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What Is a Rent Control Law?
A rent control law or rent regulation is when a system of laws is put in place, typically administered by a court or public authority, set to protect the affordability of housing and tenants on the rental market. Rent control law is different from rent stabilization or regulation. With rent control law, tenants are not obligated to sign renewal leases as these controls are statutory. The rent can increase; however, increases are limited, and services and evictions must be regulated. Rent control law specifies a maximum percentage by which landlords can increase rent.
Does Chicago, Illinois Have a Rent Control Law?
In Chicago, Illinois, there is no rent control law. The government forbids this law. It is also not the only state in the United States with forbidden rent control laws. Rent control is not widespread in the United States. Only a few states have rent regulations, including New York, New Jersey, California, Maryland, and Washington D.C. are some that do. 31 out of 50 states have laws that preempt or forbid local governments from rent control laws.
Due to our ever-changing economy, rent regulation has been revived in certain cities and states in recent years. This is typically because there is a housing affordability crisis in that location. Oregon was the first state in the United States to enact a statewide rent control law in 2019. Since then, many other states have followed.
What Kind of Rent Regulation Does Chicago Have?
Although Chicago, Illinois, does not have a rent control law, it does have a Residential Landlord Tenant Ordinance. This provides protection to renters. However, it does not shield renters from landlords who wish to raise the rent at the end of the lease. It is important to note that the “end of the lease” can be annually or monthly. There is no limit to how much a landlord can increase rent in the entire state of Illinois. While certain cities, like Chicago, have the Residential Landlord Tenant Ordinance in place, it does not restrict raising rent.
Rights and obligations typically covered by the Ordinance include:
- Tenant’s general responsibilities
- Landlord’s right of access
- Security deposits and prepaid Rent
- Landlord’s general duties
- Identification of owner and agent
- Notice of conditions affecting habitability
- Landlord and tenant remedies
- Prohibition of retaliatory conduct by landlord
- Summary of Ordinance attached to the rental agreement
You can read more about these rights and the Residential Landlord Tenant Ordinance of Chicago on the City of Chicago website.
How Does the Residential Landlord Tenant Ordinance Impact Landlord-Tenant Relationships in Chicago, Illinois?
In Chicago, many landlords appreciate not having rent control laws. They enjoy the flexibility to adjust the rent as the market dictates and the economy changes each year. It can be upsetting, however, for tenants when the price of rent rises, and in some cases, makes housing impossible to obtain. This situation often pushes long-term residents out of neighborhoods that are being gentrified. In terms of the relationship between tenant and landlord, this can create hostility, aggression, sadness, and confusion.
Does a Landlord Have to Give a Notice for Increasing Rent?
Yes, a landlord in Chicago must provide advance notice to the tenant if they wish to raise the rent at the termination of the lease, whenever that may be. The advance notice must be 120 days if the renters have lived there for three or more years. If a renter has lived in a property for more than 6 months but less than 3 years, 60 days’ notice is required.
We Want to Serve You
We understand how challenging it is to understand the legal aspects of renting in Chicago. Here at Nery Richardson & Konewko LLC, we want to serve you and share knowledge on your rights as a renter or responsibilities as a landlord in Chicago, Illinois. To learn more, contact an experienced real estate attorney at Nery Richardson & Konewko LLC today by calling 773-582-7000.
