Pass-Through Costs and Rent Increases for Illinois Renters

If you're renting in Illinois, you may wonder when and how your landlord is allowed to raise your rent due to increased expenses, sometimes called "pass-through costs." Understanding these rules can help you respond confidently if you receive a notice about higher rent. This guide explains renters' rights regarding pass-through costs, what Illinois law says, and the steps you can take.

What Are Pass-Through Costs?

Pass-through costs are extra expenses landlords face—often due to property taxes, insurance, or utility increases—which they sometimes attempt to "pass through" to tenants by raising rent. These increases are different from basic rent hikes and are sometimes separated on your bill or lease as extra charges.

Are Pass-Through Costs Legal in Illinois?

Currently, Illinois does not have statewide rent control or rent stabilization. That means, except in a few municipalities with their own rules, landlords generally have wide discretion to set rents. However, state law does require proper notice when increasing rent, whether for pass-through costs or a standard rent hike.

• There are no statutes in Illinois law that specifically address or limit "pass-through" charges for residential rentals outside Chicago or a small number of home rule municipalities.
• Landlords may only increase rent or pass through extra costs when your lease permits it or at lease renewal for fixed-term leases.
• Month-to-month tenants can generally see rent increases (including pass-through costs) with a written notice of at least 30 days.

To learn more, visit the official Illinois Security Deposit Return Act and Rental Property Laws page.

Special Rule: Chicago Residential Landlords and Tenants

Chicago has its own set of rules under the Chicago Residential Landlord and Tenant Ordinance (RLTO). Here’s how pass-through costs are typically handled:

• Any extra charge or rent increase must be allowed by your written lease.
• Landlords must provide at least 30 days’ written notice of any rent increase.
• Sharply increasing rent solely to "pass-through" costs outside the lease's terms may not be valid. If you believe your landlord violated this ordinance, you can bring your issue to the City of Chicago's Department of Housing.

Outside of Chicago, there are currently no official rent control programs or boards regulating pass-through costs for residential tenants.

When Can a Landlord Raise Rent Due to Pass-Through Costs?

In Illinois, landlords can only increase rent (for any reason, including pass-through costs) at certain times:

• If you are on a month-to-month rental: The landlord must give you at least 30 days’ written notice before the rent increase takes effect.
  See: Illinois Compiled Statutes – Rental Laws
• If you have a fixed-term lease (like 1 year): Rent can only be changed at the end of your lease term, unless your lease specifically allows for mid-term increases.
• For subsidized or public housing: Rules about rent increases may differ. Check directly with Illinois Department of Human Rights – Housing Division for more information.

Always review your lease and look for any sections about rent increases or pass-through costs to know your rights in advance.

Required Forms and How to Use Them

• Notice of Rent Increase (no official number): Landlords must give this written notice to increase rent or add pass-through charges for month-to-month renters.
  Practical use: If you get a notice saying rent will rise to cover higher property taxes, your landlord must provide this at least 30 days before the new rent starts.
  Download Sample Notice Form
• Complaint to City Department (Chicago only): If you believe a landlord illegally raised rent or added fees without proper notice, Chicago renters can file a complaint with the Department of Housing.
  Practical example: If your rent is increased mid-lease for "property improvement surcharges" without foundation in your lease, you can use the Chicago Department of Housing’s contact form.
  File a Complaint Online (Chicago)

There is no statewide tribunal or residential tenancy board in Illinois overseeing rent increases. Local Small Claims Court often handles landlord-tenant disputes; in Chicago, renters can also reach out to the City’s Department of Housing (Chicago Department of Housing – Renter Services).

What If I Dispute a Pass-Through Cost or Rent Increase?

If you believe a rent increase (including pass-through costs) is unfair, not in your lease, or not properly noticed, you can:

• Write to the landlord requesting clarification and the legal basis for the increase.
• Seek advice from your city’s tenant services or Department of Housing (especially in Chicago).
• File a formal complaint if you’re in Chicago or pursue Small Claims Court elsewhere in Illinois.

Summary

Illinois generally does not restrict how much landlords can raise rent or add pass-through costs, but proper notice is required. Review your lease and city rules (such as Chicago's RLTO) to determine your rights. If you get a notice about increased rent or fees, check the notice, look to your lease for terms, and know that official complaint options exist, especially in Chicago.

FAQs: Rent Increases and Pass-Through Costs

1. Can my landlord raise rent for utilities or property taxes in Illinois?
   Yes, but only after providing proper notice and if your lease allows it during the lease term. Outside of a lease, increases can occur at renewal for fixed leases or with 30 days’ notice for month-to-month tenancies.
2. What should a rental increase notice include?
   The notice should state the new rent, the effective date, and be given at least 30 days before the increase for month-to-month renters.
3. Is there a limit to how much my landlord can raise my rent in Illinois?
   There are no state limits on rent increases outside of certain municipalities like Chicago. However, unreasonable increases could be challenged in court if deemed retaliatory or discriminatory.
4. What can I do if I think an increase is illegal?
   You can write to your landlord, seek clarity, contact your city’s tenant service agency, or file a formal complaint (especially in Chicago).
5. Does Illinois have a rent control board?
   No. Illinois does not have a statewide rent control or stabilization board. In Chicago, the Department of Housing handles complaints under the city’s RLTO.

Conclusion: What Illinois Renters Should Remember

• Illinois law allows landlords to increase rent (including pass-through costs) with proper notice.
• Check your lease and city laws, especially if living in Chicago.
• If you receive a sudden increase, you have resources for help and possible complaint channels.

Understanding your rights can help you navigate any rent increase scenario with confidence.

Need Help? Resources for Renters

• Illinois Department of Human Rights – Housing
• Chicago Department of Housing – Renter Services (for Chicago residents)
• Illinois Compiled Statutes – Rental Laws
• Sample Rent Increase Notice (PDF)
• Chicago Renters: File a Complaint

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1. See Illinois Compiled Statutes – Rental Laws
2. See Chicago Residential Landlord and Tenant Ordinance

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