If you own rental property in Illinois, a few state laws that affect landlords have changed, and some older rules are still easy to get wrong. Here is what the statutes on the Illinois General Assembly website actually say, including a squatter provision that took effect January 1, 2026 and a new $50 limit on application fees.
Here’s everything you need to know and what you should do right now to stay compliant.
Smoke Detector and Carbon Monoxide Alarm Requirements
What the Law Requires
These rules come from the Illinois Smoke Detector Act (425 ILCS 60) and the Carbon Monoxide Alarm Detector Act (430 ILCS 135). They are not part of the Safe Homes Act, which deals with lease rights for survivors of domestic and sexual violence, and nothing in them took effect in 2026. The owner must supply and install the required devices. The main requirements:
- Carbon monoxide alarms within 15 feet of every room used for sleeping (the Act exempts some units with no nearby source of carbon monoxide)
- Smoke detectors within 15 feet of every room used for sleeping; in a single family home, on every story including the basement; and in buildings with more than one unit, at the top of each interior stairwell
- Hardwired smoke detectors, interconnected when more than one is required, in units newly built, rebuilt or substantially remodeled after December 31, 1987
- Battery powered smoke detectors that are newly installed, more than 10 years old, or not working must use a sealed, long term battery (since January 1, 2023, with exceptions for some monitored or wireless connected systems)
What You Need to Do
Immediate action items:
- Audit every property you own, walk through and document current detector locations
- Install compliant detectors where they’re missing
- Give one tenant in each unit written information on testing and maintaining the detectors and alarms, which both Acts require, and keep a copy
- Update lease agreements to reflect tenant responsibilities for maintaining working batteries
- Budget for annual compliance (estimate $50-150 per unit for detector upgrades)
Penalties for non-compliance: Willful failure to install or maintain a required smoke detector or carbon monoxide alarm is a Class B misdemeanor. For the sealed battery rule, the Smoke Detector Act allows a 90 day warning, then fines of up to $100 every 30 days until the problem is fixed or the fines total $1,500.
SB 1563: Police and Criminal Trespass (Effective January 1, 2026)
Senate Bill 1563 became Public Act 104-29, effective January 1, 2026. It adds one provision to the eviction article of the Code of Civil Procedure (735 ILCS 5/9-102): nothing in the eviction article prohibits law enforcement from enforcing criminal trespass, or stops officers from removing persons or property from the premises when there is a criminal trespass. It does not create a 7 day eviction or a new proof of ownership procedure.
Landlord Retaliation Act (Effective January 1, 2025)
The Landlord Retaliation Act (765 ILCS 721, Public Act 103-831) replaced the old Retaliatory Eviction Act on January 1, 2025. A landlord may not knowingly terminate a tenancy, increase rent, decrease services, bring or threaten a lawsuit for possession, or refuse to renew because a tenant in good faith complained of code violations to a government agency or community organization, asked for repairs required by code or the lease, organized or joined a tenants’ union, testified about the condition of the premises, or exercised any legal right. If the tenant’s protected activity came within one year before the landlord’s action, the law presumes the action was retaliatory unless the landlord proves a legitimate, non-retaliatory reason.
$50 Application Fee Limit (Public Act 104-479)
Public Act 104-479 adds a rental fee section to the Landlord and Tenant Act (765 ILCS 705/35). It limits a rental application fee, including background checks, to $50. A landlord may pass on a higher third party background check cost only by paying it up front and billing the applicant with receipts within 14 days. It applies to leases entered into after its effective date and does not apply to owner occupied buildings with 6 units or fewer. The General Assembly lists the effective date as January 1, 2027, while the text of the Act says July 1, 2026, so the safe course is to keep application fees at or under $50 now.
How MF Cashflow Handles Compliance
With 300+ units under management and decades in Chicago’s south and west suburbs, we’ve already updated our systems for 2026 compliance. When regulations change, professional management pays for itself through avoided penalties and streamlined compliance.
Need help navigating these changes? MF Cashflow, a marketing company operated by M Property Group LLC, specializes in keeping Chicago-area landlords compliant while maximizing returns. Schedule a free portfolio review to see how professional management can save you time, money, and legal headaches.
This is general information, not legal advice.
Need Help Managing Your Chicago Investment Property?
MF Cashflow & M Property Group LLC manage hundreds of rental properties across Chicago’s south and west suburbs. Book a free consultation or call (708) 719-0977.
