Chicago RLTO Compliance: What Every Chicago Landlord Needs to Know
The Chicago Residential Landlord and Tenant Ordinance (RLTO) is one of the most tenant-protective rental laws in the country. Non-compliance is expensive. Here's what you need to know.
The cost of non-compliance is high
The Chicago RLTO (Municipal Code Chapter 5-12) was enacted in 1986 and has been strengthened multiple times since. It establishes specific requirements for security deposits, lease disclosures, notice procedures, and tenant remedies.
The penalties for non-compliance are significant. A landlord who fails to properly handle a security deposit can owe the tenant twice the deposit amount plus attorney's fees. A landlord who retaliates against a tenant for exercising their rights can face substantial damages.
Important Note
This guide provides general information about the RLTO. It is not legal advice. For specific situations — especially security deposit disputes, evictions, or lease drafting — consult a licensed Illinois attorney.
Four areas of RLTO compliance every landlord must get right
Security Deposit Requirements
- Security deposits must be held in a federally insured interest-bearing account
- The bank name, address, and account number must be disclosed to the tenant in writing
- Interest must be paid annually (or credited toward rent) at the rate set by the City Comptroller
- Deposits must be returned within 30 days of lease end (or 45 days if itemizing deductions)
- Itemized deductions must be accompanied by receipts or estimates
- Failure to comply can result in the tenant recovering 2x the deposit amount plus attorney's fees
Required Lease Disclosures
- RLTO summary must be attached to every lease
- Radon disclosure required for ground-floor and basement units
- Lead paint disclosure required for pre-1978 buildings
- Bed bug disclosure required
- Carbon monoxide and smoke detector disclosure
- Landlord's name and address (or authorized agent) must be in the lease
Tenant Rights and Remedies
- Right to repair and deduct for habitability issues (up to $500 or half monthly rent)
- Right to terminate lease for material non-compliance by landlord
- Right to withhold rent if landlord fails to maintain habitable conditions
- Protection against retaliatory eviction (12-month presumption)
- Right to receive notice of building code violations affecting the unit
- Right to organize with other tenants without retaliation
Late Fees and Rent Increases
- Late fees capped at $10/month for first $500 of rent, 5% for amounts over $500
- Late fees may only be charged after a 5-day grace period
- Rent increases require proper written notice (30 days for month-to-month, 30 days before lease end for annual leases)
- No rent increase during a lease term without tenant consent
Chicago RLTO vs. Cook County CRTLO
Properties in Chicago are governed by the RLTO. Properties in unincorporated Cook County and many suburbs are governed by the CRTLO. If you own property in both jurisdictions, you need to know both.
| Requirement | Chicago RLTO | Cook County CRTLO |
|---|---|---|
| Security deposit interest | Required annually at City Comptroller rate | Required annually at Cook County rate (different rate) |
| RLTO summary attachment | Required | CRTLO summary required (different document) |
| Late fee grace period | 5 days | 5 days |
| Deposit return timeline | 30 days (45 with itemization) | 30 days (45 with itemization) |
| Retaliation protection | 12-month presumption | Similar protection |
| Applicability | City of Chicago only | Unincorporated Cook County + many suburbs |
Common RLTO questions
Want RLTO compliance handled for you?
Altus manages all RLTO compliance for our rental property clients — security deposits, disclosures, notice procedures, and collections. Request a proposal to see how we can help.