An Illinois lease agreement is more than just a formality; it’s the foundation of your rental. Whether you are leasing a walk-up in Chicago or a Champaign duplex, a strong lease helps keep you and your investment protected.
Disclosures (8)
Illinois law requires certain disclosures to help keep both tenants and landlords safe. These are more than just paperwork; they help build trust and set expectations from the start.
Note: The only federally required landlord disclosure requires the disclosure of known information on lead-based paint and lead-based paint hazards before the sale or lease of most housing built before 1978. The Illinois legislature will decide the rest of the required disclosures below.
- Lead paint: Federal law requires landlords to disclose any known information about the property regarding lead paint and lead-based paint hazards in any home built before 1978.
- Smoke detectors: Information on smoke detector testing and maintenance must be disclosed (425 ILCS § 60/3(d)).
- Carbon monoxide detectors: Landlords must also inform tenants about the status and maintenance of carbon monoxide detectors in the rental (430 ILCS § 135/10(c)).
- Rent concession: The Rent Concession Act requires that landlords disclose any rent concessions granted to the tenant (765 ILCS § 730/3).
- Shared utilities: If any tenants share utility meters, the landlord must disclose how the utilities will be split (765 ILCS § 740/5(a)).
- Radon hazards: Landlords must disclose any radon hazards or the detection of radon for any unit located above ground level and below the third story (420 ILCS § 46/25).
- Residential Landlord Tenant Ordinance summary: The City of Chicago and Cook County require landlords to attach a summary of the Residential Landlord Tenant Ordinance to each lease.
- Bed bug brochure: Landlords in the City of Chicago and Cook County are required to provide a bed bug brochure prepared by the Department of Health with the lease.
Optional Disclosures and Addenda
While not required by law, these optional disclosures help with tenant management and can minimize landlord liability.
Asbestos: Inform tenants of any asbestos-related hazards that may be on the property.
Landlord contact information: Gives the name, address, and phone number of the landlord or their authorized agent.
Late/returned check fees: Outlines fees related to late rent or returned checks. In Illinois, there is no cap on late fees. However, returned check fees have a cap of $30 or all costs incurred from collection, whichever is greater.
Medical marijuana use: Explains the policies for medical marijuana use on the property.
Mold disclosure: Informs tenants of any suspected mold contamination and information on treatment.
Move-in checklist: Inventories the current condition of the unit for comparison at lease termination to determine any deductions or damages.
Non-refundable fees: An Illinois lease agreement must clearly outline any non-refundable fees; otherwise, they may be refundable at the end of the lease.
Smoking: Outlines the smoking policy in the rental, including where smoking is permitted.
Consequences of Not Including Mandatory Disclosures
Mandatory disclosures are more than just red tape; they provide essential information that helps protect the health, safety, and welfare of all parties involved. A landlord who fails to disclose these mandatory disclosures faces potential legal ramifications and/or financial penalties.
Security Deposit Regulations in Illinois
Security deposits are a key safeguard in your Illinois lease agreement, but there are specific rules surrounding them.
Maximum amount: There is no state-wide maximum on what landlords can charge for a security deposit; however, there are some counties and cities that do have a maximum. Always consult and follow local laws.
Deposit receipt: Although not required state-wide, the City of Chicago and Cook County require landlords to provide a receipt for the amount of deposit and date received (Residential Landlord and Tenant Ordinance).
Interest payments: If the property consists of more than 25 units, landlords must pay interest on security deposit funds by holding them in interest-bearing accounts (765 ILCS § 715/1).
Security deposit return: Landlords must return the security deposit within 30 days of lease termination. If the landlord makes 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 ILCS § 710/1(a)).
Deductions: Landlords should itemize any deductions with estimated or actual costs and the list provided to the tenant within 30 days (765 ILCS § 710/1(a)).
Rent Payment Regulations
Illinois rent payment laws cover everything from grace periods to rent control. Staying compliant helps you collect rent smoothly and avoid any disputes.
Do rent control/stabilization: Illinois passed a law in 1997 that prevents rent control in the state (Rent Control Preemption Act).
Late rent fees: In Illinois, the maximum late fee is $20 or 20 percent of the rent amount, whichever is greater (770 ILCS 95/7.10(b)). However, other cities and counties may have different regulations, so always follow local guidelines.
Grace period: The state of Illinois allows for a 5-day grace period (770 ILCS 95/7.10(a)). The City of Chicago and Cook County, however, have a 2-day grace period.
Tenant’s right to withhold rent: If a landlord fails to make a necessary repair or if the repair costs less than $500, tenants may withhold rent. Tenants may send a written notice to their landlord and, if they do not make the repairs within 14 days, the tenant can repair, submit the invoice, and deduct that amount from rent (765 ILCS § 742/5).
Violations
Even the best tenants can make mistakes occasionally. When mistakes happen, knowing the laws surrounding rental agreement violations can help everyone get back on their feet quickly.
Lease violation: If there is a lease violation, the landlord must give a 10-day written notice to quit. In some instances, Illinois landlords must allow tenants to correct the violation (735 ILCS § 5/9-210).
Missed rent payment: If the rent is still late after the required grace period, landlords may send a written 5-day notice to pay or quit (735 ILCS § 5/9-209).
Lease abandonment: Tenants who abandon a lease early are often responsible for the remaining rent on the lease as well as additional penalties.
Self-help evictions: Self-help evictions are illegal in Illinois and should not be attempted (765 ILCS § 735).
Terminating a Lease
Terminating a lease isn’t always easy. Fortunately, Illinois provides clear guidelines to follow, making it easy to stay in compliance.
Standard lease: Tenants may terminate their lease early without penalty in certain conditions, such as active duty military service, abuse, uninhabitable conditions, or landlord harassment (765 ILCS § 705).
Month-to-month: At least 30 days’ written notice must be given to terminate a month-to-month lease (735 ILCS § 5/9-207).
Property abandonment: Illinois does not have any state-wide regulations regarding abandoned property. The City of Chicago, however, requires that landlords store the property on-site for at least 7 days after the tenant leaves (MUN. CODE CH. 5-12-130 (g)).
Renewing a Lease
Lease renewals are an opportunity to retain great tenants and minimize turnover, but you must execute them correctly. When done the right way and with the right timing, renewing an Illinois lease agreement can be a win for both tenant and landlord.
Notice requirements: Illinois landlords are required to inform tenants when they do not intend to renew their lease. They must give 30 days’ written notice for a month-to-month lease. In a fixed-term lease, landlords must provide 50 days’ written notice (735 ILCS § 5/9-205).
Renewals: Landlords are not required to renew an Illinois lease agreement at the end of its term.
Landlord’s Access to Property
If you need to access your property, Illinois has clear laws about how and when you can enter, while still respecting your tenant’s rights to privacy.
Immediate access: In the event of an emergency, landlords are allowed to enter the property without notice, with or without the tenant present.
Notice requirements: There are no specific state regulations that outline when or how a landlord can enter a property. However, best practice is to give 24-48 hours’ notice, unless there is an emergency. In Cook County, however, landlords must provide 2 days’ notice and enter between 8:00 am and 8:00 pm (MUN. CODE CH. 5-12-050).
Harassment: When a landlord continually enters a property without just cause or notice, it can be considered harassment. In these cases, tenants may be able to terminate their lease early without penalty or even recover up to 1 month’s rent (MUN. CODE CH. 5-12-050).