Illinois Residential Lease Agreement

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An Illinois residential lease agreement (“rental agreement”) is a legal contract between a landlord overseeing a residential property and a tenant who wishes to rent it. A residential lease may, on or before move-in, additionally require a security deposit from the tenant as assurance against future property damage.

Illinois Residential Lease Agreement Disclosures

These disclosures are required for all residential lease agreements in Illinois:

Radon Hazard Disclosure

Applicable to any Illinois rental unit located below the third floor, with known dangerous radon levels.

Illinois landlords must provide all new tenants with a state-approved pamphlet warning about the dangers of radon exposure, plus copies of any records or reports which might indicate a radon hazard on the premises. [1]

This is the required text of a radon disclosure in Illinois: [4]

DISCLOSURE OF INFORMATION ON RADON HAZARDS TO TENANTS

Radon Warning Statement

Each tenant in this residence or dwelling unit is notified that the property may present exposure to levels of indoor radon gas that may place the occupants at risk of developing radon-induced lung cancer. Radon, a Class-A human carcinogen, is the leading cause of death in private homes and the leading cause of lung cancer in nonsmokers. The lessor of any residence is required to provide each tenant with any information on radon test results of the dwelling unit that present a radon hazard to the tenant.

The Illinois Emergency Management Agency (IEMA) strongly recommends that ALL rental properties have a radon test performed and radon hazards mitigated if elevated levels are found in a dwelling unit or a routinely occupied area of a multiple family residence. Elevated radon concentrations can easily be reduced by a radon contractor.

Dwelling Unit Address:………………………..

Lessor’s Disclosure (initial each of the following that apply)

…. Lessor has no knowledge of elevated radon concentrations (or records or reports pertaining to elevated radon concentrations) in the dwelling unit.

…. Radon concentrations (at or above the IEMA recommended Radon Action Level 4.0 pCi/L) are known to be present within the dwelling unit.

…. Lessor has provided the tenant with copies of all available records and reports, if any, pertaining to radon concentrations within the dwelling unit.

Tenant’s Acknowledgment (initial each of the following that apply)

…. Tenant has received copies of all information listed above.

…. Tenant has received the pamphlet “Radon Guide for Tenants”.

Certification of Accuracy

The following parties have reviewed the information above and each party certifies, to the best of his or her knowledge, that the information he or she provided is true and accurate.

Lessor……………………….. Date…………

Tenant……………………….. Date…………

Carbon Monoxide Detector Disclosure

Applicable to all Illinois rentals.

Illinois landlords must comply with the Carbon Monoxide Detector Act by providing tenants with information about a property’s carbon monoxide detector testing and maintenance history.

Smoke Detector Disclosure

Applicable to all Illinois rentals.

Illinois landlords must comply with the Smoke Detector Act by providing tenants with information about a property’s smoke detector testing and maintenance. Tenants have an obligation to do day-to-day maintenance on a smoke detector themselves (like battery replacement) and must inform the landlord in writing if there’s an issue that may require replacement.

Shared Utility Arrangements Disclosure

Applicable to any Illinois rental with a shared utility meter between tenants or common areas.

Illinois requires a special disclosure under the Tenant Utility Payment Disclosure Act when a property has a submetering system or otherwise doesn’t bill individually for utilities. The disclosure must be in the lease and include the following [2]

• All buildings, units, or common areas that share the tenant’s utility metering
• A breakdown of the system for apportioning utility charges to tenants
• Copies of the individual unit’s utility bill for the past 12 months
• Any available rent reductions offered which compensate for shared utility usage

The total amount charged to shared units may not exceed the total utility charges for the entire building, and the landlord must also, upon request, provide a copy of the utility bill for any payment made by the tenant.

