Illinois Standard Residential Lease Agreement

A Comprehensive Guide to Illinois Landlord-Tenant Law

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 in the State of Illinois. This document governs the landlord-tenant relationship, including rent payments, security deposits, maintenance responsibilities, required disclosures, and termination procedures. Illinois landlord-tenant law is primarily governed by the Illinois Landlord and Tenant Act (765 ILCS 705), along with several other specific statutes addressing security deposits, disclosures, and tenant protections. ^[1] This guide provides comprehensive information on creating a compliant Illinois residential lease agreement.

Illinois Legal Framework

Illinois residential leases are governed by multiple state statutes and federal law. The primary state statute is the Illinois Landlord and Tenant Act (765 ILCS 705), which establishes fundamental landlord-tenant rights and obligations. ^[1] Additional Illinois statutes regulate specific aspects of the landlord-tenant relationship:

*Security Deposit Return Act (765 ILCS 710) - Governs security deposit return timelines and itemization requirements. *^[2]

*Security Deposit Interest Act (765 ILCS 715) - Requires interest payments on security deposits for properties with 25 or more units. *^[3]

*Rent Concession Act (765 ILCS 730) - Requires disclosure of any rent concessions granted to tenants. *^[4]

*Tenant Utility Payment Disclosure Act (765 ILCS 740) - Requires disclosure of shared utility allocation formulas. *^[5]

*Residential Tenants' Right to Repair Act (765 ILCS 742) - Allows tenants to make repairs and deduct costs from rent under certain conditions. *^[6]

*Illinois Code of Civil Procedure (735 ILCS 5/9-201 et seq.) - Governs eviction procedures and notice requirements. *^[7]

At the federal level, the Fair Housing Act (42 U.S.C. 3604) prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability. ^[8] Federal law also mandates lead-based paint disclosures for housing built before 1978 under 42 U.S.C. 4852d. ^[9]

Required Disclosures Under Illinois Law

Illinois law mandates several specific disclosures that landlords must provide to tenants before or at the time of lease execution:

Radon Hazard Disclosure

Under the Illinois Radon Awareness Act (420 ILCS 46), landlords must disclose any known radon hazards to prospective and current tenants for units located on the second floor or below. ^[10] Landlords must provide the Illinois Emergency Management Agency (IEMA) pamphlet titled "Radon Guide for Tenants." If radon testing has been conducted and shows levels of 4 picocuries per liter (pCi/L) or higher, this must be disclosed. Tenants have 90 days from lease commencement to conduct their own radon test. If the tenant's test shows elevated levels and the landlord declines to mitigate, the tenant may terminate the lease.

Lead-Based Paint Disclosure

For properties built before 1978, federal law (42 U.S.C. 4852d and 24 CFR Part 35) requires landlords to: (1) provide the EPA pamphlet "Protect Your Family From Lead in Your Home," (2) disclose any known lead-based paint or lead-based paint hazards, (3) provide copies of any available lead hazard evaluation reports, and (4) include a Lead Warning Statement in the lease. ^[9] Landlords must retain records for at least 3 years. Violations can result in civil penalties up to $19,507 per violation and treble damages in private suits.

Carbon Monoxide Detector Disclosure

The Carbon Monoxide Alarm Detector Act (430 ILCS 135) requires landlords to install and maintain carbon monoxide detectors within 15 feet of every room used for sleeping. ^[11] Landlords must ensure batteries are operational at tenant move-in and provide information about detector testing and maintenance. Tenants are responsible for routine testing and battery replacement. Willful failure to comply is a Class B misdemeanor.

Smoke Detector Disclosure

The Smoke Detector Act (425 ILCS 60) requires smoke detectors within 15 feet of every sleeping room and on every story of the dwelling, including basements. ^[12] Landlords must supply and install all required detectors, ensure batteries are operational at move-in, and provide tenants with written information regarding testing and maintenance. For properties built or substantially remodeled after January 1, 2011, detectors must be hardwired with battery backup.

Flood Hazard Disclosure (effective January 1, 2025)

Under 765 ILCS 705/25 (Public Act 103-0754), landlords must disclose in writing prior to lease signing whether the property is located in a FEMA Special Flood Hazard Area ("100-year floodplain") and whether the landlord has actual knowledge that the property or parking areas have been subjected to flooding, including the frequency of such flooding. ^[13] For lower-level units (garden, basement, or first floor), landlords must disclose if the unit has experienced flooding in the last 10 years. This disclosure must also be included in the written lease. If a landlord fails to comply and the tenant later discovers the property is in a flood zone, the tenant may terminate the lease within 30 days and receive a full refund of rent and fees paid in advance.

Rent Concession Disclosure

The Rent Concession Act (765 ILCS 730) requires that if any rent concession is granted (credit, rebate, rent-free period, or other valuable consideration not expressly stated in the lease), the lease must bear a legend in letters not less than one-half inch high stating "CONCESSION GRANTED," along with a memorandum describing the amount and nature of each concession. ^[4] Failure to disclose is a Class A misdemeanor.

