Illinois Lease Agreements (7) | Residential & Commercial

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Updated January 12, 2023

An Illinois lease agreement is a document between a landlord and tenant for the use of residential or commercial property in exchange for the payment of rent. The tenant should first view the space and, if interested, should request to submit their credit and background details through a rental application.

Once the landlord has reviewed their credentials and the tenant is approved, the negotiations will begin for rent, security deposits, and the responsibilities of each party.

Rental Application – Used by the landlord to screen any potential lessee.

Table of Contents

Agreement Types (7)

Standard Residential Lease (Chicago Only) – For a fixed term, usually one year, for any residential unit within Chicago city limits.

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Standard Residential Lease (Outside Chicago) – For a fixed term, usually one year, for any residential unit outside Chicago.

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Commercial Lease Agreement – For a landlord-tenant relationship over the use of business-oriented space such as office, industrial, or retail-related.

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Month-to-Month Rental Agreement – A tenancy-at-will or a document that binds a landlord and tenant with no end date. Either party may cancel using the termination letter with at least 30 days’ notice.

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Rent-to-Own Lease Agreement – Contract used for a typical rental arrangement with the added course of action to purchase the residence.

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Roommate (Room Rental) Agreement – A contract amongst persons living in a shared home with each individual having a bedroom.

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Sublease Agreement – Allows a tenant to re-rent their space with the landlord’s permission. The tenant may not have the subtenant stay longer than their master lease.

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Required Disclosures (6)

Carbon Monoxide Detectors (Public Act 094-0741, Section 10) – A landlord must provide a carbon monoxide detector within 15 feet of where the tenant sleeps. Information regarding the detectors must be listed in the lease.

Concession Granted (765 ILCS 730) – Any concession for rent is required to be mentioned in the lease. When entered into the page, the header with the words “Concession Granted” should be at least one-half (1/2) inches in height on the document. Failure on behalf of the landlord to write this, if there is a concession, is considered a misdemeanor in the State of Illinois.

Lead-Based Paint Disclosure – Any residence constructed prior to 1978 is required to have this addendum attached to any agreement to inform the tenant(s) of this hazard.

Radon Disclosure (420 ILCS 46) – The landlord is not required to test for radon, but if they do, and the Landlord finds out that radon exists on the premises, they must relay the information to the tenant. This does not qualify for residences on the third (3rd) floor or higher in a residential complex. In addition, the IEMA-approved Radon Disclosure Pamphlet should be given to the tenant.

Smoke Detectors (425 ILCS 60/3(d)) – It is the responsibility of the landlord to provide smoke detectors throughout the premises. Although, during the lease term, the tenant will be responsible for their maintenance and functionality. Use the Carbon Monoxide and Smoke Detector Agreement to ensure a tenant maintains the detectors throughout the lease term.

Shared Meter (765 ILCS 740/5) – If a tenant must pay a portion of a master utility, the landlord must share the formula to calculate the tenant’s responsibility.

Security Deposits

Maximum Amount – No maximum.

Returning (765 ILCS 710) – The Landlord has 30 days to release the security deposit to the tenant. If there are deductions to the deposit, then the Landlord must list and send the deductions to the Tenant(s) within 30 days and release the remaining security deposit amount within 15 days after that (45 days total).

Interest-Bearing Account (765 ILCS 715) – If the Landlord owns more than twenty-five (25) rental units, they will be forced to place the security deposit in an interest-bearing account to be at least the interest rate in the State of Illinois on the previous December 31 of the most recent year.

When is Rent Due? (Grace Period)

There is a 5-day grace period for rent in Illinois. A late fee penalty cannot be issued until the sixth (6th) day. If rent is not paid, the landlord has the option to give a 5-day eviction notice to the tenant.

Late Fees

Maximum Penalty (770 ILCS 95/7.10(b)) – $20 or 20% of the rent amount, whichever is greater.

NSF Fee (810 ILCS 5/3-806) – $25

Right to Enter (Landlord)

There is no statutory law regarding entry into a tenant’s property. It is recommended to give written notice to the tenant prior to entry.

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