This is an example of a shared utilities clause: [3]

SHARED UTILITIES. This dwelling unit shares a utility meter with the following parties:
[ ] Common Area(s):________________
[ ] Unit(s):__________________
[ ] Other:____________________

This lease uses the following method for calculating utility charges between Tenant(s):
[ ] Home Square Footage
[ ] Number of Tenants
[ ] Even Split Between Tenants
[ ] Other:_______________________________

A rent reduction of $______ will be enforced in accordance with this shared utility arrangement. Copies of utility bills for the rental unit for the past 12 months are available upon request.

Concession Granted

Applicable to any Illinois rental unit which grants a concession for rent.

Illinois landlords must, in writing, disclose any concession for rent that they grant. The phrase “Concession Granted” must be written on the lease in type that is at least one-half inch in height, together with a statement detailing the value and terms of the concession. Illinois law defines a rent concession as:

• Any rent credit, or rebate after payment, agreed between the parties to a lease
• Any agreement for the tenant to occupy the rental property rent free or for a rent less than the average rent, during a period other than the term created by the lease
• Any other valuable thing, right or privilege which places the stated rent out of step with the monies actually collected

Property maintenance and improvements are not a rent concession, nor is a waiver of lease terms other than ones which relate to rent payment. A landlord who does not disclose a rent concession in writing may be prosecuted for a Class A misdemeanor.

Lead-Based Paint Disclosure

Applicable to all rental property built before 1978.

For any property built before 1978, federal law requires that an Illinois residential lease must contain a lead-based paint disclosure. This requires landlords to do the following:

• Fill out and attach this lead-based paint disclosure form to the lease agreement.
• Provide the tenant with an Environmental Protection Agency (EPA) approved pamphlet about the dangers of lead-based paint.
• Provide any additional records or reports about the presence or hazards of lead-based paint in the unit. For multi-unit buildings with common areas, this includes information from building-wide evaluations.

Optional Disclosures and Addenda (Recommended)

The following lease agreement disclosures and addenda are not required by Illinois law in residential lease agreements, but assist with tenant management and help limit landlord liability.

Some Illinois cities have more comprehensive rules than the statewide standard. Chicago, for example, requires that landlords provide tenants with a summary of local housing laws. Always check local codes and regulations.

Consequences of Not Including Mandatory Disclosures

Mandatory disclosures outline important health, safety, and property information for both landlord and tenant safety. A landlord who fails to provide federally or state-mandated disclosures could face legal consequences or monetary penalties, either from a tenant lawsuit or from state officials.

An Illinois landlord who does not disclose a rent concession may be guilty of a Class A misdemeanor.

Failure to comply with the federal lead-based paint hazard disclosure risks fines of tens of thousands of dollars per violation.

Sources

(a) At the time of a prospective tenant’s application to lease a dwelling unit, before a lease is entered into, or at any time during the leasing period, upon request, the lessor shall provide the prospective tenant or tenant of a dwelling unit with:

(1) the Illinois Emergency Management Agency pamphlet entitled “Radon Guide for Tenants” or an equivalent pamphlet approved for use by the Illinois Emergency Management Agency; (2) copies of any records or reports pertaining to radon concentrations within the dwelling unit that indicate a radon hazard to the tenant, as provided in subsection (c); and (3) the Disclosure of Information on Radon Hazards to Tenants form, as set forth in subsection (f). (b) At the commencement of the agreed leasing period, a tenant shall have 90 days to conduct his or her own radon test of the dwelling unit. If the tenant chooses to have a radon test performed, the tenant shall provide the lessor with copies of the results, including any records or reports pertaining to radon concentrations, within 10 days after receiving the results of the radon test. If the tenant’s radon test provides a result in excess of the Illinois Emergency Management Agency’s recommended Radon Action Level and the lessor has elected to not mitigated the radon hazard, the tenant may terminate the lease.

