An Illinois lease agreement is a legally binding document a landlord and tenant sign under specific rental terms.
Federal and state laws require lease agreements in Illinois to include the following: information on both parties and the rented unit, any disclosures regarding any known health and safety hazards or risks, the amount of the rent and security deposit, and when and how to pay, as well as any late fees, grace periods, and non-sufficient funds (NSF) checks.
By Type (6)
Room Rental Agreement
Outlines the rights and obligations among individuals cohabiting in a rental property.
Commercial Lease Agreement
Allows a landlord to rent commercial/industrial property to a tenant.
Rent-to-Own Lease Agreement
Allows a part of the monthly rent to contribute toward the property's future purchase.
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.
Sublease Agreement
Grants the subtenant the authority to rent either the entire or a portion of the leased property for a specified period.
Laws
Overview
Rent Control: No.
Limit on Late Fees: No.
Late Fees in Rental Agreement: Yes.
Grace Period: Yes.
License Required for Landlord: Only in Cook County (in buildings of four units or more).
Required Lease Disclosures
Illinois state law imposes specific requirements for a lease contract, so landlords and property managers must be aware of pertinent rental laws. For example, the Illinois Landlord and Tenant Act (765 Illinois Compiled Statutes 705/) mandates that landlords and property managers need to provide certain documents along with Illinois lease agreements, such as the following disclosures:
- Smoke and Carbon Monoxide Disclosure. Confirms there are smoke detectors (Smoke Detector Act) and carbon monoxide detectors (Carbon Monoxide Alarm Detector Act) 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/) Illinois Radon Awareness Act).
- Shared Utilities Notice. Determines the formula for calculating split utility costs and notes that utilities are separate from rent ((765 ILCS 740/) Tenant Utility Payment Disclosure Act).
- Rent Concessions Disclosure. Required disclosure of any rent concessions in the lease, such as free first or last month’s rent ((765 ILCS 730/) Rent Concession Act).
- Disclosure of Lead-Based Hazards. Notes the possible presence of lead-based paint hazards in rental units built before 1978.
Security Deposit
There is no limit on how much a landlord may request from the tenant as a security deposit (No statute). For properties with five or more units, the landlord must return the security deposit to the tenant within 45 days after the tenant leaves the premises.
If the landlord deducts any amount from the security deposit for repairs of tenant damage, the landlord must return the security deposit within 30 days after the tenant leaves the premises and include an itemized statement of the repair and damage (765 ILCS 710/1).
Landlord Right of Entry
The landlord is not required to give prior notice to the tenant before entering the property. However, giving at least 24 hours’ notice is highly recommended (No statute).
Sample
Below is an example of what an Illinois lease agreement template looks like.
