. This means the landlord is legally free to raise rent by any amount they consider fit, based on factors like current rental market conditions in the city, the Consumer Price Index for All Urban Consumers (CPI-U), and supply and demand of housing.
How Often Can a Landlord Raise Rent in Chicago?
In Chicago, a landlord can raise rent as often as allowed by the lease agreement. The Residential Landlord and Tenant Ordinance (RLTO) doesn’t specify any limit on the frequency of rent hikes. However, the landlord cannot increase the rent until the lease term expires and unless the lease agreement explicitly allows it. For month-to-month tenancies, landlords have more flexibility but must adhere to notice requirements and avoid raising rent arbitrarily during the occupancy.
Rent Increase Notice in Chicago by Government
All landlords in the City of Chicago shall provide tenants with enough notice for any rent increase to be valid under the law, regardless of whether the building is owner-occupied and has six units or fewer. The Chicago City Council approved the Chicago Fair Notice Ordinance in July 2020, which requires:
- A 60-day notice if a tenant has lived in the apartment for more than 6 months but less than 3 years
- A 120-day notice if a tenant has completed more than 3 years in the apartment
For tenancies shorter than 6 months, most landlords typically follow the standard 30-day notice rule.
Can a Landlord Raise Rent More Than 10% in Chicago?
Yes, a landlord can raise rent by more than 10% in Chicago. This is because the city imposes no restrictions on the percentage by which landlords can increase rent at the end of the lease, provided adequate notice is served to tenants following Chicago’s Fair Notice Ordinance.
What Are the New Rental Laws in Chicago 2025?
Chicago has clear rental laws to protect tenants and guide landlords. These new rental rules cover security deposits, property access, subleasing, evictions, lease terminations, no retaliation, and general duties for both tenants and landlords. Let’s look at them below.
Security Deposit
In Chicago, landlords can only charge up to one and a half months’ rent as a security deposit, and this deposit must earn interest based on the average of the rates of interest, as of December 31, 2024, from Chase Bank, currently at 0.01%. Landlords also need to give tenants a receipt with their name, the date, and unit details. Within 30 days of a tenant moving out of the property, landlords must return the deposit in full or provide an itemized list of deductions for damages beyond normal wear and tear. This helps tenants feel secure about their money.
Access to Property
Tenants have the right to quiet enjoyment of their rental unit, which means landlords can only enter with proper notice in writing, usually 48 hours, unless it’s an emergency like a leak or fire. The notice should state the reason and time of entry, usually during business hours of the day and excluding weekends. This rule ensures tenants feel safe and in control of their space. If a landlord breaks this, tenants can report it and seek help from city officials.
Sublease
If the tenant ends a lease agreement before its official expiration date, Chicago’s Residential Landlord Tenant Ordinance requires landlords to accept a reasonable sublease without additional charges or fees under Section 5-12-120. However, the tenant must pay the difference if the landlord gets less rent from a new tenant, or subtenant, after early termination, covering the period until the original lease was supposed to end.
Eviction
Evictions in Chicago follow specific steps to protect tenants. Landlords can only evict tenants for valid reasons, like not paying rent or breaking lease terms. They must give written notice, such as a 5-Day Notice to Pay or Leave for rent non-payment or a 10-Day Notice to Comply or Quit for lease violations, before filing with the court. This process ensures fairness and gives tenants time to address issues or find new housing if needed. Additionally, self-help evictions, like changing locks in the absence of the tenant, are illegal.
Lease Termination
Tenants in Chicago can end a lease early under certain conditions. If a landlord violates the Chicago Residential Landlord Tenant Ordinance, like not making repairs, tenants may terminate with 30 days’ notice. Landlords aren’t required to re-rent the unit, but tenants can find a replacement with landlord approval to avoid liability. Breaking a lease without cause may also require paying rent until the landlord re-rents the unit. This rule balances tenant rights with landlord interests.
No Retaliation
Chicago has strict laws to protect tenants from landlord retaliation. They cannot evict, raise rent, or refuse to renew a lease just because a tenant complains about repairs or reports code violations. If a tenant exercises their rights, landlords must not punish them. For example, filing an eviction after a repair request is illegal. Tenants can seek legal help if retaliation happens. This rule encourages tenants to speak up without fear and keeps landlords accountable.
How to Manage Your Rental Property and Rent Collection?
