Cal. Civ. Code § 3.5
Additional means to pay rent when electronic payment methods charge additional fees. If a landlord uses a third-party payment portal to collect rental payments from tenants and if a transaction fee or other charge is imposed through the portal on rental payments made by e-check or other means, then the landlord shall allow the tenant to make rental payments by delivering a paper check or cash to the landlord or the landlord's business office or by means that do not require the tenant to pay the transaction fee or other charge. This Section applies to leases or agreements executed after the effective date of this amendatory Act of the 103rd General Assembly
Operative Text
Additional means to pay rent when electronic payment methods charge additional fees. If a landlord uses a third-party payment portal to collect rental payments from tenants and if a transaction fee or other charge is imposed through the portal on rental payments made by e-check or other means, then the landlord shall allow the tenant to make rental payments by delivering a paper check or cash to the landlord or the landlord's business office or by means that do not require the tenant to pay the transaction fee or other charge. This Section applies to leases or agreements executed after the effective date of this amendatory Act of the 103rd General Assembly.
Under 765 Ill. Comp. Stat. 705 § 3.5, when a landlord routes rent collection through a third-party payment portal that charges tenants a transaction fee for e-checks or similar electronic methods, the landlord is required to offer at least one fee-free alternative. That alternative must be a method the tenant can use without incurring any such charge — for example, delivering a paper check or cash directly to the landlord or the landlord's business office. This rule applies to leases and rental agreements entered into after the effective date of the relevant amendment by the 103rd General Assembly.
Plain English — not legal advice.
Property owners and managers who rely on third-party portals for rent collection should review whether those portals pass transaction fees on to tenants, because 765 Ill. Comp. Stat. 705 § 3.5 requires a fee-free payment option to be available whenever such charges exist. Compliant operators typically accept paper checks or cash at a designated business office, or arrange another portal method that carries no cost to the tenant. This obligation attaches to any lease or rental agreement signed after the provision's effective date, so operators generally audit new leases to confirm a qualifying fee-free method is documented and accessible.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 765 Ill. Comp. Stat. 705 § 3.5, tenants whose leases were signed after the provision's effective date have the right to pay rent through a method that does not impose a transaction fee, even if the landlord primarily uses a third-party portal. If a landlord refuses to offer a fee-free option such as accepting a paper check or cash, a tenant may document the refusal and explore remedies through Illinois tenant-rights organizations or local legal aid offices. Tenants can also raise a landlord's failure to comply with § 3.5 as a potential defense or basis for a complaint in relevant legal or administrative proceedings.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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