🏙️ Chicago RLTO Summary Disclosure

Chicago RLTO Summary Disclosure — Complete Guide

The Chicago Residential Landlord and Tenant Ordinance (RLTO) is the municipal law that governs most residential rental relationships within Chicago city limits. Codified at Chicago Municipal Code Chapter 5-12, the RLTO significantly expands tenant protections beyond what Illinois state law provides. One of the most important landlord obligations under the RLTO is § 5-12-170, which requires every lease for a covered unit to include an attached summary of the ordinance.

What is the Chicago RLTO?

The RLTO was enacted in 1986 and has been amended multiple times since. It provides a comprehensive framework of tenant rights and landlord duties that is substantially more protective than Illinois state law. The ordinance applies to most rental units in Chicago but has limited exceptions, notably for owner-occupied buildings with six or fewer units.

Which Properties Are Covered?

The RLTO applies to most residential rental units in Chicago. However, the following are generally exempt:

• Owner-occupied buildings with six or fewer units
• Hotel and motel units (unless they become the tenant’s primary residence)
• Dormitories and school-provided housing
• Unit owned by a cooperative occupied by a cooperative member
• Non-residential spaces like pure commercial rentals
• Shelters, employee housing incidental to employment, and certain institutional housing

Even for exempt properties, certain RLTO provisions (notably the prohibition on lockouts) still apply by operation of other Chicago ordinances and Illinois law.

Core RLTO Requirements Every Landlord Must Know

Security Deposits (§ 5-12-080)

The RLTO’s security deposit rules are among the strictest in the country and are the source of most landlord lawsuits. Requirements include:

• Hold deposits in a federally insured interest-bearing account at a Chicago-area bank
• Keep deposits separate from the landlord’s personal funds
• Provide written disclosure of the bank name and address
• Pay annual interest (rate set by City Comptroller) if held 6+ months
• Return the deposit plus interest within 45 days of move-out
• Provide itemized statement of any deductions within 30 days

Penalty: Violations can trigger 2x the deposit amount in damages plus attorney’s fees. Accidental or technical violations can still trigger the penalty.

Fair Notice Requirements (§ 5-12-130)

The RLTO’s Fair Notice provisions require significantly longer advance notice than Illinois state law:

Fair Notice is required for: terminations, non-renewals, rent increases, and any material change in lease terms. Use our Chicago 30/60/120-Day Termination Notice for proper notice delivery.

Habitability and Maintenance (§ 5-12-070, § 5-12-110)

Landlords must maintain premises in compliance with the Chicago Building Code. Tenants have multiple remedies for material failures:

• Rent withholding — proportional reduction for loss of use
• Repair and deduct — up to $500/month with notice and receipts
• Substitute housing costs — landlord pays reasonable alternative housing if unit uninhabitable
• Lease termination — for serious or uncured violations
• Damages and attorney’s fees — for landlord’s failure to comply

Heat Requirements (§ 5-12-110)

Chicago has strict heat requirements during heating season (September 15 – June 1):

• Minimum 68°F from 8:30 AM to 10:30 PM
• Minimum 66°F from 10:30 PM to 8:30 AM
• Applies to all rooms, including bathrooms

Insufficient heat is one of the most common tenant complaints and a frequent basis for habitability claims.

Prohibited Lease Provisions (§ 5-12-140)

The RLTO automatically voids certain common lease terms. Attempting to include these exposes landlords to damages:

• Confession of judgment clauses
• Waiver of jury trial
• Waiver of RLTO rights or statutory notices
• Hold-harmless clauses for landlord’s own negligence
• Automatic rent increases without proper Fair Notice
• Excessive late fees (see below)
• Attorney’s fees waivable only as a one-way provision

Late Fee Limits (§ 5-12-140)

Chicago caps late fees substantially below what Illinois state law allows:

• Maximum $10/month for rent amounts under $500
• Plus 5% of any amount over $500
• Late fees imposed before rent is 5+ days late are void
• Violating the cap creates tenant claims for statutory damages

Retaliation Prohibited (§ 5-12-150)

The RLTO creates a robust anti-retaliation framework. Prohibited retaliation includes:

• Termination or non-renewal following a tenant complaint
• Rent increases within 1 year of a protected activity
• Reduction in services
• Refusal to renew based on tenant’s RLTO-protected activity
• Filing a retaliatory eviction

A tenant claim of retaliation creates a rebuttable presumption that shifts the burden to the landlord to prove a legitimate, non-retaliatory reason for the adverse action.

Lockouts Prohibited (§ 5-12-160)

Self-help eviction is illegal in Chicago and comes with severe penalties:

• Changing locks or removing doors — prohibited
• Shutting off utilities — prohibited
• Removing tenant property — prohibited
• Civil penalties up to $500 per day plus damages and attorney’s fees
• Only way to remove tenant is through court order after formal eviction

Notice Before Entry (§ 5-12-050)

The RLTO requires landlords to provide reasonable advance notice before entering, except in emergencies. “Reasonable” is not defined by a specific number of hours, but 48 hours is the accepted standard. Entry must be:

• For a legitimate purpose (repairs, maintenance, showings, inspection)
• At reasonable times (typically business hours)
• With advance written notice except in true emergencies

Use our Chicago Notice of Entry form to document compliance.

Tenant Obligations (§ 5-12-040)

The RLTO also imposes specific tenant duties. Tenants must:

• Comply with all housing and building code provisions applicable to tenant conduct
• Keep the unit clean and safe
• Dispose of waste properly
• Use facilities reasonably (plumbing, electrical, appliances)
• Not deliberately damage the property
• Not disturb neighbors or other tenants
• Allow reasonable access for legitimate landlord purposes

What Happens if This Disclosure Isn’t Attached?

The consequences of failing to attach the RLTO Summary are significant:

• Certain lease provisions become void and unenforceable
• Tenant may terminate the lease upon proper written notice
• Tenant may recover damages and attorney’s fees
• In rent court, landlord may be unable to enforce certain lease terms
• Creates a presumption of landlord bad faith in disputes

Best Practices for Chicago Landlords

• Attach this summary at or before lease signing — not after the fact
• Get a signed acknowledgment — this form’s signature section proves delivery
• Update annually — interest rates and requirements change; use current versions
• Retain signed copies for the entire tenancy and for at least 3 years after move-out
• Deliver at renewals too — many landlords forget that renewals are new leases
• Pair with written lease — oral leases and missing disclosures compound