An Illinois sublease agreement sets clear terms that allow a tenant to rent part or all of a unit to a new subtenant while the original lease remains active. This agreement supports a smooth transition between tenants, holds the new party accountable to the existing lease, and maintains a legally compliant rental arrangement for property owners.
Does a tenant need a landlord’s permission to sublease in Illinois?
Illinois does not provide tenants with a statewide right to sublease, so a tenant usually needs the landlord’s permission when the lease requires it. Chicago tenants have additional protections under the Chicago Residential Landlord and Tenant Ordinance (RLTO 5-12-120), which stops a landlord from unreasonably denying a sublease request.
Property owners protect their interests by addressing subleasing directly in their Illinois lease agreement. To handle subleasing in future documents, property owners should use a legally reviewed lease agreement builder to draft the contract on their behalf.
Information to Include in an Illinois Sublease
Landlords should approach a sublease the same way they handle any standard lease because it still outlines expectations for the rental. Here is the key information landlords should include in an Illinois sublease:
Names of landlord and sublessor: List the full legal names of both parties so the agreement clearly identifies everyone responsible for the sublease.
Rental unit address: Provide the complete rental address, including the unit number when applicable, to confirm the exact space covered by the agreement.
Length of the sublease agreement: Specify the start and end dates so all parties understand the exact duration of the sublease.
Rent amount: State the monthly rent the subtenant must pay and note any extra charges that follow the original lease terms.
Division of utilities: Explain how utilities will be handled and identify which costs the subtenant must cover, or consider attaching a landlord-tenant utility agreement.
Security deposit information: Outline the amount collected, the conditions for its return, and the rules that apply under Illinois security deposit laws.
Maintenance protocols: Explain how the tenant and subtenant will handle repairs and routine upkeep, or attach guidance from a rental property maintenance resource to keep expectations clear.
Property policies: Outline the rules the subtenant must follow, including guest limits, parking guidelines, noise expectations, and any other standards set for the property.
Early termination terms: Describe the conditions that allow either party to end the sublease early and specify any notice required to finalize that decision.
Landlord’s right to entry: Clarify when the landlord may enter the rental property and note any advance notice the landlord must give the tenant and subtenant.
Renter’s insurance: State whether the subtenant must maintain renter’s insurance and identify any minimum coverage the landlord expects.
Landlord’s consent to sublease: Confirm that the landlord approves the sublease and require the subtenant to follow all terms in the original lease.
Subtenant obligation to comply with master lease: Require the subtenant to follow all terms of the original lease so expectations remain clear and enforceable for everyone involved.
Move-in condition checklist: Add a checklist or attach a move-in condition report to document the unit’s condition upon the subtenant’s move-in.
Emergency contact information: Provide direct contact details for emergencies, maintenance needs, and any urgent issues that may affect the safety or condition of the rental.
Guest policy: List the rules for short-term and long-term guests so the subtenant understands limits that protect the property and maintain a consistent living environment.
Copy of master lease: Attach the full original lease so the subtenant knows the complete set of rules they must follow during the sublease term.
Signatures: Collect signatures from the tenant, subtenant, and landlord, or use an e-sign option to finalize the agreement easily.
Additional attachments: Include any added documents, disclosures, or checklists that support clarity and strengthen the landlord’s protections.
Taxes Implications for Short-Term Subleases
Short-term subleases in Illinois can trigger the state Hotel Operators’ Occupation Tax when the rental period is less than 30 days, because the state treats these stays as hotel lodging. Local jurisdictions set their own rates, and the tax applies to the amount the subtenant pays. Landlords and subtenants should review the requirements under (35 ILCS 145) before they move forward with any short-term arrangement.
Illinois landlords stay better prepared when they understand their local short-term lodging taxes, as rates vary across the state.
For example, in Chicago, the hotel operators’ tax includes:
- State tax – 6.17%
- City (Municipal) – 1.08%
- ISFA (Illinois Sports Facilities Authority) – 2.14%
- Cook County – 1%
- MPEA (Metropolitan Pier and Exposition Authority) – 2.5%
- City (Home Rule) – 4.5%
Total – 17.39%