Shared Utility Disclosure

Under the Tenant Utility Payment Disclosure Act (765 ILCS 740), if tenants share utility meters, the landlord must provide a written copy of the formula used for allocating utility payments among tenants before demanding payment. ^[5] The formula must be provided as part of the lease or in a separate written agreement. The total charges under the formula cannot exceed the utility bill, and landlords must make the actual utility bill available upon tenant request.

Security Deposit Rules

Maximum Amount

Return Timeline

Under the Security Deposit Return Act (765 ILCS 710), landlords must return security deposits within 30 days of lease termination if making deductions, or within 45 days if no deductions are made. ^[2] If the landlord makes deductions, an itemized statement of damages must be provided within 30 days, with the remaining deposit returned within an additional 15 days (for a total of 45 days).

Interest on Security Deposits

Under the Security Deposit Interest Act (765 ILCS 715), landlords of properties containing 25 or more units must pay interest on security deposits held for more than 6 months. ^[3] The interest rate is set annually by the Illinois Department of Financial and Professional Regulation, based on the passbook savings rate of the largest Illinois commercial bank. Interest must be paid within 30 days after each 12-month rental period, either by cash or credit applied to rent due.

Penalties for Non-Compliance

If a landlord willfully refuses to return the security deposit or fails to provide an itemized statement in bad faith, the tenant may recover twice the amount of the deposit due, plus court costs and reasonable attorney's fees. ^[2]

Rent and Payment Terms

Grace Period

Illinois state law does not mandate a grace period for rent payments. Rent is due on the date specified in the lease. However, landlords may include a voluntary grace period in the lease agreement.

Late Fees

Illinois does not impose a statewide cap on late fees for residential leases. Late fees must be agreed to in writing in the lease agreement. Courts may decline to enforce fees deemed unconscionably high. Local ordinances may impose limits: Chicago caps late fees at $10 for the first $500 of monthly rent plus 5% of any additional rent; Cook County (suburban) caps fees at $10 for the first $1,000 of rent plus 5% thereafter.

Payment Methods (2024 Updates)

The Illinois Landlord and Tenant Act was amended effective January 1, 2024, to prohibit landlords from requiring tenants to make recurring rent payments by automatic electronic funds transfer (765 ILCS 705/4). ^[1] Additionally, for leases entered after January 1, 2025, landlords must accept cash payments for rent and cannot mandate electronic payment exclusively.

Landlord Obligations

Lock Change Requirements

Under 765 ILCS 705/15, after a dwelling unit is vacated and before a new tenant takes possession, the landlord must change or rekey the locks providing immediate access to the unit. ^[14] "Change or rekey" includes: replacing the lock, replacing the cylinder mechanism, changing a combination or digital lock, or otherwise changing the means of access. If a landlord fails to comply and a theft occurs attributable to this failure, the landlord is liable for resulting damages. Exemptions apply to owner-occupied buildings with 4 or fewer units and room rentals in owner-occupied homes.

Implied Warranty of Habitability

Illinois courts recognize an implied warranty of habitability in all residential leases. ^[15] Landlords must maintain the property in a safe and sanitary condition fit for human habitation throughout the lease term. This includes: working heating, plumbing, and electrical systems; hot and cold running water; functioning sanitary facilities; structural integrity; pest control; and compliance with all applicable building codes. This warranty cannot be waived by lease provisions.

Repair Obligations

Under the Residential Tenants' Right to Repair Act (765 ILCS 742), landlords must respond to repair requests within 14 days of receiving written notice from the tenant (sent via registered or certified mail). ^[6] If the landlord fails to make necessary repairs within this period, the tenant may arrange for repairs and deduct the cost from rent, up to the lesser of $500 or one-half month's rent. Emergency repairs (those affecting health or safety) may be made immediately.

Tenant Rights and Protections

Protection From Retaliation

The Illinois Landlord Retaliation Act (765 ILCS 721), effective January 1, 2025, prohibits landlords from retaliating against tenants who: complain to governmental authorities about code violations; complain to community organizations or news media; request repairs; or exercise other legal rights. ^[16] Prohibited retaliatory actions include: terminating tenancy, increasing rent, decreasing services, or threatening legal action. If landlord action occurs within one year of a protected complaint, there is a rebuttable presumption of retaliation. Remedies include twice the monthly rent or twice actual damages (whichever is greater), plus reasonable attorney's fees.

Early Termination Rights

Military Service: Under the federal Servicemembers Civil Relief Act (50 U.S.C. 3955), military service members may terminate residential leases with 30 days' written notice when receiving deployment orders or permanent change of station orders for 90 days or longer. ^[17]

Domestic Violence: Illinois allows victims of domestic violence, sexual violence, or stalking who face an imminent threat at their rental unit to terminate their lease early upon providing proper documentation (such as a police report or protective order) and written notice to the landlord.

Uninhabitable Conditions: If a landlord fails to maintain habitable premises, tenants may terminate the lease under the doctrine of constructive eviction.

