Illinois Residential Lease Agreement

Last Updated: November 13, 2023 by Roberto Valenzuela

An Illinois residential lease agreement (“rental agreement”) is a legal contract between a landlord overseeing a residential property and a tenant who wishes to rent it. A residential lease may, on or before move-in, additionally require a security deposit from the tenant as assurance against future property damage.

Illinois Residential Lease Agreement Disclosures

These disclosures are required for all residential lease agreements in Illinois:

Disclosure Applicable To
Radon All Units with Radon Hazard
Carbon Monoxide All Units
Smoke Detector All Units
Shared Utility Meters All Units with Shared Utility Meters
Concession Granted All Units with a Granted Concession
Lead Paint All Units Built Before 1978

Radon Hazard Disclosure

Applicable to any Illinois rental unit located below the third floor, with known dangerous radon levels.

Illinois does not require periodic radon testing to rent a property, but any known radon hazard must be disclosed to tenants in the rental agreement. A radon hazard disclosure is not required if testing reveals safe radon levels, or if a radon hazard has been successfully treated.

This is an example of radon hazard disclosure:

RADON HAZARD. This property was found to contain potentially hazardous levels of radon gas that may pose a health threat to occupants. Additional information about the health risks posed by radon gas can be found on the Illinois Department of Public Health or the Environmental Protection Agency website(s).

Download: Illinois Radon Hazard Disclosure Form (PDF)

Carbon Monoxide Detector Disclosure

Applicable to all Illinois rentals.

Illinois landlords must comply with the Carbon Monoxide Detector Act by providing tenants with information about a property’s carbon monoxide detector testing and maintenance history.

Smoke Detector Disclosure

Applicable to all Illinois rentals.

Illinois landlords must comply with the Smoke Detector Act by providing tenants with information about a property’s smoke detector testing and maintenance.  Tenants have an obligation to do day-to-day maintenance on a smoke detector themselves (like battery replacement) and must inform the landlord in writing if there’s an issue that may require replacement.

Shared Utility Arrangements Disclosure

Applicable to any Illinois rental with a shared utility meter between tenants or common areas.

Illinois requires a special disclosure under the Tenant Utility Payment Disclosure Act when a property has a submetering system or otherwise doesn’t bill individually for utilities. The disclosure must be in the lease and include the following

  • All buildings, units, or common areas that share the tenant’s utility metering
  • A breakdown of the system for apportioning utility charges to tenants
  • Copies of the individual unit’s utility bill for the past 12 months
  • Any available rent reductions offered which compensate for shared utility usage

The total amount charged to shared units may not exceed the total utility charges for the entire building, and the landlord must also, upon request, provide a copy of the utility bill for any payment made by the tenant.

This is an example of a shared utilities clause:

SHARED UTILITIES. This dwelling unit shares a utility meter with the following parties:
[ ] Common Area(s):________________
[ ] Unit(s):__________________
[ ] Other:____________________

This lease uses the following method for calculating utility charges between Tenant(s):
[ ] Home Square Footage
[ ] Number of Tenants
[ ] Even Split Between Tenants
[ ] Other:_______________________________

A rent reduction of $______ will be enforced in accordance with this shared utility arrangement. Copies of utility bills for the rental unit for the past 12 months are available upon request.

Download: Illinois Shared Utility Arrangement Disclosure Form (PDF)

Concession Granted

Applicable to any Illinois rental unit which grants a concession for rent.

Illinois landlords must, in writing, disclose any concession for rent that they grant. The phrase “Concession Granted” must be written on the lease in type that is at least one-half inch in height, together with a statement detailing the value and terms of the concession. Illinois law defines a rent concession as:

  • Any rent credit, or rebate after payment, agreed between the parties to a lease
  • Any agreement for the tenant to occupy the rental property rent free or for a rent less than the average rent, during a period other than the term created by the lease
  • Any other valuable thing, right or privilege which places the stated rent out of step with the monies actually collected

Property maintenance and improvements are not a rent concession, nor is a waiver of lease terms other than ones which relate to rent payment. A landlord who does not disclose a rent concession in writing may be prosecuted for a Class A misdemeanor.

Lead-Based Paint Disclosure

Applicable to all rental property built before 1978.

For any property built before 1978, federal law requires that an Illinois residential lease must contain a lead-based paint disclosure. This requires landlords to do the following:

Download: Illinois Lead-Based Paint Disclosure Form (PDF)

Optional Disclosures and Addenda (Recommended)

The following lease agreement disclosures and addenda are not required by Illinois law in residential lease agreements, but assist with tenant management and help limit landlord liability.

Optional Disclosure Purpose
Asbestos Informs tenants about any asbestos hazards related to the property. Tenants can take precautions to reduce asbestos hazards by avoiding any disturbance of asbestos fibers.
Bed Bugs Informs tenants whether the property or an adjacent unit has a history of suspected bed bug infestation, and reminds the tenant of the obligation to report suspected infestation immediately.
Landlord’s Name and Address Specifies the name and address of the landlord or authorized agent. This enables smooth communication of any important legal notice.
Late/Returned Check Fees Specifies late fees or returned check fees related to the lease. In Illinois there are no restrictions on late fees and a $30 cap on returned check fees.
Medical Marijuana Use Informs tenants about policy related to medical marijuana use on the rental property. Some state laws allow landlords to restrict marijuana usage to non-smoking methods only, or allow use only in designated smoking areas.
Mold Disclosure Informs tenants about actual or suspected mold contamination on the property, along with any remediation efforts, to help limit landlord liability.
Move-In Checklist Provides an inventory of existing property damage, when the tenant takes possession of the rental property. This enables accurate deductions from the security deposit upon move-out.
Non-Refundable Fees Charges not agreed by the tenant in the lease may be refundable upon lease termination. For Illinois landlords to charge a non-refundable fee, it must be disclosed and agreed as such in the lease.
Smoking Informs tenants of designated smoking areas that do not interfere with the quiet enjoyment of other tenants.

note
Some Illinois cities have more comprehensive rules than the statewide standard. Chicago, for example, requires that landlords provide tenants with a summary of local housing laws. Always check local codes and regulations.

Consequences of Not Including Mandatory Disclosures

Mandatory disclosures outline important health, safety, and property information for both landlord and tenant safety. A landlord who fails to provide federally or state-mandated disclosures could face legal consequences or monetary penalties, either from a tenant lawsuit or from state officials.

An Illinois landlord who does not disclose a rent concession may be guilty of a Class A misdemeanor.

Failure to comply with the federal lead-based paint hazard disclosure risks fines of tens of thousands of dollars per violation.

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