A pending bill in the Illinois Senate, HB3564, aims to limit rental fees and increase transparency, but it raises real concerns for landlords and property managers. While I’m fully in favor of transparency and clear disclosure of fees, this bill adds unnecessary restrictions that could reduce housing availability and create inequities in how different types of tenants are treated.
The bill would prohibit landlords from charging move-in fees on top of security deposits and would require that any non-optional fees be listed on the first page of the lease. It also limits background check fees to the **actual cost or $20, whichever is less**. That sounds good on the surface, but background checks often cost more than $20, especially if they’re comprehensive. On top of that, the structure penalizes certain tenant groups. For instance, a group of three unrelated adults could incur three background check fees, while a married couple with two kids might only require one or two checks. That’s not exactly fair or consistent, and it ends up making single renters or shared housing more expensive to process than traditional families.
In my view, landlords should be free to charge reasonable fees that reflect actual costs… as long as they clearly disclose them. Tenants are smart—if fees are too high or unreasonable, they’ll walk. But artificially limiting charges like background checks or move-in fees—especially when these are common in the industry—risks shrinking rental options and pushing landlords to increase rent instead to cover expenses. Agents and investors should keep a close eye on this bill, which could shift how leases are structured and how landlords recover costs going forward.
You can find the full text of the bill below.
