Chicago’s Residential Landlord and Tenant Ordinance (RLTO) Explained
The Chicago RLTO for landlords: which units it covers, security deposit and interest rules, the late fee cap, notice periods, entry, and pending 2026 changes.
By Seayora Editorial Team · Published · Facts checked · 4 min read
Short answer: Chicago’s Residential Landlord and Tenant Ordinance covers most rental units in the city, except units in owner-occupied buildings with six or fewer units and a few other categories. It requires a deposit receipt, a federally insured Illinois account, annual interest at the rate the City Comptroller sets (0.01% for 2026) and return within 45 days. Late fees are capped at $10 on the first $500 of rent plus 5% of the rest, landlords give two days’ notice to enter, and the Fair Notice rules require 30, 60 or 120 days’ notice to end a tenancy or raise rent.
Key takeaways
- A deposit mistake can cost two times the deposit plus interest, so the receipt and account rules matter.
- Interest on deposits held over six months is paid within 30 days after each 12-month period.
- Notice to raise rent or not renew depends on how long the tenant has lived there: 30, 60 or 120 days.
- A summary of the RLTO must be attached to every written lease and renewal.
Which units does the RLTO cover?
The ordinance, Chapter 5-12 of the Municipal Code, covers most rental units in Chicago. It does not cover units in owner-occupied buildings with six or fewer units, most units in hotels, motels and rooming houses, dormitories, shelters, employee quarters, non-residential rentals or owner-occupied co-ops (City of Chicago, RLTO). Lease terms that conflict with the RLTO are unenforceable.
What are the security deposit rules?
- Give a signed receipt with the amount, the date, the name of the person receiving it, the owner’s name if received by an agent, and a description of the unit; an electronic receipt is allowed for an electronic payment (§ 5-12-080).
- Hold the deposit in a federally insured, interest-bearing account at a financial institution in Illinois, not commingled with your own money, and disclose the institution’s name and address in the lease or in writing within 14 days.
- Pay interest on a deposit or prepaid rent held more than six months, in cash or as a rent credit, within 30 days after the end of each 12-month rental period, at the rate the City Comptroller sets for the year the lease began: 0.01% for 2026 (City of Chicago).
- To deduct for damage, send an itemized statement with the cost of each repair, and copies of paid receipts, within 30 days after the tenant moves out.
- Return the deposit and any interest, less unpaid rent and documented damage, within 45 days after the tenant moves out.
A landlord who fails to comply with the deposit rules owes the tenant two times the security deposit plus interest. A landlord who pays interest on time but in the wrong amount can avoid that penalty by correcting it, plus $50, or explaining the calculation, within 14 days of the tenant’s written notice.
How much notice is required?
| Time in the apartment | Notice required |
|---|---|
| Less than six months | 30 days |
| Six months to three years | 60 days |
| More than three years | 120 days |
If a landlord gives too little notice, the tenant may stay for the required period or pay the prior rent for it (City of Chicago, Fair Notice). For nonpayment, a landlord gives five days’ written notice, but a tenant has a one-time right to end the eviction case by paying all back rent and the landlord’s court filing fees before a judge issues an eviction order (RLTO summary).
What else must a Chicago landlord do?
- Charge no late fee above $10 a month on the first $500 of monthly rent plus 5% of rent above $500. On $700 rent, that is $10 plus 5% of $200, or $20.
- Give two days’ notice before entering, except in an emergency.
- Give the tenant the owner’s or manager’s name, address and phone number, and disclose a foreclosure filing within seven days of being served.
- Attach the City’s RLTO summary to every written lease and renewal.
- Never lock a tenant out by changing locks, removing doors, cutting off heat or utilities or removing belongings; the fine is $200 to $500 for each day.
- Make a good faith effort to re-rent at a fair rent if a tenant moves out early.
What changes are pending?
Two competing proposals to overhaul the RLTO, the Mayor’s Protecting Renters Ordinance and an alternative from a group of aldermen, cleared City Council committees in September 2026, but as of October 23, 2026 the full Council had not adopted either one (City of Chicago, Protecting Renters Ordinance). Until one passes, the rules above are the law; check the City’s pages before relying on them.
Frequently asked questions
Does the RLTO apply to my two-flat?
Not if you live in it. Units in owner-occupied buildings with six or fewer units are excluded. The Fair Notice rules on notice periods still apply to all residential units in Chicago.
What interest rate do I pay on a Chicago security deposit in 2026?
0.01%, the rate the City Comptroller set for leases entered into in 2026, paid within 30 days after each 12-month rental period on deposits held more than six months.
What is the maximum late fee in Chicago?
$10 a month on the first $500 of monthly rent plus 5% of the rent above $500.
State-by-state rules
- How long does a landlord have to return a security deposit? — compared across 48 states and the District of Columbia
- Does a landlord have to pay interest on a security deposit? — compared across 13 states and the District of Columbia
- How much can a landlord charge for a late rent fee? — compared across 16 states and the District of Columbia
- How much notice does a landlord have to give before raising the rent? — compared across 28 states and the District of Columbia
- How much notice does a landlord have to give before entering? — compared across 23 states and the District of Columbia
Sources
- Residential Landlord and Tenant Ordinance, City of Chicago, Department of Housing
- Municipal Code of Chicago § 5-12-080, Security deposits, American Legal Publishing
- Security Deposit Interest Rates (2026), City of Chicago, Department of Housing
- Know Your Rights: Fair Notice Ordinance, City of Chicago, Department of Housing
- Residential Landlord Tenant Ordinance Summary, City of Chicago
- Protecting Renters Ordinance, City of Chicago, Department of Housing
How Seayora helps
Eviction navigator: For a Chicago property, lays out each eviction step with the Illinois statute and the RLTO section beside it.
This article is general information, not legal advice. Landlord-tenant law varies by state and city and changes often, so check the current rule for your property and talk to an attorney before acting on a dispute.
How we write and check these guides: editorial standards.
Related on Seayora
- D.C. Landlord-Tenant Law After the RENTAL Act: 2026 Guide — Guide. Washington, D.C. rules for 2026: the 10-day nonpayment notice and $600 floor, the 5% late fee cap, rent control caps of 4.1% and 2.1%, deposits and TOPA.
- State Lease Rules and the State Law Notice — Documentation. Each state’s rules about a residential lease’s deposit, late fees, notice periods and entry, with the statute behind each — checked against your lease before it is sent, and added to a template as a cited notice.
- New Jersey Landlord-Tenant Law: Good Cause, Deposits and Notices — Guide. New Jersey rules for landlords: good cause under the Anti-Eviction Act, the 1.5-month deposit cap and 30-day return, Truth in Renting and flood notices.
- Florida Landlord Law Changes, 2022 to 2026: What Is New — Guide. Every Florida landlord-tenant change since 2022: state preemption, 30-day notices, deposit alternatives, squatter removal, email notices, flood disclosure.
- Good Cause Eviction in New York City — coverage, the local rent standard and the notice — Documentation. Which of your NYC units the Good Cause Eviction law covers, the exemptions and how each is decided, the highest presumptively reasonable rent increase, and the § 231-c notice every lease and renewal must carry.
- Compliance Alerts & Required Filings — Feature. Seayora watches your properties for new violations and works out which recurring filings each building owes, turns both into a dated checklist, and emails you when something new appears. Live violation data for New York City; rule-based filing obligations across the NYC metro.