Illinois Lease Agreement Templates (6)
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.
Rental Lease 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).
A rental application is typically required from tenants to screen their eligibility before signing a lease agreement.
By Type (6)
Illinois Standard Residential Lease Agreement Template" width="200" height="260" />
Standard Lease Agreement
Facilitates a rental arrangement for a defined period.
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.
Commercial Lease Agreement
Allows a landlord to rent commercial/industrial property to a tenant.
Room Rental Agreement
Outlines the rights and obligations among individuals cohabiting in a rental property.
Sublease Agreement
Grants the subtenant the authority to rent either the entire or a portion of the leased property for a specified period.
Rent-to-Own Lease Agreement
Allows a part of the monthly rent to contribute toward the property's future purchase.
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, state law mandates that landlords and property managers need to provide certain documents along with Illinois lease agreements, such as the following disclosures [1] :
- Smoke and Carbon Monoxide Disclosure. Confirms there are smoke detectors [2] and carbon monoxide detectors [3] in the rental property when the tenant moves in.
- Radon Disclosure. Informs on the possible presence of radon in a rental unit [4] .
- Shared Utilities Notice. Determines the formula for calculating split utility costs and notes that utilities are separate from rent [5] .
- Rent Concessions Disclosure. Required disclosure of any rent concessions in the lease, such as free first or last month’s rent [6] .
- Disclosure of Lead-Based Hazards. Notes the possible presence of lead-based paint hazards in rental units built before 1978.
Security Deposit
- Maximum Amount: No limit
- Receipts: Not specified
- Interest Payments: Landlords owning more than 25 rental units must deposit security deposits in an interest-bearing account at the State of Illinois’ last-year interest rate as of December 31 [7] .
- Bank Account: Landlords who own 25 or more units must maintain security deposits in a distinct interest-bearing account for any rental agreements exceeding six months [7] .
- Returning Requirements: For properties with 5+ units, security deposits must be returned within 45 days after move-out. If deductions for damages are made, returns, along with an itemized statement of repairs and damages, must be issued within 30 days. [8] .
- Withholding Rules: The landlord can deduct from the security deposit for tenant-caused damages, providing an itemized repair and damage statement. [9] .
Rent Payments
- Laws: Rent must be paid by the first of each month, unless the lease states differently.
- Rent Control: Rent increases are permitted at almost any time with sufficient notice to tenants, but not during a fixed-term lease unless the lease specifically allows for changes.
- Late Fees andGrace Period: 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, provided it’s specified in the lease agreement prior to tenancy commencement. If rent is not paid, a landlord may give a 5-day notice to quit for non-payment of rent[10] .
- Withholding Rent: Tenants can pay for essential repairs and deduct the costs from their rent under certain conditions [11] .
Landlord Right of Entry
- Notice Requirements: The landlord is not required to give the tenant prior notice before entering the property. However, giving at least 24 hours’ notice is highly recommended.
- Keys, Locks, and Security: After a rental unit is vacated, the landlord must change or rekey its immediate access before a new tenant moves in [12] .
Property Repairs
- Landlord Responsibilities: Landlords are responsible for keeping properties livable, adhering to health and safety standards, making timely repairs, and maintaining critical services such as heat, water, and electricity.
- Tenant Repairs: Tenants should maintain a safe, clean environment, properly use fixtures, adhere to health and safety codes, avoid damaging the property, and notify the landlord of necessary repairs [13] .
- Abandonment: Landlords must mitigate damages if a lease is broken [14] but can’t claim abandonment based on a set absentee period. They must give a 10-day notice for unpaid utilities by tenants [15] .
Terminating a Lease
