An Illinois month-to-month lease agreement is a rental agreement between a landlord and a tenant that automatically renews at the end of each rental period until either party provides written notice to terminate. This type of agreement establishes a tenancy at will, providing landlords the desired flexibility without the commitment of a long-term residential lease.
Even with its flexible structure, a month-to-month lease in Illinois must still comply with state landlord-tenant laws. Below, we’ll outline the key laws Illinois landlords should understand before using a month-to-month rental agreement.
Disclosures (8)
Illinois landlords must provide certain disclosures when renting residential property. These disclosures protect tenants and limit landlord liability under an Illinois month-to-month lease agreement.
- Lead-based paint: Federal law requires Illinois landlords to disclose any known lead-based paint hazards for rentals built before 1978 and provide the EPA-approved pamphlet.
- Smoke detectors: Landlords must inform tenants about all smoke detectors, including testing and maintenance (425 Ill. Comp. Stat. 60/3(d)).
- Carbon monoxide detectors: Landlords must also inform tenants about carbon monoxide detectors in their units, including the status and maintenance (430 Ill. Comp. Stat. 135/10(c)).
- Rent concession: The Rent Concession Act, designed to protect tenants, requires landlords to clearly outline the amount, extent, and nature of any rent concessions granted to the tenant (765 Ill. Comp. Stat. 730/3).
- Shared utilities: If any tenants share utilities, landlords must notify tenants and share how utility payments are divided (765 Ill. Comp. Stat. 740/5(a)).
- Radon hazards: State law requires landlords to disclose the existence of radon or radon hazards in all units located above ground level and below the third story (420 Ill. Comp. Stat. 46/25).
- Residential landlord-tenant ordinance summary: Cook County and the City of Chicago require landlords to attach a summary of the Residential Landlord and Tenant Ordinance to their Illinois month-to-month lease agreement.
- Bed bug brochure: Additionally, Cook County and the City of Chicago require landlords to give tenants an informational bed bug brochure from the Department of Health.
Optional Disclosures and Addenda
These optional disclosures, while not required by federal or state law, can help clarify tenant expectations and reduce future disputes.
Asbestos: Gives information about known asbestos hazards in the unit and ways to avoid or limit exposure.
Landlord contact information: Lists the landlord’s or property manager’s name and contact details.
Late/returned check fee: Discloses the fees associated with late rent or returned checks. In Illinois, the late fee limit is $20 or 20% of the monthly rent, whichever is greater. Returned check fees are capped at $30 or the total cost of collection, whichever is greater.
Medical marijuana use: Outlines the rules for the use of medical marijuana on the property, as some states allow landlords to limit or restrict its use.
Mold disclosure: Details any known or suspected mold issues in the unit, along with tips for remediation.
Move-in checklist: Documents the condition of the unit at the tenant’s move-in, to calculate accurate security deposit deductions at the end of the tenancy.
Non-refundable fees: Lists any fees that will not be refunded or return at move-out.
Smoking: Details the smoking policy for the rental, including any designated smoking areas.
Additional Illinois Month-to-Month Lease Laws
Illinois month-to-month lease agreements must comply with all applicable state laws regarding notice requirements, rent increases, evictions, and more. These rules help landlords maintain compliance and consistency during the tenancy.
Notice to Terminate a Month-to-Month Agreement
Ending an Illinois month-to-month lease requires proper written notice. Illinois uses a straightforward statewide rule for both landlords and tenants.
Required notice for tenant: Tenants must give landlords at least 30 days’ written notice before terminating an Illinois month-to-month lease agreement (735 Ill. Comp. Stat. 5/9-207).
Required notice for the landlord: Landlords must also provide tenants with 30 days’ written notice when ending a month-to-month tenancy (735 Ill. Comp. Stat. 5/9-207).
Landlords must give this notice at least 30 days before the end of the rental period and must terminate the lease on the last day of a monthly term.
Laws Governing Rent Increases
Illinois does not have statewide rent control or rent stabilization. Landlords may increase rent as needed but must give tenants at least 30 days’ written notice before the increase takes effect (735 Ill. Comp. Stat. 5/9-207).
Local laws may differ. For example, Chicago’s Residential Landlord and Tenant Ordinance (RLTO) requires additional disclosures and protections but does not impose rent control. Always follow local rules in municipalities with their own rental ordinances.
Lease Violations and Eviction
Illinois outlines specific procedures that landlords must follow when responding to lease violations or unpaid rent.
