Chicago landlords are one City Council vote away from a new set of rental rules, and it is not yet clear which set. Mayor Brandon Johnson's Protecting Renters Ordinance (PRO) and the rival FAIR ordinance both cleared committees last week, and the full Council deferred both to its next scheduled meeting on September 29. Either one would create a citywide rental registry. They split on registration fees, move-in fees and which department enforces the rules.
What happened
PRO advanced out of the Committee on Housing and Real Estate on a 12-9 vote on September 16. FAIR, sponsored by Ald. Gilbert Villegas (36th), cleared the Zoning Committee a day later on a 12-6 vote. Both were set for a full Council vote this week, but Housing Committee chair Ald. Byron Sigcho-Lopez moved to defer, saying both needed more discussion. Chicago City Wire reports both are expected to come back on September 29. That is a scheduled meeting, not a guaranteed vote. Block Club noted a final vote may be delayed until later this fall, when budget season crowds the calendar.
The city describes PRO as a rewrite of the 40-year-old Residential Landlord and Tenant Ordinance (RLTO). The version that cleared committee is narrower than the June draft. It no longer requires "just cause" to decline a renewal, and it drops relocation payments for no-fault displacement and damages tied to unconscionable rent increases.
Here is how the two compare, based on committee reporting:
| PRO (mayor) | FAIR (Villegas) | |
|---|---|---|
| Rental registry | Yes, annual registration of all rental units, including fee-exempt owner-occupied buildings | Yes, an owner registry |
| Registration fee | $20 to $60 per unit a year, by building size | No registration fee |
| Move-in fees | Banned, along with move-out fees | Allowed if disclosed |
| Enforcement | New Bureau of Rental Housing Services in the Department of Housing | An office in the Department of Buildings, using existing staff at first |
| Eviction counsel | Makes the legal-assistance pilot permanent | Not included, per critics at the hearing |
| Small-building exemption | Some owner-occupied small buildings exempt from the fee, not from the rules | Exempts buildings of up to 12 units |
The Real Deal reported PRO's tiers as $20 per unit for one- to four-unit buildings, $40 for 5 to 49 units and $60 for buildings over 50 units. The same report said fee-exempt owners still have to register, and that staff expect penalties for persistent failure to register of $100 to $500 a day. The city projects the fees would raise about $22 million a year and says it would need 28 employees, including 12 new positions.
FAIR's move-in fee language, according to materials Villegas shared, allows fees "reasonably related to estimated costs" of a tenant moving in, such as security or trash removal.
Why it matters for property managers
The registry is coming either way. Both ordinances create one. The open questions are what you disclose, what you pay and who enforces it. As WBEZ reported in July, PRO asks for more ownership detail, including who is responsible for an LLC or trust that owns the property, while FAIR asks mainly for owner or agent contact information and a repair contact.
Move-in fees are the biggest line-item risk. Block Club reports move-in fees have become increasingly common in Chicago as an alternative to security deposits. If PRO passes, that revenue line goes away and your deposit process has to carry the load. The RLTO's deposit rules are detailed and penalties can be steep, so do not switch to deposits without reviewing them with counsel.
The registry fee is small next to the operating changes. At the $40-per-unit tier for 5- to 49-unit buildings, a 30-unit building would pay $1,200 a year under PRO. The larger cost is the compliance work: a tenant bill of rights, complaint investigations by a new bureau, and a registry record that ties your ownership to your code history.
The politics are not settled. Block Club notes PRO needs 26 votes to pass, while FAIR backers would need 34 to override a mayoral veto. Negotiations could still produce a compromise that looks like neither draft.
What to do this week
This is general information, not legal advice. Neither ordinance is law yet, and final text can change on the floor. Confirm specifics with Chicago counsel before you change leases or fees.
- Inventory every non-rent fee you charge in Chicago. List move-in, move-out, amenity, pet and admin fees by property, with annual revenue. That is the number at risk if PRO passes.
- Model the fee-to-deposit switch. For properties that use move-in fees instead of deposits, map what it would take to collect, hold and return deposits under the RLTO, including interest and receipt rules.
- Clean up ownership records. Gather the legal owner, managing agent, and repair contact for each building, including the people behind any LLC or trust. You will need this under either registry.
- Budget the registry fee. Price 2027 budgets at the PRO tiers as a conservative case, and note which buildings might qualify for an owner-occupied exemption.
- Pull open code violations. A registry that links ownership to compliance history makes old violations more visible. Close what you can now.
- Watch September 29. Check the Council agenda and the final text of whatever passes before you update lease templates.
What we're watching
- The September 29 meeting. Whether either ordinance gets a vote, or a compromise emerges, as the Council heads into budget season.
- A veto fight. If FAIR passes, the mayor could veto it.
- FAIR's funding. Tenant advocates told the Council FAIR's registry relies on foreclosure-registry fees they say were repealed years ago. How FAIR pays for enforcement is still an open question.
- Effective dates. Neither side has a final implementation timeline yet. Registration deadlines and fee billing dates will decide when this hits your budget.