This handout is for Realtors representing landlords in the city of Chicago.

1. PROTECTING YOUR LANDLORD CLIENT:
A Realtor’s Guide to Landlord-Tenant Law in Chicago
BRADFORD MILLER LAW, P.C.
321 N. Clark, Suite 500
Chicago, IL 60654
Main: 312-238-9298
Fax: 312-379-3163
Introduction: This is meant to be for Realtors and for informational purposes only. Every
situation is different so please consult with an Attorney before acting on any information.
When Realtors list a condo for rent in the City of Chicago, they need to inform their landlord
client that there are many laws that govern the landlord-tenant relationship. Chicago in particular
is extremely tenant-friendly, which means landlords need to be extra careful that they always
follow the law. In the City of Chicago, the Chicago Residential Landlord Tenant Ordinance
(“RLTO”) prevails over most landlord-tenant relationships. Each brokerage office should have
on file a “summary” of the RLTO. I highly suggest reading the summary to give you a basic
knowledge of the law in Chicago. Also, as a side note, the summary and all of the appropriate
riders are on the Chicago Association of Realtors website under Forms/Contracts.
The Chicago Residential Landlord Tenant Ordinance
Every Realtor should have a basic understanding of the Chicago Residential Landlord Tenant
Ordinance (“RLTO”) to protect their landlord client. Why? Because if the landlord fails to
follow the RLTO, the tenant may be entitled to significant compensation. And if that happens,
it’s a safe bet that the Realtor will lose any future business from that landlord. After all, the
landlord client will naturally blame the Realtor because they had the listing and most likely
provided the lease, etc. I have heard many, many times from angry landlords that their Realtor
never told them about the RLTO.
The RLTO was enacted in 1986 with the main purpose being to protect and establish tenants
rights. Right now, because of the real estate market, many would-be sellers are becoming first
time landlords. Instead of selling their property, they are renting it out. And it is typically first
time landlords that get in the most trouble, because they often have never heard of the RLTO.
TIP: It is a good idea to have an Attorney look over the lease before having the tenant sign it.
Paying the Attorney for an hour of their time could end up saving the landlord thousands of
dollars later.
This is intended to supply general information to the public. Although the information is generally accurate, it cannot be
guaranteed. The nature of the law changes quickly, and people should always insure that legal information is accurate
before relying on it. The above information applies the law of the State of Illinois and City of Chicago. This information is
necessarily brief and may or may not apply to your situation. In all cases, PLEASE, consult a lawyer before acting. The
reader should not consider this information to be an invitation for an attorney-client relationship, should not rely on
information provided herein, and should always seek the advice of competent counsel in the reader's state. It is possible
that this can be considered ADVERTISING MATERIAL in addition to general information. It is not intended to be
solicitation or legal advice.

