Illinois Residential Lease Agreement

Introduction

An Illinois residential lease agreement is a legally binding contract between a landlord and tenant that establishes the terms and conditions for renting residential property. Once signed, the lease becomes enforceable for the duration of the lease term. Illinois landlord-tenant relationships are governed by various state statutes, local ordinances (particularly in Chicago), and case law establishing the implied warranty of habitability.

This guide covers the key legal requirements, rights, and obligations for both landlords and tenants under Illinois law, with special attention to Chicago's Residential Landlord and Tenant Ordinance (RLTO) which provides additional tenant protections.

Types of Lease Agreements

Illinois recognizes several types of residential lease arrangements:

Standard Fixed-Term Lease

A lease for a specific period (commonly one year) that automatically terminates on the end date unless renewed. Both Chicago and areas outside Chicago have their own standard lease forms due to differing legal requirements.

Month-To-Month Rental Agreement

A periodic tenancy that continues indefinitely until either party provides proper notice to terminate. Under Illinois law, 30 days' written notice is required to terminate a month-to-month tenancy. ^[4]

Rent-To-Own Agreement

Combines a standard lease with an option to purchase the property at a predetermined price during or at the end of the lease term.

Sublease Agreement

Allows an existing tenant to rent all or part of their leased space to another person (subtenant), typically requiring landlord approval. The original tenant remains responsible under the master lease.

Roommate Agreement

An arrangement between co-tenants sharing a rental unit, establishing responsibilities for rent, utilities, common areas, and house rules.

Required Disclosures

Illinois law requires landlords to provide certain disclosures to tenants before or at the time of lease signing:

Lead-Based Paint Disclosure (Federal)

For properties built before 1978, landlords must disclose known information about lead-based paint hazards and provide the EPA pamphlet 'Protect Your Family From Lead in Your Home.' This is a federal requirement under 42 U.S.C. 4852d. ^[11]

Radon Disclosure

Upon tenant request, landlords must provide: (a) a disclosure form describing their knowledge of radon on the premises, (b) any records or reports regarding radon concentrations, and (c) the 'Radon Guide for Tenants' pamphlet published by the Illinois Emergency Management Agency. ^[6]

Smoke and Carbon Monoxide Detectors

Landlords must provide and maintain smoke detectors ^[9] and carbon monoxide detectors within 15 feet of sleeping areas. ^[10] Information about detector testing and maintenance must be included in the lease.

Rent Concession Disclosure

Any rent concession granted to the tenant must be clearly stated in the lease agreement. If a concession exists, the words 'Concession Granted' must appear prominently (at least 1/2 inch in height) on the first page. Failure to disclose is a misdemeanor. ^[7]

Shared Utility Meter Disclosure

If a tenant shares a utility meter with other units or common areas, the landlord must disclose this arrangement and explain the formula used to calculate the tenant's share of utility costs. ^[8]

Chicago Rlto Additional Disclosures

Properties within Chicago city limits are subject to the Residential Landlord and Tenant Ordinance (RLTO), which requires additional disclosures: ^[12]

RLTO Summary: A summary of the ordinance must be attached to every written lease

Code Violations: Disclosure of any code violations cited in the previous 12 months

Foreclosure Notice: Written notice within 7 days if landlord is served with foreclosure complaint

Owner Identification: Name, address, and phone number of the owner or managing agent

Bed Bug Information: Brochure on bed bug prevention and treatment

Security Deposits

Maximum Amount

Illinois state law does not set a maximum limit on security deposit amounts. Landlords may charge any amount they deem appropriate, though market conditions typically limit deposits to 1-2 months' rent.

Interest Requirements

Landlords who own 25 or more units (in a single building or contiguous complex) must pay interest on security deposits held for more than 6 months. The interest rate is based on the passbook savings rate at the largest Illinois commercial bank as of December 31 of the preceding year. ^[2]

Return Deadline

Landlords must return the security deposit within 45 days after the tenant vacates the premises. If deductions are made, an itemized statement of damages with estimated or actual repair costs must be provided within 30 days, followed by remaining funds within 15 days after that (45 days total). ^[1]

Itemized Statement Requirements

If any portion of the deposit is withheld, the landlord must provide: (1) an itemized list of damages, (2) estimated or actual repair costs, and (3) copies of paid receipts. If estimated costs are provided initially, actual receipts must be furnished within 30 days. ^[1]

Receipt Requirements

Upon receiving a security deposit, the landlord must provide a written receipt containing: the amount received, name of person receiving it, landlord's name (if received by agent), date received, and description of the dwelling unit. ^[1]

Penalty for Non-Compliance

A landlord who fails to comply with security deposit requirements may be liable for damages equal to twice the amount of the security deposit, plus court costs and reasonable attorney's fees. ^[1]

Rent Payments

Grace Period

**General Residential Leases: **Illinois state law does not require landlords to provide a grace period for rent payment. Late fees may be assessed immediately after the due date unless the lease specifies otherwise.

Mobile Home Parks: A 5-day grace period is required. Late fees cannot be assessed until rent remains unpaid for at least 5 days after the due date. ^[13]

Late Fees

**General Residential Leases: **No statutory limit on late fees under state law. However, courts may strike down fees deemed excessive or punitive.

