Evanston enacts new landlord-tenant ordinance clarifying security deposits and maintenance duties

The City Council of Evanston, Illinois, held a webinar on March 6, 2025, to discuss updates to the Landlord-Tenant Ordinance. The meeting focused on several key changes aimed at clarifying responsibilities and rights for both landlords and tenants.

The first significant update pertains to security deposits. Previously, landlords were required to pay interest on security deposits held in bank accounts. This requirement has been removed, as the interest accrued was often minimal and deemed not worth the administrative burden. Additionally, landlords must now clearly label any fees that could be construed as security deposits, ensuring they adhere to the same regulations.

Landlords are also now required to provide more comprehensive disclosures to tenants at the start of a tenancy. This includes information about utility responsibilities, any building code violations from the past year, and potential lead hazards. Tenants must be informed if there are threats to utility services and if a foreclosure is pending on the property.

The ordinance also clarifies landlords' obligations to maintain rental units. They must ensure compliance with building codes and cannot transfer maintenance responsibilities to tenants without a separate written agreement. Furthermore, landlords are now required to address criminal activity that disrupts other tenants' enjoyment of the property.

Another notable change is the adjustment to the "repair and deduct" rule. Tenants can now deduct up to $500 or half of their rent for necessary repairs if the landlord fails to act within ten days of receiving written notice of the issue. This is an increase from the previous limit of $200.

The ordinance also addresses the process for withholding rent. Tenants can withhold rent if a code violation has been cited by the city and the landlord has not made repairs within ten days of notification. However, this withholding is contingent on the violation being officially recognized.

Regarding landlord access to rental units, the ordinance maintains that landlords must provide two days' notice before entering, except in emergencies. New provisions clarify that landlords can show units to prospective tenants within 90 days of a lease ending, provided they do so at reasonable hours.

Finally, the ordinance outlines the procedures for eviction. Landlords must now deliver termination notices in specific ways, including personal delivery or certified mail. A significant change is that all tenants, regardless of property type, are entitled to a ten-day notice before eviction proceedings can begin. Additionally, tenants can pay overdue rent plus legal costs once per tenancy after a notice has expired, compelling landlords to accept the payment and dismiss any eviction proceedings.

Overall, the updates to the Evanston Landlord-Tenant Ordinance aim to enhance transparency and fairness in rental agreements, ensuring both parties are aware of their rights and responsibilities. The City Council plans to continue monitoring the ordinance's implementation and effectiveness in the coming months.