Understanding Tenant Rights: Maximum Late Fee in Chicago
If you're a renter in Chicago, it's important to know your rights and responsibilities under the city's Residential Landlord and Tenant Ordinance (RLTO). One provision of the RLTO that affects many renters is the maximum late fee provision.
Under the RLTO, landlords can charge a late fee if a tenant fails to pay rent on time. However, the maximum late fee that can be charged is capped at a certain amount. Currently, the maximum late fee that landlords can charge in Chicago is $10 per month for the first $500 of rent, and 5% of the rent for any amount over $500.
Example #1:
Rent = $1,000 per month.
The maximum late fee a landlord can charge is up to $10 for the first $500 of rent and an additional $25 (5% of the remaining $500) for the remaining amount, for a total late fee of $35.
Example #2:
Rent = $500 per month.
The maximum late fee a landlord can charge is up to $10 for the first $500 of rent and an additional $0 (5% of the remaining $0) for the remaining amount, for a total late fee of $10.
TENANTS IN SUBSIDIZED HOUSING: If a tenant pays reduced rent, the late fee is calculated based off the tenant's contribution. So, if the tenant pays $300 of the $1000 rent, then the maximum late fee allowed is $10.
If the landlord violates the law, then the penalty is based off the full amount of rent - not just the tenant's portion.
What happens if a landlord charges a late fee that exceeds the maximum allowed under the Chicago RLTO?
If the landlord violates this law, the tenant may be able to take legal action to recover the excess amount. Additionally, if a landlord violates any provisions of the RLTO, including the maximum late fee provision, a tenant may be able to seek damages or other remedies in court.
If you have questions or concerns about your landlord's actions or your rights as a tenant, you may want to consult with a legal professional who specializes in landlord-tenant law.
The above article provides information about legal issues but is not the same as legal advice. Legal advice is when a lawyer applies the law to your specific situation. The information in this article does not replace the advice or representation of a licensed attorney. Law Center for Better Housing cannot guarantee the accuracy or completeness of the information in this article and is not responsible for any consequences that may result from using it. You should consult with a licensed attorney to ensure the information in this article is appropriate for your specific situation. Using the information in this article does not create a relationship between Law Center for Better Housing and you as your attorney.