Mobile Home Parks: Late fees cannot exceed $20 or 20% of the monthly rent, whichever is greater. ^[13]

Chicago (RLTO): Late fees are capped at $10 for the first $500 of monthly rent, plus 5% of any amount exceeding $500. ^[12]

NSF (bounced Check) Fees

Landlords may charge up to $25 for checks returned due to insufficient funds. ^[16]

Tenant's Right to Repair and Deduct

Under the Residential Tenants' Right to Repair Act, tenants may make necessary repairs and deduct the cost from rent under certain conditions: ^[5]

The repair must be required by the lease, law, or local ordinance

The reasonable cost cannot exceed $500 OR one-half of monthly rent, whichever is LESS

Tenant must notify landlord in writing via certified or registered mail

Landlord has 14 days to make repairs (or respond promptly in emergencies)

If landlord fails to act, tenant may hire a licensed tradesperson

tenant Must Submit Paid Receipt Before Deducting From Rent

Landlord's Right of Entry

State Law (outside Chicago)

Illinois state law does not specify notice requirements for landlord entry. However, landlords should act reasonably and provide advance notice whenever possible except in emergencies.

Chicago Rlto Requirements

In Chicago, landlords must provide at least 2 days' notice before entering a rental unit, except in emergencies. Notice may be given by mail, telephone, written notice at the unit, or other reasonable means. Entry is permitted only at reasonable times (8am-8pm is presumed reasonable). ^[12]

Permitted reasons for entry include: making repairs, supplying services, inspections, showing unit to prospective tenants/buyers, and emergencies.

Eviction Procedures

Non-Payment of Rent

If rent is unpaid, the landlord may serve a 5-Day Notice to Pay or Quit. The notice must state that the lease will terminate unless full payment is made within 5 days. If the tenant fails to pay, the landlord may file an eviction lawsuit. ^[3]

Lease Violations (non-Compliance)

For lease violations other than non-payment, the landlord may serve a 10-Day Notice to Cure or Quit. The tenant has 10 days to remedy the violation or vacate the premises. ^[17]

Week-To-Week Tenancy

To terminate a week-to-week tenancy, the landlord must provide 7 days' written notice. ^[4]

Month-To-Month Tenancy

To terminate a month-to-month tenancy, the landlord must provide 30 days' written notice. ^[4]

Prohibited Self-Help Eviction

Landlords are prohibited from engaging in 'self-help' eviction tactics, including: changing locks, removing doors/windows, shutting off utilities, or removing tenant belongings. Such actions violate the Chicago RLTO and may result in penalties. ^[12]

Implied Warranty of Habitability

Illinois recognizes an implied warranty of habitability in every residential lease, established by the Illinois Supreme Court in Jack Spring, Inc. v. Little (1972). This warranty is fulfilled by 'substantial compliance with the pertinent building code.'

Minimum Habitability Requirements Include:

Safe and structurally sound building

Hot and cold running water

Functional heating, ventilation, and air conditioning

Working plumbing and electrical systems

Smoke detectors and carbon monoxide detectors

Freedom from pest infestations

Compliance with local housing codes

**Tenant Remedy: **Breach of the implied warranty may be asserted as a defense to eviction for non-payment or as the basis for a claim for reduction in rental value. However, the tenant must prove damages equal to or exceeding rent claimed due.

Landlord's Duty to Mitigate Damages

If a tenant breaks a lease early, the landlord has a legal duty to make reasonable efforts to re-rent the unit at fair market value. The landlord cannot simply leave the unit vacant and hold the tenant liable for the remaining rent. If the landlord succeeds in re-renting, the original tenant is only liable for the difference between the original rent and the new rental amount, plus reasonable advertising costs. ^[18]

Protection Against Retaliation

The Illinois Landlord Retaliation Act (effective 2025) prohibits landlords from retaliating against tenants who exercise their legal rights. Protected tenant activities include: ^[19]

Complaining to government agencies about code violations

Joining or organizing a tenant union

Requesting repairs or maintenance

Exercising any right under landlord-tenant law

Prohibited retaliatory actions by landlords include: raising rent, reducing services, terminating the lease, or threatening eviction. If retaliation occurs within one year of protected activity, it creates a rebuttable presumption that the landlord's action was retaliatory.

**Tenant Remedies: **A tenant may recover possession, terminate the lease, and obtain damages equal to twice the monthly rent or twice actual damages (whichever is greater), plus reasonable attorney's fees. ^[19]

Fair Housing Protections

The Illinois Human Rights Act provides broader fair housing protections than federal law. Discrimination in housing is prohibited based on the following protected classes: ^[14]

**Filing a Complaint: **If you experience housing discrimination, you may file a complaint with the Illinois Department of Human Rights within 365 days of the alleged discrimination. ^[15]

Abandonment

Illinois does not have a specific state statute defining abandonment of residential property. However, landlords should use caution and document evidence of abandonment before re-entering the premises or disposing of belongings.

Chicago Rlto Rules

Under the Chicago RLTO, abandonment occurs when the tenant: (1) provides actual notice of intent not to return, (2) is absent for 21+ days with personal property removed and rent unpaid, or (3) is absent for 32+ days with rent unpaid. The landlord must store abandoned property for at least 7 days before disposal. ^[12]