The Illinois lease agreement is a prevalent contract performed during the transfer of rights related to the use of a real estate property (apartment, condo, house, etc.). Participants, known as the lessor and lessee, must come to terms on how the arrangement will occur and what provisions will be included. This document should determine the monthly rental cost, the sum of the preliminary security deposit, and any stipulations that serve the needs of each party. Once all the info has been inserted into the form, the agreement should then be finalized by executing the necessary signatures within the indicated sections.
Rental Application – Paperwork provided to those seeking the rental of a property for lease. the form is to be filled with information pertinent to identity and eligibility of the applicant for review by the landlord of the premises.
Illinois Association of Realtors Residential Lease Agreement – A document to be utilized in place of the standard residential agreement, the form is typically used by professional Realtors to record a leasing transaction. This form is not compatible for use concerning rental property situated within the city of Chicago.
Commercial Lease Agreement – For individuals looking to rent a property to a business entity for the purpose of establishing the company’s trade location.
Lease to Own Agreement – This type of contract operates like your typical lease/rental agreement, but also provides the added option of purchasing the real estate at any given time during the term of the tenancy.
Month-to-Month Lease – Can be ended at any point in time on the condition that thirty (30) days’ notice is supplied by the terminating party (735 ILCS § 5/9-207(b)).
Roommate Agreement – Introduced when a resident of a particular property would like to rent out a room/portion of the dwelling to another party.
Standard Lease Agreement – Documents pertinent information included in a standard one-year residential rental arrangement.
Sublease Agreement – Functions as a secondary agreement that can be utilized when a current tenant would like to re-rent the property to sub-tenant for a fixed period of time (this is only possible if the original lease authorizes this action).
Review Illinois’s Landlord and Tenant Act (765 ILCS § 705) for specific information concerning the lessor/lessee privileges and duties that each party should know prior to entering into a rental agreement. The Illinois Attorney General also offers a Landlord/Tenant Rights & Laws Fact Sheet that contains valuable information regarding the state’s property laws.
All of the following disclosures are imposed by the state. Depending on the county in which you reside, there may be additional ordinances that require your compliance.
Carbon Monoxide (430 ILCS § 135/10(c)) – Illinois landlords are liable to inform tenants (in writing) of any testing/maintenance procedures pertaining to the carbon monoxide detectors installed within the premises.
Lead-Based Paint (42 U.S. Code § 4852d ) – As stated in Title 42 of the federal law, all landlords looking to rent a residential property that was assembled before 1978 must first present a lead disclosure to the interested party prior to them occupying the premises. This requirement consists of an educational pamphlet informing tenants of the risks associated with the toxic substance, as well as any data of actual lead hazards that may be found within the boundaries of the property.
Radon (420 ILCS § 46/25) – Under Chapter 420 (Nuclear Safety), lessors are compelled by law to disclose any known information related to the presence of radon contained within the confines of the property, corresponding with the Illinois Radon Awareness Act.
Rent Concession (765 ILCS § 730) – A “rent concession” is an incentive used to entice prospective tenants to rent a property. Any concessions that the landlord agrees to give to the tenant must be written within the terms of the lease agreement and followed by “Concession Granted”.
Smoke Detector (425 ILCS § 60/3(d)) – In accordance with Illinois’s Smoke Detector Act, lessors are obligated to supply lessees with a written disclosure outlining the property’s servicing policy regarding smoke alarms.
Utility Payment (765 ILCS § 740) – The landlord of an apartment or condo that contains shared utility services that are divided amongst neighboring tenants must disclose any formulas and/or invoices that are related to the utility usage of the building, according to the Tenant Utility Payment Disclosure Act.
Rent should be payable to the landlord on the time and location pronounced within the lease agreement. A landlord may not charge a late fee until five (5) days after the due date (770 ILCS § 95/7.10(a)).
Illinois landlords may impose a charge of $20 or 20% of the monthly rent payment (whichever is the higher amount) if the tenant fails to pay the rental fee on time and exceeds the five (5) day grace period (770 ILCS § 95/7.10(c)). It should be known that no fee may be charged if the penalty wasn’t provided within the written agreement prior to the tenancy.
If a lessee provides a lessor with a dishonored check, the lessor is entitled to compensation for the amount listed on the check and any fees charged by the financial institution. The lessee has thirty (30) days from the time of receiving a notice to reimburse the lessor, otherwise, they may sue for damages and the lessee may have to pay additional fees (720 ILCS § 5/17-1(E)).
On average, the typical security deposit ranges from one to two months’ rent. Some states set a fixed amount that landlords are not allowed to exceed, Illinois does not enforce a limitation on the amount of a security deposit. (This should be coordinated before entering into an agreement.)
The state instructs landlords that they must legally return a tenant’s security deposit within forty-five (45) days of them relinquishing the property (765 ILCS § 710/1(a)).
There is no law that states a minimum notice of entry. It is advised that a reasonable amount of time (at least 24 hours) to alert the tenant prior to accessing the property be stipulated within the terms of the contract.
