Chicago RLTO Facts
Operate with confidence in Chicago. We help you run RLTO‑aware operations and coordinate with your attorney for legal interpretation.
Residential Landlord and Tennant Ordinance in Brief
The Residential Landlord and Tenant Ordinance (RLTO) covers the legal rights and responsibilities of both landlords and tenants. From the city’s website, the purpose of the ordinance is to promote the public health, safety, and welfare of its citizens.
The RLTO does a nice job of establishing minimum guidelines and standards to protect tenants, and rightfully punishes housing providers that do not adhere to these standards. However, it is a long ordinance laced with unintended consequences for simple, honest, mistakes such as miscalculating interest on a security deposit. Drexel Properties works with owners to ensure compliance with the RLTO, but ultimately investors should consult with a knowledgeable attorney familiar with the ordinance.
When the RLTO May Not Apply
Owner‑occupied buildings with six or fewer units
For example, if you buy a 3-unit property and live in one of the units, the RTLO does not apply to this building while you remain a live-in owner.
Non‑residential spaces
If you buy an 8-unit apartment building with a mix of six residential apartments and two storefronts, the two storefronts are not covered under the RTLO (the ordinance does apply to the six apartment buildings).
Employee housing where occupancy is tied to employment
If you have a unit rented out to your maintenance employee, and the lease is contingent on him working for you, the RTLO does not apply to this unit.
Third party contracted, student housing
Student housing where the housing agreement is entered into between the student and an institution of higher learning where the institution exercises control or supervision of the students.
Short‑stay lodging
Dwelling units in hotels, motels, inns, bed-and-breakfast establishments, rooming houses, and boarding houses, but only for the first 31 days of a tenant’s stay.
How We Can Help
- Lease templates and processes with RLTO compliance in mind
- Notice timing calendars and deposit/fee handling workflows
- Documentation practices and resident communications
Notice: This is not legal advice. We partner with your attorney to implement policy.
