Navigating Change: Chicagoland Property Law Updates for 2026

As we settle into the first quarter of 2026, the real estate landscape in Illinois—and specifically within the Chicago metro area—is undergoing significant regulatory shifts. For property owners, landlords, and community associations, staying ahead of these changes isn’t just about best practices; it’s about avoiding costly litigation and ensuring compliance with new state mandates.

Here is a breakdown of the pivotal updates from Q1 2026 and what we anticipate for the second quarter of the year.

Q1 2026: Key Legislative Shifts Now in Effect

The start of the year brought several “Day 1” changes that impact daily operations for housing providers and property managers.

1. The Summary of Rights for Safer Homes Act

Effective January 1, 2026, all residential landlords in Illinois are now required to provide a state-issued “Summary of Rights” as the first page of every new or renewed lease.

• The Purpose: To inform tenants of their rights under the Safe Homes Act, including the right to terminate a lease early due to domestic or sexual violence and the right to request lock changes for safety.
• The Risk: Failure to include this as the first page (and obtaining a signature) can result in statutory damages of up to $2,000 or actual damages.

2. Prohibition on Naming Minors in Evictions

To prevent long-term damage to the credit and housing records of children, House Bill 3566 now prohibits landlords from naming minors as defendants in eviction proceedings.

Note: If a minor is mistakenly named, the entire case may be dismissed and sealed, forcing the landlord to refile and pay new fees.

3. “Squatter Bill” (SB 1563) Implementation

Law enforcement now has clarified authority to remove unauthorized occupants (trespassers) without a full civil eviction process—if the individual entered the property through criminal trespass. However, this does not apply to “holdover” tenants or anyone who ever had a legal right to be there.

4. Junk Fee Ban & Disclosure Rules

Landlords must now disclose all non-optional fees (such as move-in fees or administrative costs) in a “clear and conspicuous manner” in the property listing. Additionally, application fees are generally capped at $50 unless third-party costs are higher and documented within 14 days.

Q2 2026: What’s on the Horizon?

As we look toward the spring and summer markets, several developing stories will likely take center stage.

Property Tax Relief & Deferral

Expansion of the Senior Citizens Real Estate Tax Deferral Program is a major focus for Q2.

• The maximum household income for eligibility has increased to $75,000.
• Applications for the 2025 tax year (paid in 2026) are due by March 1, and we expect to see high participation as seniors look for relief against rising assessments.

Federal Ruling on Cook County Tax Sales

In early February 2026, a federal judge ruled the Cook County Tax Sale System unconstitutional. This is a landmark development. We expect Q2 to be dominated by the fallout of this ruling, potentially leading to a freeze or total overhaul of how delinquent property taxes are collected and sold to private investors in Chicagoland.

Chicago’s New Composting Mandate

Watch for increased enforcement of the Organic-Waste and Composting Ordinance. Chicago landlords and condo boards can no longer “unreasonably restrict” tenants from participating in composting programs. If your building’s rules still contain a blanket ban, Q2 is the time to update your bylaws to avoid fines ranging from $300 to $600 per offense.

Summary Table: Compliance Checklist for 2026