What Is an Illinois Lease Agreement?
An Illinois lease agreement is a legally binding document that a landlord and tenant sign under specific rental terms. It states what the tenant must do, like pay rent and follow certain rules, to live on the landlord’s property.
You can refer to this contract to review the key terms, including the security deposit amount and late fees. Plus, it clarifies expectations by stating the duties of both parties.
Illinois Landlord-Tenant Laws Overview
An Illinois residential lease agreement must adhere to state law to be enforceable. Explore an overview of the key Illinois landlord-tenant laws below.
| Topic | Rule | Law |
|---|---|---|
| Security Deposit Maximum | No cap | n/a |
| Security Deposit Storage | Must store in an interest-bearing account at the State of Illinois's last-year interest rate as of December 31. Note that this requirement only applies if the landlord holds the deposit for more than six months and the landlord has more than 25 rental units. | 765 ILCS 715/1 |
| Security Deposit Return | Within 45 days of the end of the lease | 765 ILCS 710/1 |
| Rent Control | Prohibited | Rent Control Preemption Act |
| Late Fee Maximum | $20 or 20% of the monthly rent, whichever is greater | 770 ILCS 95/7.10 |
| Grace Period | 5 days | 770 ILCS 95/7.10 |
| Acceptance of Cash Payments | Landlords must accept cash payments for rent for leases entered after January 1, 2025 | 765 ILCS 705/4 |
| Landlord Entry | No state-required notice | n/a |
Types of Illinois Lease Agreements
Depending on your situation, you can benefit from using a different Illinois lease agreement template. Some cater to specific property types (commercial vs. residential vs. room), while others accommodate different arrangements (month-to-month vs. rent-to-own vs. sublease). Explore Legal Templates’s various forms below to find the one that’s right for you.
Illinois Standard Lease Agreement
Facilitates a rental arrangement for a defined period.
Illinois Month-to-Month Rental Agreement
Tenants have the option to occupy a property on a month-to-month basis, without the need for a long-term commitment.
Illinois Commercial Lease Agreement
Allows a landlord to rent commercial/industrial property to a tenant.
Illinois Room Rental Agreement
Outlines the rights and obligations among individuals cohabiting in a rental property.
Illinois Sublease Agreement
Grants the subtenant the authority to rent either the entire or a portion of the leased property for a specified period.
Illinois Rent-to-Own Lease Agreement
Allows a part of the monthly rent to contribute toward the property's future purchase.
Security Deposit Regulations in Illinois
Illinois state law doesn’t impose a maximum amount on security deposits, so landlords can charge any amount. However, landlords owning more than 25 rental units must deposit security deposits in an interest-bearing account at the State of Illinois’s last-year interest rate as of December 31 (765 ILCS 715/1). Note that this requirement only applies if the landlord holds the deposit for more than six months. Landlords are required to make interest payments every 12 months.
Security deposits must be returned within 45 days after the move-out date. If deductions for damages are made, returns, along with an itemized statement of repairs and damages, must be issued within 30 days (765 ILCS 710/1).
Illinois Rent Payment Rules
Rent is typically due on the first of each month, unless the Illinois rental agreement states otherwise. The Rent Control Preemption Act prevents cities from enacting their own rent control laws. Some cities, like Chicago, have rules on required notice periods for rent increases.
Landlords may impose a late fee of $20 or 20% of the monthly rent, whichever is greater, for rent overdue by more than five days. If rent is not paid, a landlord may give a 5-day notice to quit for non-payment of rent (770 ILCS 95/7.10).
Landlords must accept cash payments for rent for leases entered after January 1, 2025. They cannot force electronic payment (765 ILCS 705/4).
Tenants can pay for essential repairs and deduct the costs from their rent under certain conditions (765 ILCS 742/5). The tenant must give 14 days’ notice, and the repair must be required under the lease or a state or local law.
Landlord Entry Regulations in Illinois
Under state law, landlords are not required to give the tenant prior notice before entering the property. However, giving at least 24 hours’ notice is highly recommended.
Some cities require a certain amount of notice before a landlord’s entry. For example, Chicago requires two days’ notice (except in emergencies) before a landlord can enter.
After a rental unit is vacated, the landlord must change or rekey its immediate access before a new tenant moves in (765 ILCS 705/15).
Illinois Landlord and Tenant Property Repair Responsibilities
Landlords are responsible for the following actions per the Illinois Attorney General:
- Keeping properties livable
- Adhering to health and safety standards
- Making timely repairs
- Establishing reasonable rental terms
Tenants should maintain a safe, clean environment and avoid damaging the property.
Required Lease Disclosures in Illinois
Specific laws mandate that landlords provide certain documents along with Illinois lease agreements, such as the following disclosures:
- Smoke and Carbon Monoxide Disclosure. Confirms there are smoke detectors and carbon monoxide detectors in the rental property when the tenant moves in.
- Radon Disclosure. Informs on the possible presence of radon in a rental unit (420 ILCS 46/).
- Shared Utilities Notice. Determines the formula for calculating split utility costs and notes that utilities are separate from rent (765 ILCS 740/).
- Rent Concessions Disclosure. Required disclosure of any rent concessions in the lease, such as free first or last month’s rent (765 ILCS 730/).
- Flood Risk Disclosure. Must reveal if the property is in a FEMA Special Flood Hazard Area or if the unit has recently flooded (765 ILCS 705/25). Also, this disclosure requires the landlord to reveal if the unit is at garden- or basement-level or on the first floor.
- Disclosure of Lead-Based Hazards. Notes the possible presence of lead-based paint hazards in rental units built before 1978 (42 US Code § 4852d).
Terminating a Lease in Illinois
A month-to-month tenancy can be terminated by either party giving the other a written notice at least 30 days before the next rent-paying date (735 ILCS 5/9-207).
Landlords must mitigate damages if a lease is broken (735 ILCS 5/9-213.1), but can’t claim abandonment based on a set absentee period.
Illinois Lease Agreement Sample
Learn what an Illinois lease agreement looks like by viewing our free sample. Then, create your own form with customized terms using Legal Templates’s guided questionnaire. Download the final copy for both parties as a PDF or Word document.
