Room Rental Agreement in Illinois
A complete, compliant Illinois room rental agreement (or “roommate agreement”) can help you keep both landlords and tenants accountable. Just like an Illinois lease agreement, a room rental agreement protects your investment, prevents disputes, and sets clear expectations.
Learn more about using a room rental agreement in Illinois with our helpful guide on rental laws, disclosures, and the benefits of leveraging property management software to create contracts.
Room Rental Laws
Landlord-tenant laws in Illinois apply to all leases, whether they’re for an entire home or a single room. Landlords must follow these regulations:
- Always maintain safe, habitable housing.
- Notify tenants before entering their room.
- Make all mandatory disclosures.
- Avoid landlord harassment.
We’ll review Illinois rental laws and disclosures in detail, but first, here’s a brief overview of contract types.
Different Types of Room Rental Agreements in Illinois
These are the three different ways you can establish your room rental agreement:
- Verbal agreement: Many landlords opt for informal word-of-mouth agreements, but we don’t recommend relying on them. It’s best to create a clear written lease instead.
- Fixed-term lease: These written contracts specify the tenancy’s start and end dates, offering greater stability and clarity.
- Month-to-month lease: “Tenancy at will” leases are the most flexible. They automatically renew each month, and both parties can terminate at any time with proper notice.
The ideal lease agreement depends on your specific circumstances. Consider your relationship to the tenant, the agreement’s length, and whether you want stability or flexibility.
Required Landlord Disclosures
State law requires you to add the following mandatory disclosures to your room rental agreement:
- Lead paint: Inform tenants about lead-based paint or related hazards in properties built before 1978 (42 U.S.C. § 4852d).
- Radon: Landlords must inform tenants about radon hazards they detect in the building between the above-ground level and the third story (420 Ill. Comp. Stat. 46/25).
- Smoke detectors: State law requires landlords to tell tenants about smoke detector maintenance or testing (425 Ill. Comp. Stat. 60/3).
- Carbon monoxide detectors: You must also inform tenants about testing and maintenance for the rental’s carbon monoxide detectors (430 Ill. Comp. Stat. 135/10).
- Rent concessions: Clarify the terms of any rent concessions, including incentives, time frames, and amounts (765 Ill. Comp. Stat. 730/3).
- Shared utilities: If the property shares utilities with other tenants, you must inform tenants and provide a breakdown of the split costs (765 Ill. Comp. Stat. 740/5).
There are also local laws to consider. For example:
- You must attach a summary of the Residential Landlord Tenant Ordinance to any leases in Cook County and Chicago.
- Landlords must attach an informational bed bug brochure to leases in Cook County and Chicago.
Next, let’s review the laws that govern a room rental agreement. Illinois landlords, here’s what you need to know:
Security Deposit Rules
Maximum security deposit: Illinois law doesn’t cap security deposits.
Security deposit receipt: There’s no statewide law requiring receipts. However, certain local jurisdictions require them, including Chicago (RLTO § 5-12-080)
Deduction tracking: You must create an itemized statement tracking each deduction and its details, and deliver it to tenants within 30 days of move-out (765 Ill. Comp. Stat. 705/1).
Security deposit return: If you don’t make any deductions, Illinois law gives you 45 days to return the security deposit. If you do withhold funds, you must send tenants the remaining balance plus an itemized statement within 30 days (765 Ill. Comp. Stat. 710/1).
Pet deposits: Illinois treats pet deposits as part of the security deposit, but there aren’t any laws capping the amount you can charge.
Rent Payment Rules
Late rent fees: Landlords may charge reasonable late fees if they are detailed in the lease, but the fees can’t exceed the greater of $20 or 20% of 1 month’s rent (765 Ill. Comp. Stat. 710/10).
Right to withhold rent: State law prohibits tenants from withholding rent at will, but it does permit them to follow a legal repair and deduct remedy if landlords fail to maintain safe, habitable housing (765 Ill. Comp. Stat. 742/5).
Grace period: Illinois law doesn’t mandate grace periods for rent.
Pet rent: You can charge a reasonable pet rent, but only if you define it in the lease.
Rent Payment Increase Rules
Rent payment increase frequency: State law doesn’t govern how often landlords increase rent.
Rent payment increase maximum: There isn’t a legal cap on rent amounts.
Rent control/stabilization: Illinois doesn’t have statewide rent control policies.
Illinois Room Rental Agreement Breaches
Failure to pay: You can charge late fees or give tenants a 5-Day Notice to Pay or Quit (735 Ill. Comp. Stat. 5/9-209).
Lease violations: Illinois law allows landlords to initiate eviction proceedings by following the state’s legal process (735 Ill. Comp. Stat. 5/9-102).
Self-help evictions: State law forbids landlords from forcing tenants out, changing the locks, or removing their belongings.
Terminating an Illinois Room Rental Agreement
Month-to-month: Landlords must give tenants 30 days’ written notice (765 Ill. Comp. Stat. 705/1).
Fixed-term: Landlords can’t terminate fixed-term leases early without facing penalties unless a lease clause specifically permits it (765 Ill. Comp. Stat. 705/1).
Room abandonment: When reclaiming the property, landlords should reduce damages by re-renting the room (735 Ill. Comp. Stat. 5/9-101).
Tenant’s right to terminate: Tenants may exit their lease early if:
- Their landlord included an early termination clause in the room rental agreement.
- Habitability issues are extreme (765 Ill. Comp. Stat. 705/9).
- They experience domestic violence (765 Ill. Comp. Stat. 740/1).
However, they must follow the legal process for terminating their lease.
Landlord Access Laws
Immediate access: Landlords may enter a tenant’s room without notice only in major emergencies.
Landlord harassment: State law prohibits landlords from harassing tenants. You can’t show up unannounced or enter their room by force (765 Ill. Comp. Stat. 705/1 et seq.).
Advance notice: Illinois law doesn’t set a specific advance notice period, but 24 hours is standard.
Lease Agreement Renewal and Termination
Required renewals: State law doesn’t require you to renew a room rental agreement.
Required notice: You must provide 30 days’ written notice to terminate a month-to-month lease agreement (765 Ill. Comp. Stat. 705/1).
Month-to-month considerations: If tenants remain in the room without re-signing a lease, Illinois law automatically converts fixed-term leases to month-to-month arrangements (765 Ill. Comp. Stat. 705/1 et seq.).
Follow these laws when creating a room rental agreement in Illinois to keep your leasing process clear, compliant, and worry-free.
Room Rental Agreement Illinois FAQs
What to include in an Illinois room rental agreement?
A room rental agreement in Illinois should cover rent, security deposits, disclosures, rules, and responsibilities.
How do I legally rent out a room?
Create a room rental agreement in Illinois. Consider using landlord software to streamline the process.
How to make an Illinois room rental agreement?
Try our simple online template. Download our printable PDF form at the top of this guide!
