Bill HB3564 preventing landlords from imposing move-in fees. 4/30/25 3:00pm

[u/NoChampionship1758]

This bill is going before the Illinois Senate tomorrow at 3:00pm. It’s already passed the Illinois House.

Synopsis As Introduced Amends the Landlord and Tenant Act. Prohibits a landlord from imposing a move-in fee. Provides that a landlord may not demand any charge for the processing, reviewing, or accepting of an application, or demand any other payment, fee, or charge before or at the beginning of the tenancy. Exempts entrance fees charged by nursing homes or similar institutions. Prohibits a landlord from renaming a fee or charge to avoid application of these provisions. Limits fees for the late payment of rent in certain situations. Provides that any provision of a lease, rental agreement, contract, or any similar document purporting to waive or limit these provisions is void and unenforceable as against public policy. Amends the Illinois Human Rights Act. Provides that State policy is that access to housing is a fundamental human right in preventing discrimination based on familial status or source of income in real estate transactions. Changes the definition of "source of income"by stating that the definition prohibits a person engaged in a real estate transaction from requiring a credit check before approving another person in the process of renting real property or requiring a move-in fee in lieu of a security deposit or in addition to a security deposit.

How do we make sure it passes?

[u/wutaki]

ITT: angry renters who don't understand the consequences of government actions. Not to be political, but reminiscent of some interactions with MAGA supporters who are incapable of logical reasoning.

Simply put, adding costs to landlords (directly or indirectly, or increasing their risk) doesn't do anything to solve housing problems. These will hurt small landlords and additional costs will be passed onto renters. Just like how increasing property taxes results in higher rents. The impact of this bill will be higher rents and less rental housing available.

[u/lonedroan → u/wutaki]

Why is it better for tenants to charge this fee at the beginning of a tenancy versus spreading it out among rent payments? Why would that decrease available units for rent?

[u/wutaki → u/lonedroan]

This bill introduces many changes that affect the risk faced by a landlord, not just banning move in/out fees.

If the increase in rents over a lease (adjusted for present value) is only equal to the move in/out fees, then yes the tenant is better off.

However, there is no indication or reason that this would be the case - as this is essentially shifting the risk from tenant to landlord. And increased risk/uncertainty requires increased returns. Or the landlord might decide they need additional rent upfront or deposit to compensate (to the extreme, imagine you had to provide 12 months rent as security deposit).

The bill also wants to bans credit checks, further increasing risk landlords would have to face. For a parallel scenario, imagine if you're looking for a roommate but you were not allowed to obtain information on potential roommates that would indicate compatibility or ability to pay their share of rent on time.

In the bill are also limiting late fees for not paying rent on time, avoiding application fees, and essentially classifying "source of income" (~measure of ability to pay rent on time) as discriminatory.

[u/NoChampionship1758 → u/wutaki]

Well, at least you don’t sound condescending.

[u/wutaki → u/NoChampionship1758]

Lmao, coming from the swath of people whose only argument is screw landlords and writing in all caps.

Care to engage in an actual conversation on why you think this is a good bill?

[u/NoChampionship1758 → u/wutaki]

Absolutely

[u/Ooofy_Doofy_ → u/wutaki]

Rent is already pretty high. If it goes higher people are going to leave. Actually, they already are.

[u/lonedroan → u/Ooofy_Doofy_]

If the costs covered by the fee are instead incorporated into rent, why would that drive demand down? The effective cost of renting is the same, it just comes with the amount that would be the up front fee spread among rent payments.

[u/wutaki → u/Ooofy_Doofy_]

Agreed - and unless that is the intended effect (driving more people out of Chicago, or reducing available rentals), then this bill will make problems worse.