15.11 REGULATION OF THE RENTAL FINDING INDUSTRY

Rental-Finding Services
A rental-finding service is any business that finds, attempts to find, or offers to find for any person for consideration a unit of rental real estate for a lessee for a unit of rental real estate not owned or leased by the business.

Any person or business entity that operates a rental-finding service must obtain a real  estate license and comply with all provisions of the Illinois Real Estate License Act of 2000. General-circulation newspapers that advertise rental property and listing contracts between owners or lessors of real estate and registrants are exempt from this requirement.

Rental-finding services are required to enter into written contracts with the parties for whom their services are to be performed. The contract must clearly disclose:

• the term of the contract,
• the total amount to be paid for the services,
• the service’s policy regarding the refunding of fees paid in advance, and the conditions under which refunds may or may not be paid (printed in a larger typeface than the rest of the contract),
• the type of rental unit, geographic area, and price range the prospective tenant desires,
• a detailed statement of the services to be performed,
• a statement that the contract shall be void, and all fees paid in advance shall be refunded, if the information provided regarding possible rental units available is not current or accurate (that is, if a rental unit is listed that has not been available for more than two days), and
• a disclosure that information regarding possible rental units may be up to two days old.

With regard to any individual rental unit, a prospective tenant must be provided with:

• the name, address, and telephone number of the owner,
• a description of the unit, monthly rent, and security deposit required,
• a description of the utilities available and included in the rent,
• the occupancy date and lease term,
• a statement describing the source of the information,
• and any other information the prospective tenant may reasonably be expected to need.

A rental-finding service may not list or advertise any rental unit without the express written authority of the unit’s owner or agent.

Leasing Agents
The Illinois Real Estate License Act of 2000 (Section 5-5 through Section 5-10) provides for a limited-scope license for individuals who wish to engage solely in activities related to the leasing of residential real property. For instance, the following activities would appropriately fall under this limited license, if the licensee did not engage in any other real estate activities (such as marketing single-family homes):

• Leasing or renting residential real property
• Collecting rent for residential real property
• Attempting, offering, or negotiating to lease, rent, or collect rent for the use of residential real property

The Act establishes specific qualifications and educational requirements for leasing agents, including a written examination.

Referral Fees
The Illinois Real Estate License Act of 2000 (Section 5-20) allows landlords to pay a referral fee to tenants. A resident tenant of a unit who refers a prospective tenant for a unit in the same building or complex may be paid a referral fee if he:

• refers no more than three prospective lessees in any 12-month period,
• receives compensation of no more than $1,500 or the equivalent of one month’s rent, whichever is less, in any 12-month period, and
• limits his activities to referring prospective lessees to the owner (or the owner’s agent) and does not show units, discuss lease terms, or otherwise participate in the negotiation of a lease.