Missed rent payment: If rent is overdue (2 days for Cook County and the City of Chicago; 5 days for the rest of the state), landlords may issue a 5-day Notice to Pay or Quit. If the tenant fails to pay within this period, the landlord may file for eviction (735 Ill. Comp. Stat. 5/9-209).
Lease violation: For lease violations other than unpaid rent, landlords must provide a 10-day Notice to Quit, allowing the tenant to vacate before the landlord initiates the eviction process (735 Ill. Comp. Stat. 5/9-210).
Lease abandonment: If a tenant leaves the rental early without notice, they may still owe rent for the remainder of the rental period. Illinois requires landlords to make reasonable efforts to re-rent the unit, reducing the tenant’s financial liability (735 Ill. Comp. Stat. 5/9-213.1).
Self-help evictions: Lockouts, shutting off utilities, or removing a tenant’s belongings, otherwise known as self-help evictions, are prohibited in Illinois. State law requires landlords to use the court eviction process in all cases.
Rent Payment Laws
Rent payment laws in Illinois are relatively flexible. The state does not impose a limit on late fees or require a grace period. Any fees must be reasonable and documented in the lease.
Rent control/stabilization: There is no rent control or stabilization at the state level in Illinois.
Late rent fees: Illinois law allows a maximum late fee of $20 or 20% of the monthly rent amount, whichever is greater (770 Ill. Comp. Stat. 95/7.10(b)). Cook County allows a late fee of $10 per month for rent under $1,000, or 5% of any rent over $ 1,000, while the City of Chicago allows a late fee of $10 per month for rent under $500, plus 5% of any rent over $500.00.
Grace period: Illinois requires landlords to give tenants a 5-day grace period for late rent (770 Ill. Comp. Stat. 95/7.10(a)). However, Chicago and Cook County only require a 2-day grace period.
Tenant’s right to withhold rent: If a landlord does not make a necessary repair, or if the repair total is less than $500, tenants are allowed to withhold rent. They may send a written notice to their landlord about the repair and, if the landlord does not make the repairs within 14 days, the tenant can complete the repair, submit the invoice to their landlord, and deduct that amount from their rent (765 Ill. Comp. Stat. 742/5).
Pet rent laws: Illinois landlords may charge a pet deposit or monthly pet rent, provided the amount is reasonable and clearly outlined in the lease agreement template.
Security Deposits
Security deposit rules in Illinois depend on whether the property is subject to statewide law or a local ordinance. State law applies to landlords who own five or more rental units in Illinois.
Maximum amount: Illinois does not set a statewide limit on security deposits, but local regulations may apply. For instance, Cook County states that landlords may collect up to 1.5 times the monthly rent as a security deposit.
Deposit receipt: There is no statewide law requiring landlords to provide tenants with a receipt for their security deposit; however, the City of Chicago and Cook County require a dated receipt for deposit funds (Residential Landlord and Tenant Ordinance).
Interest payments: If a rental property has more than 25 units, the landlord must pay interest on their tenants’ security deposits by keeping them in interest-bearing accounts. The interest rate should be equal to the interest paid by the largest Illinois bank (765 Ill. Comp. Stat. 715/1).
Security deposit return: Landlords have 30 days after the lease termination to return the security deposit to the tenant. If they withhold any deductions, they must send an itemized list to the tenant within 30 days and the remainder of the deposit within 15 days after that (765 Ill. Comp. Stat. 710/1(a)).
Deductions: Landlords may deduct for unpaid rent or damages beyond normal wear and tear. Failure to follow deposit laws may result in the landlord owing double damages (765 Ill. Comp. Stat. 710/1(a)).
Property Access Laws
Landlords usually have to enter the property at some point or another during the tenancy. Illinois does not establish a specific statewide notice requirement for landlord entry, so it’s essential to lean on best practices when accessing the unit.
Advance notice: No state-wide advance notice is required, but most agree that 24-48 hours’ notice is reasonable. However, Cook County requires landlords to provide tenants with 2 days’ notice and may enter only between 8:00 am and 8:00 pm, unless there is an emergency (MUN. CODE CH. 5-12-050).
Immediate access: In the case of an emergency, landlords have immediate access to the property.
Harassment: Landlords who repeatedly enter the unit without just cause may be charged with landlord harassment. In Cook County, landlord harassment may allow a tenant to terminate their lease early and recover up to 1 month’s rent (MUN. CODE CH. 5-12-050).
