With the new law in Illinois allowing tenants to pay rent with cash or checks, there will also be significant changes for property owners. House Bill 4206 was approved on August 30th and will come into effect on January 1, 2025. This law, introduced by State Senator Rachel Ventura, aims to make rent payments more flexible for tenants.
The law mandates that property owners must be more flexible regarding payment methods to avoid additional charges due to transaction fees. On August 31, the new law that will ease payment surcharges for rental payments in Illinois was approved. On July 21, a report highlighted the costs associated with renting an apartment in Chicago, urging residents to prepare their budgets accordingly.
Protecting Tenants’ Rights
This law is designed to protect tenants from being evicted if they refuse to pay rent using methods other than cash or checks. “The new regulation ensures that tenants cannot be evicted if the landlord refuses to accept cash or check payments,” explained Senator Ventura in an email to Telemundo Chicago.
However, it is important to note that this new law does not provide tenants with an excuse to pay rent late or avoid late fees. As Senator Ventura clarified, “This law does not affect landlords’ ability to charge a late fee, but it does require them to accept cash or checks from tenants for rent payments.”
Credit Card Payments
Tenants who choose to pay with credit cards will still be responsible for any additional fees imposed by banks for such transactions.
Key Points to Remember
- Landlords must accept cash and checks or use a third-party payment portal.
- Tenants are protected from eviction if landlords refuse cash or check payments.
- The law does not exempt tenants from paying rent on time.
- Late payment fees can still be applied by landlords.
- Credit card transaction fees imposed by banks remain the tenant’s responsibility.
This new legislation aims to strike a balance between protecting tenants’ rights and ensuring landlords receive rent payments on time.