In the United States, every state defines its laws and regulations. Every state has its rent regulations formulated in accordance with subsets of apartments. The idea is to monitor affordable housing and keep people from going homeless and broke. Before the rental agreement commences, it's advisable to explore acquiring landlord insurance in Illinois to safeguard against potential damages.

However, Illinois has no rent stabilization or rent control laws. This enables landlords to set rent and increase it across the state, given that they provide proper notice.

On the other hand, the landlord can increase the rent with certain discretions, as much as they wish, and whenever they want. So, let's find out:

What do these terms mean?

What are the exceptions?

What are the limitations? 

These questions will help us understand the rights of both tenants and landlords in Illinois.

What is rent control?

Rent control, or rent regulation, usually refers to laws and ordinances limiting how much a landlord can increase rent in a given period and set conditions for when and how much they can raise rents. Such regulations are set to make housing affordable by imposing price controls. ‍There are generally two types of rent regulation:

• Eviction control
• Price control

Both require landlords to limit their rates for tenants based on factors such as salaries and inflation. Eviction controls specify criteria under which tenants cannot be evicted, whereas price controls define how landlords can increase rent. Controlling the eviction rates is often difficult due to constant changes in housing markets; therefore, wage-related regulations are more common.

Rent control is more common in cities where competition for limited housing stock raises market-rate prices out of reach for these residents.

According to the National Multifamily Housing Council’s website, rent control is not applicable in all United States. For example, some states have neither rent control nor premonitions, including the following:  Montana, Wyoming, Nebraska, Ohio, Maine, Hawaii, Delaware, Alaska, Virginia, West Virginia, and Pennsylvania.

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Recommended Reading: What Does Landlord Insurance Cover?

When Can a Landlord Raise Rent in Illinois?

In Illinois, landlords can raise the rent at any time, as long as they provide the tenant with proper notice. The amount of notice required and the amount of the rent increase can vary depending on the city and the type of rental agreement. In general, landlords must provide tenants with written notice of a rent increase, typically 30 days or 60 days before the increase takes effect.

It is important to check the local laws and regulations as some cities may have different rules regarding rent increase and notice.

How Much Can a Landlord Raise Rent in Illinois in 2024?

In Illinois, there is no state law that limits how much a landlord can increase rent. However, some cities in Illinois have rent control ordinances that limit the amount of rent increases. It's best to check with the local government in the city where the rental property is located to determine if there are any rent control laws in place that would limit the amount a landlord can increase rent.

A rent increase that is significantly higher than the market rate or that is unaffordable for the tenant, could be considered unreasonable. Additionally, landlords cannot raise rent in a discriminatory manner or in retaliation against tenants who have exercised their legal rights.

It's important to note that some cities in Illinois have implemented rent control laws, which might limit the amount of rent increases for certain properties. For example, Reno has a 5% plus inflation cap on rent increases for certain properties. So, it would be best to check with your local government to see if there are any rent control laws in effect in your area. The median Fair Market Rent in Illinois is $906 for a 2-bedroom home in 2023.

In short - The state of Illinois does not provide a limit to rent increases.  

How Can You Have Fixed Rent in Illinois?

In Illinois, you can have fixed rent in a rental agreement by including a provision in the lease that states the rent will not change during the term of the lease. For example, if the lease is for a period of one year, the rent would be fixed for that year and would not change until the lease expires and a new one is signed.

It is important to note that even if the lease includes a provision for fixed rent, landlords may still be able to raise the rent if the lease allows for rent increases or if the lease has a provision for automatic rent increases based on a certain percentage or consumer price index.

It's also worth noting that even if the lease has a fixed rent provision, landlords may still be able to increase rent if both parties agree to a new lease with different terms, including rent.

It's important to read and understand the lease agreement and any local laws that may apply before signing.

It's also worth noting that some cities in Illinois have rent control ordinances that limit the amount of rent increases for certain properties, regardless of what is stated in the lease agreement.  

When Can an Increase in Rent Become Illegal?

An increase in rent can become illegal if it is in violation of local, state or federal laws or if it is in violation of the lease agreement.

• In Illinois, if a landlord raises the rent in retaliation for the tenant exercising their legal rights, such as complaining about the condition of the rental unit, the increase may be considered illegal.
• Rent increases that discriminate against certain protected classes of people, such as those based on race, color, national origin, religion, sex, familial status, or disability, would be illegal under federal fair housing laws.
• Rent increase that is above the maximum limits of the local rent control ordinances, if any, would be illegal.
• If the lease agreement includes a provision for fixed rent, landlords would be in violation of the lease agreement if they raise the rent during the term of the lease without the tenant's consent.

It's important to consult with a lawyer or tenant rights organization if you believe the rent increase to be illegal, as they can advise you on your rights and options, and help you to take the appropriate actions.

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The legal rights include:

By making a complaint to any governmental agency regarding certain conditions in the building. Such as health inspectors, building inspectors, fire departments, or any other regulatory body for lousy living conditions.

By joining any tenant union. Suppose the landlord is uncomfortable with the tenant joining any union and retaliates against it. However, it is the legal right of the tenant to join any tenant union.

Use rent money to fix any defects in the rental unit. The tenant can use the rent money for these fixes when the landlord has failed to comply with the fixes, resulting in terrible living conditions, health hazards, or safety hazards.

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Recommended Reading: How Much Does Landlord Insurance Cost?

Is There a Certain Limit to Rent Increment?

Again, no! The landlord can increase the rent as much as they intend to. However, this can cause a loss of income in the future.

If tenants find the rent unreasonable, they are likely to move out when they find something within the budget. However, since the rent is high, conflicting with the space and location, there are chances to have new tenants any time soon.

When the old tenants leave, it's a loss of income for the landlord. That's because the property will stay vacant until someone comes along and agrees to the hiked rents.

The Rent Increase Notice

A majority of jurisdictions require landlords to send an official rent increase notice to raise the price of rental units. This notification must detail the new price, as well as when it takes effect. In Illinois, the amount of time that must be given depends on:

• The property type
• Lease type
• Rent increase

In Illinois, the amount of notice required for a rent increase depends on whether the tenant has a lease or a month-to-month rental agreement.

If the tenant has a lease, the landlord must give the tenant 30 days notice before the rent increase goes into effect. This means that if the lease is expiring and the landlord wants to increase the rent, they must give the tenant 30 days notice before the lease expires and the new rent amount takes effect.

If the tenant has a month-to-month rental agreement, the landlord must give the tenant 45 days notice before the rent increase goes into effect. This means that the landlord must give the tenant 45 days notice before the next rent due date, and the new rent amount will take effect on that date.

It's also important to note that if the tenant has a lease agreement, the rent cannot be increased during the term of the lease unless the lease specifically allows for it.

It's always a good idea for tenants to keep records of all rent increase notices and any other written communication with their landlord to ensure they are aware of the notice given and when the increase will take effect.

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Because local laws may differ, landlords should be aware of the county or city’s landlord-tenant regulations and the other state’s rules to comply.

Conclusion

While landlords have the liberty to increase rent to any amount they desire, doing so may lead to vacancies and loss of income if tenants find the price unreasonable and decide to move out. This suggests that while there is no legal limit to how much landlords can increase rent, practical considerations might limit such increases to maintain tenancy and income stability. Additionally, legal requirements, such as sending an official rent increase notice within specific time frames, are in place to regulate this process. For instance, in Illinois, the notice period depends on the type of lease agreement, with a 30-day notice required for tenants with a lease and a 45-day notice for those with a month-to-month rental agreement. This regulatory framework ensures tenants are given fair warning of rent increases, allowing them to make informed decisions about their housing situation.