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Illinois Sublease Agreement Template

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Illinois Sublease Agreement Template

Updated March 01, 2024

An Illinois sublease agreement serves as a contract in which a sub-lessee and sub-lessor establish a sublet arrangement, including each party’s responsibilities. The tenant/sub-lessor under the new agreement will act as the landlord, thus guaranteeing the sub-lessee retains certain property rights as a sub-tenant for the duration of the original lease.

Right to Sublet

Illinois state law does not specifically address a tenant’s ability to sublet. The lease between a landlord and tenant will determine whether or not the property may be sublet, although the landlord may not unreasonably deny a sub-lessee applicant.

In Chicago, however, tenants have an absolute right to sublet, regardless of the lease’s terms, provided that the sublease is “reasonable” in nature.[1]

If the lease is unclear or is silent on the subject of subleasing, getting the landlord’s permission is recommended. When a landlord’s permission to sublease is necessary, a Landlord Consent Form may be used to obtain written approval.

Short-Term (Lodgings) Tax

Statewide, Illinois charges a hotel operator’s tax on rentals of less than 30 days. Each county and city may impose additional taxes, permit requirements, or fees.

Illinois short-term rental taxes:

  • 6% state hotel tax[2]
  • Additional taxes levied at the city and county level

Some localities prohibit short-term rentals altogether. For example, Lake County does not allow property rentals of less than one month in residential zones.[3]

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  1. Chicago Municipal Code 5-12-120
  2. Illinois Department of Revenue
  3. Lake County Planning, Building, and Development Dept.