How to manage your rental property and rent collection online? Having software for landlords and property managers is really important for managing rent collection and properties smoothly. It makes life easier by automating tasks that can take a lot of time if done manually otherwise. For example, collecting rent online through software means tenants can pay with a few clicks using credit cards, debit cards, or bank transfers. This cuts down on late payments because the system can set up auto-pay, reminding tenants when rent is due.
Software also helps keep track of all properties in one place. Landlords with more than one unit can see which ones are rented, check maintenance needs, and store tenant details without digging through papers. This organization prevents confusion and helps plan repairs or upgrades faster. If a tenant reports a gas leak, the software can log it and send it to the right person to fix it, keeping everything on schedule.
Plus, property management software protects both landlords and tenants. Software provides records of payments and agreements, which can be useful if disputes arise. It also saves money by avoiding hidden fees or extra costs from manual methods.
How RentPost Helps in Managing a Rental Property and Rent Collection in Chicago?
RentPost is an all-in-one, cloud-based property management software for landlords and property managers alike. It comes with all the essential features required to effortlessly manage a rental property, from online rent collection to tenant screening.
- Real-Time Payment Tracking: Track rent payments and outstanding balances in real-time, with the status of each payment just a click away.
- Tenant Screening: Screen tenants end-to-end with thorough background checks, credit checks, eviction history, identity verification, and more.
- Automatic Payment Reminders: Automated payment reminders mean no more late rent payments. RentPost Pro automatically calculates and applies late fees based on the schedules you define, so you never have to chase payments again.
- Financial Reports on Your Fingertips: Get valuable insights into your rental property’s finances through income and expense reports. Identify the right time to adjust rent prices based on your property’s performance.
- Easily Scalable Your Rental Business With RentPost: RentPost makes it easy to add new units and tenants as your rental portfolio grows, helping you scale your business with minimal effort.
👉 Learn rent increase laws in different US states:
- How much can you raise rent in California?
- How Much Can You Raise Rent in New Jersey?
- How Much Can You Raise Rent In Florida?
- How much can you raise rent in NYC?
- How Much Can You Raise Rent in Oregon?
- How Much Can You Raise Rent in Los Angeles?
- How Much Can You Raise Rent in San Diego?
- How Much Can You Raise Rent in Pennsylvania?
- How Much Can You Raise Rent in Massachusetts?
Raise Rent in Chicago: FAQs
Can a Landlord Raise the Rent Without Giving Notice in Chicago?
No, landlords cannot raise rent in Chicago without giving notice. The Fair Notice Ordinance requires landlords to provide a 60-day notice before raising rent if tenants have lived in the apartment for more than 6 months but less than 3 years. This increases to 120 days of notice if the property has been occupied for 3+ years.
Do Rent Increase Laws Apply to All Types of Properties in Chicago?
Most rental units in Chicago follow rent increase laws, but some are exempt, like owner-occupied buildings with 6 or fewer units. Subsidized housing or single-family homes may also have different rules. It’s recommended to check your lease and local laws to be sure.
Are There Exceptions to the Rent Cap in Chicago?
Chicago doesn’t have a general rent cap, but some properties, like those in The Chicago Low-Income Housing Trust Fund, limit increases to 5% yearly. Other exceptions depend on lease terms or specific housing programs.
Is Rent Control Still in Effect in Chicago in 2025?
No, Chicago doesn’t have rent control in 2025. Illinois law bans it through its Rent Control Preemption Act, so landlords can raise rent as much as they want with proper notice. Some local rules offer tenant protections, but no strict caps exist as such.
Can Rent be Increased During a Fixed-Term Lease in Chicago?
No, rent cannot be increased during a fixed-term lease in Chicago unless the lease allows it. Rent can only increase when the lease ends or for month-to-month tenants with proper notice.
What Are Tenants’ Rights if They Can’t Afford a Rent Increase in Chicago?
If tenants cannot afford a rent increase in Chicago, ideally, they should negotiate with the landlord or seek legal help, especially if they consider the new rent as retaliatory. Tenants can contact groups like Legal Aid Chicago for advice.
What Happens if a Landlord Increases Rent Without Following the Law in Chicago?
If a landlord increases rent without following the law in Chicago, tenants can stay at the current rent for the required notice period or sue for damages. Legal action may include 2 months’ rent or double the harm caused.
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