Does HB 3564 apply to my rental?
Section 35 does not apply to leases for units in owner-occupied premises with six units or fewer. Everything else in Illinois is covered for leases entered into from January 1, 2027.
How the exemption works
Two conditions must both be true: the premises are owner-occupied, and they contain six units or fewer. A landlord who owns five single-family homes and lives elsewhere is covered. An owner living in a three-flat is exempt for that building.
Exempt does not mean no rules
Local ordinances have their own tests. Chicago's RLTO and Cook County's RTLO each have owner-occupied carve-outs with different thresholds, and they set their own rules on deposits and late fees. Disclosing fees clearly is still the best way to avoid disputes, and a fee page costs nothing.
Make your disclosure in about two minutes. Put every required fee on one page with a link you can paste into any listing, plus a print-ready block for page one of your lease.
Frequently asked questions
I own a 4-unit building but do not live there. Am I exempt?
No. The exemption requires the owner to live in the building. Without owner occupancy, a 4-unit building is covered.
I live in a 7-unit building I own. Am I exempt?
No. The exemption only covers owner-occupied premises with six units or fewer.
Does the law cover a lease I signed in 2026?
No. It covers leases entered into on or after January 1, 2027. A renewal signed in 2027 is covered.
Related
Not legal advice. Confirm your lease with an Illinois attorney.