Property Management
What is 'late fee' policy under Illinois landlord-tenant law?
AIllinois law sets a maximum late fee of $25 per month for all residential rentals
BIllinois law does not cap late fees statewide, but Chicago's RLTO limits late fees to a reasonable amount; late fees must be specified in the lease✓ Correct
CLate fees are illegal in Illinois; landlords cannot charge them
DIDFPR sets the maximum late fee schedule for all Illinois residential properties
Explanation
Illinois does not have a statewide cap on late fees for residential rentals, but the fee must be specified in the lease to be enforceable. Chicago's RLTO limits late fees to a reasonable amount (typically defined as a percentage of monthly rent or a flat fee). Courts may refuse to enforce unreasonably large late fees. Late fees should be clearly defined in the lease agreement, including the grace period before the fee applies.
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