…(a) No landlord shall rent or cause to be rented any unit in which the tenant is responsible by agreement, implication, or otherwise for direct payment for utility service to the utility company and in which the utility company billing for that service includes any service to common areas of the building or other units or areas used or occupied by persons other than the individual tenant and those occupying the unit with the tenant on the utility account, unless, before offering an initial lease or a renewal lease, accepting a security deposit, or otherwise entering into an agreement with the prospective tenant to let the premises:

(1) The landlord provides the prospective tenant with a written statement setting forth the specific areas of the building and any appurtenances that are served by the meter that will be in the tenant’s name and the nature of the utility uses of those areas…

(2) The landlord provides the prospective tenant with copies of the utility bills for the unit for the previous 12 months, unless waived by the tenant in writing;
…
4) The landlord sets forth in writing the amount of the proposed rent reduction, if any, that is offered to compensate for the tenant’s payments for utility usage outside of the tenant’s unit…

…(a) The total of payments under the formula for the building as a whole for a billing period may not exceed the sum demanded by the public utility. .. The landlord shall also make available to the tenant upon request a copy of the public utility bill for any billing period for which payment is demanded..

The following Disclosure of Information on Radon Hazards to Tenants shall be provided to each tenant of a dwelling unit:

“DISCLOSURE OF INFORMATION ON RADON HAZARDS TO TENANTS

Radon Warning Statement

Each tenant in this residence or dwelling unit is notified that the property may present exposure to levels of indoor radon gas that may place the occupants at risk of developing radon-induced lung cancer. Radon, a Class-A human carcinogen, is the leading cause of death in private homes and the leading cause of lung cancer in nonsmokers. The lessor of any residence is required to provide each tenant with any information on radon test results of the dwelling unit that present a radon hazard to the tenant.

The Illinois Emergency Management Agency (IEMA) strongly recommends that ALL rental properties have a radon test performed and radon hazards mitigated if elevated levels are found in a dwelling unit or a routinely occupied area of a multiple family residence. Elevated radon concentrations can easily be reduced by a radon contractor.

Dwelling Unit Address:………………………..

Lessor’s Disclosure (initial each of the following that apply)

…. Lessor has no knowledge of elevated radon concentrations (or records or reports pertaining to elevated radon concentrations) in the dwelling unit.

…. Radon concentrations (at or above the IEMA recommended Radon Action Level 4.0 pCi/L) are known to be present within the dwelling unit.

…. Lessor has provided the tenant with copies of all available records and reports, if any, pertaining to radon concentrations within the dwelling unit.

Tenant’s Acknowledgment (initial each of the following that apply)

…. Tenant has received copies of all information listed above.

…. Tenant has received the pamphlet “Radon Guide for Tenants”.

Certification of Accuracy

The following parties have reviewed the information above and each party certifies, to the best of his or her knowledge, that the information he or she provided is true and accurate.

Frequently Asked Questions

How Long Can a Residential Lease Be in Illinois? Depending on circumstances, in Illinois it’s usually possible to have a lease of any length of time, as long as the length of the lease term is specific and agreed in writing by the landlord and tenant. Oral leases can almost never be for a term of more than one year. Read more » Is a Contract to Lease Binding in Illinois? Yes, a contract to lease is legally binding in Illinois. To be valid, a contract to lease may have to be written, especially for a fixed term over one year. Oral leases may be valid in some cases (especially when both parties later behave as though there’s an enforceable oral lease), but often have strict limitations on enforceability for things like length of the lease term. Read more » Do Lease Agreements Need to Be Notarized in Illinois? No, lease agreements do not need to be notarized in Illinois. A notary helps establish the identity of the people signing the lease, if there’s a claim of fraud, but a notary isn’t necessary for a lease to be valid. Read more » Can a Lease Automatically Renew in Illinois? Yes, a lease can automatically renew in Illinois. Most rental agreements will automatically renew when the initial tenancy period is over. Past this point, the lease becomes a month-to-month rental agreement, with the same basic terms and conditions otherwise as the original lease. In some cases, such as if rent is being paid weekly, the lease may become a week-to-week lease. Read more »