The new Illinois law allowing renters to pay rent with cash or cheques will result in significant changes for property owners. House Bill 4206 was authorized on August 30th and goes into effect on January 1, 2025. This legislation, presented by State Senator Rachel Ventura, seeks to make rent payments more flexible for tenants.
The law requires property owners to be more flexible with payment methods in order to avoid excessive charges for transaction fees. On August 31, the Illinois legislature enacted a new law that will reduce rental payment surcharges. On July 21, a report emphasized the prices of renting an apartment in Chicago, advising homeowners to plan their budgets accordingly.
Protecting Tenant Rights
This law is intended to safeguard tenants from being evicted if they refuse to pay rent in any form other than cash or checks. “The new regulation ensures that tenants cannot be evicted if the landlord refuses to accept cash or check payments,” Senator Ventura stated in an email to Telemundo Chicago.
However, it is crucial to emphasize that this new regulation does not give tenants a reason to pay rent late or avoid late fees. 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 pay with credit cards are still responsible for any additional costs levied by banks on such transactions:
Key Points to Remember
- Landlords must take cash, and cheques, or use a third-party payment system.
- Tenants are protected from eviction if landlords refuse to accept cash or checks.
- The law does not exempt tenants from paying their rent on time.
- Landlords can still apply late payment fees.
- Bank-imposed credit card transaction costs will remain the tenant’s obligation.
This new regulation seeks to strike a balance between protecting tenants’ rights and ensuring landlords receive their rent payments on schedule.