Help Protect Chicago’s Housing Market: Speak Out Against Illinois HB3564
A new Illinois legislative proposal—titled Illinois HB3564—is currently under review in the Illinois Senate, and it threatens to reshape how rental housing operates across our city and state. While the bill is framed as tenant-friendly, the long-term impact could severely reduce housing availability, limit property owner protections, and create additional barriers for those trying to invest in or provide quality rental housing.
Under Illinois HB3564, property owners and managers would face new statewide restrictions. The biggest of these proposed restrictions are:
- Capping late fees at just 1% of monthly rent
- Limiting application fees to $50
- Banning all move-in fees (including any renamed or repackaged versions)
This proposal is especially harmful in large, heavily regulated cities like Chicago, where the Residential Landlord and Tenant Ordinance (RLTO) already makes accepting security deposits risky and financially impractical for many housing providers. Without the ability to charge reasonable move-in fees to offset turnover costs, small and mid-sized housing providers will bear increased financial burdens that could force them to scale back or exit the rental market entirely.
Why This Matters
Legislation like Illinois HB3564 doesn’t just impact landlords and Chicago property managers, it impacts entire neighborhoods and the individuals who live in them. By restricting essential operational tools for landlords and property managers, this bill risks:
- Reducing the supply of safe and affordable housing
- Discouraging property maintenance, upgrades, and improvements
- Increasing operational losses for independent property owners
- Destabilizing the rental market by making housing less accessible
While the intention of the bill may be to protect renters from excessive fees, it overlooks the financial realities of managing rental properties, especially in markets with already strict rental ordinances like Chicago.
How You Can Help
We’re calling on all Illinois and Chicagoland landlords, property owners, real estate professionals, property managers, and community members to speak out against Illinois HB3564 by taking these two quick actions:
- Email Your State Senator and the Illinois Senate Executive Committee
Send an email with a personalized message including your property address and relevant experience in the rental market. Consider making the subject line stand out for greater impact.
Email Your Representative Here. - Submit a Witness Slip Opposing Illinois HB3564
This online form takes only a few minutes and signals your official position to our lawmakers, who are directly responsible for the bill passing. Be sure to mark yourself as an Opponent when completing the form.
Submit Your Witness Slip Here
Make Your Voice Count
The Senate Executive Committee reviews public feedback before voting on Wednesday, May 14th. Every email and witness slip they receive greatly increases the pressure to reject this harmful statewide proposal. By opposing Illinois HB3564, we can advocate for more quality housing across the Illinois and Chicagoland markets. Thank you for standing with Chicago’s property owners, housing providers, and the future of our neighborhoods.
If you have any questions on Illinois HB3564 or its impact on the Chicago real estate market, please contact us at info@pearsonrealtygroup.com.
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