Right of Quiet Enjoyment

Illinois law recognizes an implied covenant of quiet enjoyment in all residential leases. Tenants have the right to use and possess the rental property without substantial interference from the landlord. Violations may include: excessive or unauthorized entry, harassment, failure to address disturbances from other tenants, or failure to maintain common areas.

Lease Termination and Eviction

Notice Requirements

Under 735 ILCS 5/9-207, the following notice periods apply to terminate tenancies in Illinois: ^[7]

Week-to-week tenancy: 7 days' written notice

Month-to-month or any tenancy less than one year: 30 days' written notice

Fixed-term lease: Terminates automatically at end of term unless otherwise specified

Non-Payment of Rent

Under 735 ILCS 5/9-209, if a tenant fails to pay rent, the landlord may serve a written demand for payment specifying that unless payment is made within a period of not less than 5 days, the lease will be terminated. ^[18] The notice must state: "Only FULL PAYMENT of the rent demanded in this notice will waive the landlord's right to terminate the lease under this notice, unless the landlord agrees in writing to continue the lease in exchange for receiving partial payment."

Eviction Process

Landlords cannot forcibly remove tenants without a court order. The eviction process in Illinois (called "Forcible Entry and Detainer") requires: (1) proper written notice as required by law; (2) filing an eviction lawsuit in circuit court if the tenant does not comply; (3) court hearing where the tenant may present defenses; (4) if the landlord prevails, issuance of a judgment for possession; (5) sheriff enforcement of the eviction order. Self-help evictions (changing locks, removing belongings, shutting off utilities) are prohibited and subject landlords to liability.

Essential Lease Terms

Every Illinois residential lease agreement should include the following essential terms:

Parties: Full legal names and addresses of all landlords and tenants

Property Description: Complete address including unit number, type of property, and description of premises

Lease Term: Start date, end date, and whether fixed-term or month-to-month

Rent Amount and Due Date: Monthly rent amount, due date, accepted payment methods, and where to pay

Security Deposit: Amount collected and terms for return

Late Fees: Amount and when assessed (must be in writing to be enforceable)

Utilities: Which utilities are included and which are tenant responsibility

Maintenance Responsibilities: Division of maintenance duties between landlord and tenant

Occupancy Limits: Maximum number of occupants and authorized residents

Pet Policy: Whether pets are allowed, restrictions, and any pet deposits (service animals must be accommodated per the Fair Housing Act)

Required Disclosures: All applicable Illinois disclosures (radon, lead paint, smoke/CO detectors, flood, rent concessions, shared utilities)

Termination Provisions: Notice requirements for termination and renewal procedures

How to Create an Illinois Residential Lease Agreement

Step 1: Identify the Parties

Include the full legal names and current addresses of all landlords (or property management company) and all tenants who will be living in the rental unit. All adult occupants should be named on the lease.

Step 2: Describe the Property

Provide the complete street address, unit number (if applicable), city, county, and ZIP code. Include a description of the property type (apartment, house, condominium, etc.), number of bedrooms and bathrooms, and any included amenities (parking spaces, storage, appliances).

Step 3: Establish the Lease Term

Specify the exact start date and end date of the lease. Indicate whether the lease is for a fixed term (e.g., 12 months) or month-to-month. Include provisions for renewal and notice requirements for termination.

Step 4: Define Rent and Payment Terms

State the monthly rent amount, due date (commonly the 1st of each month), accepted payment methods, and where payments should be made. Include any grace period (voluntary in Illinois), late fee amounts, and NSF check fees. Remember that as of 2025, landlords must accept cash as a payment option.

Step 5: Document the Security Deposit

State the security deposit amount, acceptable forms of payment, and the terms under which deductions may be made. Reference the statutory return deadlines (30-45 days under 765 ILCS 710). For properties with 25+ units, note the interest payment requirements.

Step 6: Include All Required Disclosures

Attach all required Illinois disclosures: radon disclosure and pamphlet (for units on 2nd floor or below), lead-based paint disclosure (for pre-1978 properties), smoke detector information, carbon monoxide detector information, flood hazard disclosure (effective 2025), rent concession disclosure (if applicable), and shared utility allocation formula (if applicable).

Step 7: Define Maintenance and Repair Responsibilities

Clearly allocate maintenance responsibilities between landlord and tenant. Remember that the landlord's duty to maintain habitable conditions cannot be waived. Include procedures for requesting repairs and emergency maintenance contacts.

Step 8: Add House Rules and Policies

Include policies on pets, smoking, noise, guests, parking, and any other rules. Ensure policies comply with fair housing requirements (e.g., service animal accommodations).

Step 9: Sign and Date the Lease

Have all parties sign and date the lease. While Illinois does not require notarization or witnesses for residential leases, signatures of all adult tenants and the landlord (or authorized agent) are required. Provide a complete copy of the signed lease to each tenant.

Step 10: Conduct Move-In Inspection

Before or at move-in, conduct a thorough inspection with the tenant and document the condition of the property with a written checklist and photographs. Both parties should sign the inspection report. This documentation protects both landlord and tenant when assessing damages at move-out.