2. Generally speaking, the RLTO applies to all landlords except: Dwelling units in owner-occupied
buildings containing six units or less; hotels, motels, inns, bed- and-breakfast establishments,
rooming houses and boardinghouses, hospitals, convents, monasteries, extended care facilities,
asylums or not-for-profit homes for the aged, temporary overnight shelters, transitional shelters,
or in dormitories owned and operated by an elementary school, high school or institution of
higher learning; A dwelling unit that is occupied by a purchaser pursuant to a real estate purchase
contract prior to the transfer of title to such property to such purchaser, or by a seller of property
pursuant to a real estate purchase contract subsequent to the transfer of title from such seller; A
dwelling unit occupied by an employee of a landlord whose right to occupancy is conditional
upon employment in or about the premises; and a dwelling unit in a cooperative occupied by a
holder of a proprietary lease.
Common RLTO problems
Security Deposit Issues: See 5-12-080 of the RLTO
-According to the RLTO, the landlord MUST put the tenant’s security deposit in a separate,
interest bearing account. The interest rate is set forth every year by the City of Chicago. The
security deposit should NEVER go into a landlord’s personal account, even if it is only for one
day. The landlord and Realtor should ALWAYS ask for the security deposit to be written on a
separate check from the rent to prevent it from being seen as co-mingling. The penalty for not
properly handling the security deposit is equivalent to two times the amount of the security
deposit plus interest!
-Another example of where landlords get in trouble is not giving a proper receipt for the security
deposit. According to section 5-12-080 of the RLTO, “any landlord or landlord’s agent who
receives a security deposit from a tenant or prospective tenant shall give said tenant or
prospective tenant at the time of receiving such security deposit a receipt indicating the amount of
such security deposit, the name of the person receiving it and, in the case of the agent, the name
of the landlord for whom such security deposit is received, the date on which it is received, and a
description of the dwelling unit. The receipt shall be signed by the person receiving the security
deposit.” Failure to comply with this subsection shall entitle the tenant to immediate return
of security deposit and two times the amount of the security deposit plus interest.
-Landlords also get in trouble when it comes to paying interest. Generally speaking, interest
needs to be paid to the tenant every 12 months – even if the tenant renews their lease. This
interest is due within 30 days from the end of the 12 month period. See Section 5-12-080 for the
different situations concerning interest on security deposits.
Lease Issues
-What is the number one common problem REALTORS face with leases? They forget to attach
the latest summary of the RLTO. That summary contains vital information that the City of
Chicago wants the tenant to have. Realtors also need to attach the latest security deposit interest
rate disclosure to each lease. Failure to attach the proper summary can result in a $100 fine
This is intended to supply general information to the public. Although the information is generally accurate, it cannot be
guaranteed. The nature of the law changes quickly, and people should always insure that legal information is accurate
before relying on it. The above information applies the law of the State of Illinois and City of Chicago. This information is
necessarily brief and may or may not apply to your situation. In all cases, PLEASE, consult a lawyer before acting. The
reader should not consider this information to be an invitation for an attorney-client relationship, should not rely on
information provided herein, and should always seek the advice of competent counsel in the reader's state. It is possible
that this can be considered ADVERTISING MATERIAL in addition to general information. It is not intended to be
solicitation or legal advice.

3. for the landlord and gives the tenant the right to terminate the lease upon written notice! In
other words, the tenant can basically break their lease anytime they want!
Tip: When the tenant is signing the lease, also have them sign their name at the bottom of each
page of the RLTO summary and security deposit interest rate disclosure to prove they received
it.
-Landlords must also disclose their information to the tenant. A landlord or any person
authorized to enter into an oral or written rental agreement on the landlord’s behalf shall disclose
to the tenant in writing at or before the commencement of the tenancy the name, address, and
telephone number of: (a) The owner or person authorized to manage the premises; and (b) A
person authorized to act for and on behalf of the owner for the purpose of service of process and
for the purpose of receiving and receipting for notices and demands. Failure to comply can give
the tenant the right to terminate the lease and possibly one months rent or actual damages
whichever is greater.
Tip: Landlords CANNOT use a PO Box as their address on the lease. Why? Because this is
insufficient for service of process (if they get sued).
General advice for Realtors working with landlords
-Emphasize to your landlord client that Chicago is extremely tenant friendly. Landlords get sued
all of the time and almost always lose. Therefore, it is important that they familiarize themselves
with the RLTO.
-At a minimum, you as their Realtor should familiarize yourself with the RLTO. Every
brokerage office should have the latest summary of the RLTO.
-Recommend to your client that an Attorney look over the lease for possible RLTO violations.
-Keep in mind that if the landlord is sued for RLTO violations, they will likely be angry with
YOU and at a minimum you will likely lose them as a client.
About our law firm
Bradford Miller Law, P.C. focuses on Real Estate Transactions, Landlord Tenant Law, and Estate
Planning. If you or your client need legal representation, feel free to contact the office anytime.
BRADFORD MILLER LAW, P.C.
321 N. Clark, Suite 500
Chicago, IL 60654
Main: 312-238-9298
Fax: 312-379-3163
This is intended to supply general information to the public. Although the information is generally accurate, it cannot be
guaranteed. The nature of the law changes quickly, and people should always insure that legal information is accurate
before relying on it. The above information applies the law of the State of Illinois and City of Chicago. This information is
necessarily brief and may or may not apply to your situation. In all cases, PLEASE, consult a lawyer before acting. The
reader should not consider this information to be an invitation for an attorney-client relationship, should not rely on
information provided herein, and should always seek the advice of competent counsel in the reader's state. It is possible
that this can be considered ADVERTISING MATERIAL in addition to general information. It is not intended to be
solicitation or legal advice.