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An Illinois lease agreement is a legally binding document that outlines the terms under which a landlord rents residential or commercial property to a tenant. This agreement becomes effective once it is signed by both parties and remains in force until the lease term concludes.

Key Components of a Lease Agreement

A lease agreement in Illinois must include the following essential details:

  • Information about both parties: This includes the names and contact information of the landlord and tenant.
  • Description of the rented unit: A clear description of the property being leased.
  • Amount of rent and security deposit: The total rent amount and any security deposit required.
  • Payment terms: Details regarding when rent is due, acceptable payment methods, and any applicable late fees or grace periods.
  • Non-sufficient funds (NSF) charges: Information on fees related to bounced checks.

Rental Application

A rental application is utilized by landlords to screen potential tenants. This document collects necessary information to assess tenant eligibility before the lease agreement is signed.

Required Lease Disclosures

Illinois law mandates specific disclosures in lease agreements to inform tenants of health and safety hazards. The following disclosures are required:

1. Radon Hazard Disclosure

This disclosure is applicable to any rental unit located below the third floor that has known dangerous radon levels. Landlords must provide tenants with a state-approved pamphlet about radon dangers and any records indicating a radon hazard.

2. Carbon Monoxide Detector Disclosure

Landlords are required to provide information regarding the testing and maintenance history of carbon monoxide detectors present in the rental property.

3. Smoke Detector Disclosure

Landlords must inform tenants about the testing and maintenance of smoke detectors. Tenants are responsible for daily maintenance, such as replacing batteries.

4. Shared Utility Meters Disclosure

This disclosure is required for properties with shared utility meters. The lease must include a breakdown of how utility charges are apportioned among tenants and provide copies of utility bills for the past 12 months.

5. Concession Granted Disclosure

Any rent concessions must be disclosed in writing, with the phrase “Concession Granted” printed in at least half-inch type. Failure to disclose may result in a Class A misdemeanor.

6. Lead-Based Paint Disclosure

For properties built before 1978, landlords must disclose any lead-based paint hazards and provide an EPA-approved pamphlet about lead paint dangers.

Optional Disclosures and Addenda

While not legally required, the following optional disclosures can help manage tenant relationships and limit landlord liability:

  • Asbestos Disclosure: Informs tenants about any asbestos hazards.
  • Bed Bugs Disclosure: Informs tenants of any history of bed bug infestations.
  • Landlord’s Name and Address: Specifies the landlord’s contact information.
  • Late/Returned Check Fees: Specifies any late fees or returned check fees.
  • Medical Marijuana Use: Informs tenants about policies regarding medical marijuana use.
  • Mold Disclosure: Informs tenants about any mold contamination.
  • Move-In Checklist: Provides an inventory of existing property damage.
  • Non-Refundable Fees: Discloses any non-refundable fees.
  • Smoking Policy: Informs tenants of designated smoking areas.

Chicago-Specific Rules

In addition to state requirements, landlords in Chicago must provide:

  • A summary of the city’s Residential Landlord and Tenant Ordinance.
  • A summary of local rules about security deposit interest rates.
  • A “Preventing Bed Bugs” brochure.
  • Rules for recycling in Chicago.

Security Deposits

  • Maximum Amount: There is no limit on the amount that can be charged as a security deposit.
  • Interest Payments: Landlords with more than 25 rental units must deposit security deposits in an interest-bearing account.
  • Returning Requirements: Security deposits must be returned within 45 days after the tenant vacates the property, along with an itemized statement of any deductions provided within 30 days.

Rent Payments

Rent is typically due on the first of each month unless otherwise stated in the lease. Late fees may be imposed if rent is overdue by more than five days, provided these fees are specified in the lease agreement.

Terminating a Lease

Month-to-month tenancies can be terminated by either party with a written notice at least 30 days before the next rent payment date.

FAQs

In Illinois, mandatory disclosures for residential lease agreements include information about radon hazards, carbon monoxide detectors, smoke detectors, shared utility arrangements, rent concessions, and lead-based paint hazards for properties built before 1978. These disclosures ensure tenants are informed about potential health and safety risks associated with the rental property.

In Illinois, a residential lease can be for any length of time as long as it is agreed upon in writing by both the landlord and tenant. Oral leases can be valid but typically cannot exceed one year, and they often have strict limitations on enforceability.

Yes, a lease agreement is legally binding in Illinois once it is signed by both the landlord and tenant. It must conform to state laws, and while it does not need to be notarized, having a written agreement is essential for enforceability.

If a landlord fails to include mandatory disclosures in an Illinois lease, they may face legal consequences, including potential lawsuits from tenants or penalties from state officials. For example, not disclosing a rent concession can result in a Class A misdemeanor.

Yes, a lease can automatically renew in Illinois. Most rental agreements will transition to a month-to-month rental agreement after the initial term ends, maintaining the same basic terms and conditions unless otherwise specified.

In Illinois, there is no maximum limit on security deposits, and landlords must return the deposit within 30 days after the tenant vacates. If there are deductions for damages, an itemized statement must be provided within 30 days, and the remaining deposit must be returned within 45 days.

Common types of lease agreements in Illinois include standard residential leases, month-to-month rental agreements, commercial leases, and sublease agreements. Each type serves different rental situations and tenant needs.

A rental application in Illinois is used by landlords to screen potential tenants. It typically collects necessary information such as personal details, rental history, and financial information to assess the applicant’s eligibility.