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Author: Mark Ainely | Partner GC Realty & Development & Co-Host Straight Up Chicago Investor Podcast
In July 2020, the City of Chicago approved the Fair Notice Ordinance, which significantly changed the notice requirements for landlords looking to non-renew a lease, terminate a tenancy, or raise rent. Then in June 2021, Cook County rolled out its own Residential Tenant Landlord Ordinance (RTLO) that brought similar protections to suburban Cook County. If you own rental property anywhere in the Chicagoland market, understanding these notice requirements is essential to staying compliant and avoiding costly mistakes.
Most compliance issues start with one small mistake.
Download “What You Must Know About the Cook County RTLO” and clearly understand what suburban landlords must follow.
Protect your investment. Stay informed.
Chicago Fair Notice Ordinance
The Fair Notice Ordinance amended the Chicago Residential Landlord and Tenant Ordinance (RLTO) and created a tiered notice system based on how long a tenant has lived in the unit. These rules apply to ALL Chicago rental units, including owner-occupied buildings with six units or fewer. Whether a tenant has a written year-long lease or an informal month-to-month agreement, these notice periods apply.
Lease Termination / Non-Renewal Notice (Chicago)
Under the ordinance, landlords must provide:
30 days of notice if the tenant has lived in the unit for less than six months
60 days of notice if the tenant has lived in the unit for more than six months but less than three years
120 days of notice if the tenant has lived in the unit for more than three years
Rent Increase Notice (Chicago)
The same tiered notice structure applies when a landlord wants to raise rent:
30 days of notice if the tenant has lived in the unit for less than six months
60 days of notice if the tenant has lived in the unit for more than six months but less than three years
120 days of notice if the tenant has lived in the unit for more than three years
What Happens If a Landlord Fails to Give Proper Notice?
If a landlord fails to give the required notice, tenants have the right to remain in the unit for the full required notice period or pay the prior rent amount for the required notice period. This is a big deal. If you serve a 30 day notice on a tenant who has been in your unit for four years, you just gave yourself a 120 day problem.
These notice requirements do not apply if the landlord has terminated the rental agreement due to nonpayment of rent, material lease violations, disturbance of others, or abandonment of the unit.
One-Time Right to Cure
The Fair Notice Ordinance also gave tenants a one-time right to cure in nonpayment of rent eviction cases. A tenant can dismiss the eviction case and remain in the unit by paying the unpaid rent plus the landlord’s court filing fees (not attorney’s fees) at any time before a judge issues a formal eviction order (order of possession). This right can only be used once.
Want to understand more about the nuances of Cook County Evictions check out this article.
Cook County Residential Tenant Landlord Ordinance (RTLO)
In January 2021, the Cook County Board of Commissioners passed its own Residential Tenant Landlord Ordinance, which went into effect on June 1, 2021. The Cook County RTLO applies to most residential rental units in suburban Cook County. It does not apply to the City of Chicago, Evanston, or Mount Prospect, as those municipalities have their own ordinances.
Key notice provisions under the Cook County RTLO include:
60 days of notice required for lease non-renewal
Tenants are not required to acknowledge or respond to renewal notices more than 60 days before lease expiration
Landlords must attach a summary of the RTLO to every lease and renewal
Late fees are capped at $10 for the first $1,000 in monthly rent, plus 5% on anything above $1,000
Security deposits capped at 1.5x monthly rent
Tenants also get a one-time right to “pay and stay” in nonpayment eviction cases
Owner-occupied buildings with six units or fewer are exempt from most provisions (except anti-lockout protections), similar to the Chicago RLTO exemption.
What About Kane, DuPage, Will, and Lake Counties?
As of this writing, Kane, DuPage, Will, and Lake Counties do not have their own tenant-landlord ordinances with extended notice requirements. Landlords in these counties follow Illinois state law, which only requires 30 days of notice for month-to-month tenancies and 60 days for year-to-year tenancies. There is no tiered notice system based on how long a tenant has occupied the unit.
However, here is our recommendation: even though the Fair Notice Ordinance and the Cook County RTLO don’t technically apply in the collar counties, adopting the same notice timelines as a best practice makes a lot of sense. Here’s why:
One process across your entire portfolio. If you own properties in both Cook County and the suburbs (which many Chicagoland investors do), having a single, consistent notice process eliminates the risk of accidentally applying the wrong timeline to the wrong property. Mistakes happen when you manage different notice requirements across different jurisdictions.
You’re always compliant. If you default to the most restrictive notice requirements across the board, you never have to worry about which municipality or county your property falls under. You’re covered.
Regulations only move in one direction. We have seen the trend in the Chicagoland market. Chicago passed the Fair Notice Ordinance in 2020. Cook County followed with the RTLO in 2021. It would not surprise anyone to see collar counties adopt similar requirements down the road. Getting ahead of it now means you won’t be scrambling to adjust later.
It’s just good business. Giving your tenants adequate notice builds goodwill, reduces turnover friction, and protects your reputation as a professional landlord.
Notice Requirements at a Glance
Lease Termination / Non-Renewal Notice:
*Illinois state law requires 30 days for month-to-month and 60 days for year-to-year tenancies. No tiered system exists in the Chicago collar counties.
The Bottom Line
The regulatory landscape for landlords in the Chicagoland market has gotten more complex since 2020. Between the Chicago Fair Notice Ordinance, the Cook County RTLO, and the always-evolving Illinois state laws, keeping up with notice requirements is more important than ever. Our advice: default to the most protective notice timelines across all your properties, regardless of which county or municipality they’re in. One process. No confusion. No compliance risk.
For further information, check out the City of Chicago Know Your Rights page and the Cook County RTLO page for full ordinance details and resources.
This is exactly the type of regulatory knowledge that separates professional property managers from the rest. At GC Realty & Development, LLC, we stay on top of every ordinance change across the Chicagoland market so our investor clients don’t have to.
Don’t Go At This Alone
This is a lot of information you need to know if you plan to invest here in the Chicago market and it may seem overwhelming but real estate investing in Chicago is a team sport. Who is on your real estate investing team? Do you have a team? GC Realty & Development has a team of resources and we are willing to share all of our 20+ years of experience in both real estate investing and Property Management in the Chicago market. We will do this whether you hire us or not.
What gets me up in the morning and keeps me going 12+ hours a day of work is the ability to add value to Chicago real estate investors. If we connect you will here my say our goal of our company is to have value to have everyone we come in contact with and in return we hope one day you will hire us for our Tenant Placement or Property Management Services You can also refer us to someone you know that needs Tenant Placement or Property Management Services, or I will take a simple 5 Star Google review. We love the opportunity when we get all three from current and aspiring investors we get to help!
Reach out today!
Partner / Co-Host of Straight Up Chicago Investor Podcast
