Chicago Lease Agreement

Required Landlord Disclosures (8)

When creating your Chicago lease agreement, it’s crucial that you follow all national, state, and local laws when it comes to landlord disclosures. In Chicago, these include:

1. Lead Paint: Federal law requires the disclosure of known information regarding lead-based paint and lead-based paint hazards before selling or leasing most housing built before 1978.

2. Smoke Detectors: You must notify your tenants about smoke detector testing and maintenance (425 ILCS § 60/3(d)).

3. Carbon Monoxide Detectors: Similar to smoke detectors, you are required to disclose the status and maintenance of carbon monoxide detectors (430 ILCS § 135/10(c)).

4. Rent Concession: The Rent Concession Act requires you to clearly label any rent concessions granted to the tenant (765 ILCS § 730/3).

5. Shared Utilities: If tenants share utilities, you must specify in writing, outlining the formula used to allocate payments (765 ILCS § 740/5(a)).

6. Radon Hazards: You must disclose the existence of any radon hazards to tenants in all units above the ground level and below the third story (420 ILCS § 46/25).

7. Residential Landlord and Tenant Ordinance Summary: Cook County and the City of Chicago require that you attach a summary of the Residential Landlord and Tenant Ordinance to your Chicago lease agreement.

8. Bed Bug Brochure: Cook County and the City of Chicago also require you to provide an informational bed bug brochure with your lease, prepared by the Department of Public Health.

Security Deposit Regulations

Maximum Security Deposit Amount: While Illinois and the City of Chicago do not set a security deposit maximum, the Cook County Residential Tenant and Landlord Ordinance states that a Cook County landlord cannot demand or receive a security deposit in excess of 1.5 months’ rent.

Receipt of Deposit: Cook County and the City of Chicago require that you give your tenants a receipt for the amount of the security deposit and the date it was received (Cook County Residential Tenant and Landlord Ordinance).

Interest: If your property contains more than 25 units, you must pay interest on your tenants’ security deposits by keeping them in a separate, interest-bearing account. The interest rate should be equal to the interest paid by the largest bank in the state (765 ILCS § 715/1).

Deduction Tracking: If any deductions are made from the security deposit (to cover cleaning or necessary repairs, for instance), you must give your tenant an itemized list of deductions, with estimated or actual costs, within 30 days of move-out (765 ILCS § 710/1(a)).

Returning a Tenant’s Security Deposit: You have 30 days to return a tenant’s security deposit. However, if you make any deductions to the security deposit for repairs or cleaning, you have 30 days to provide an itemized list of deductions to your tenant, and 15 days after that to return the remainder of the deposit (765 ILCS § 710/1(a)).

Landlord’s Access to Property

Advance Notice: In Cook County, landlords are required to provide 2 days’ notice and may only enter the property between 8:00 a.m. and 8:00 p.m., except in emergencies (MUN. CODE CH. 5-12-050).

Immediate Access: In the event of an emergency, a landlord may enter a property at any time, with or without the tenant present, and without providing prior notice.

Landlord Harassment: Landlords who continue to enter a property without a valid reason may be subject to laws prohibiting landlord harassment. In Cook County, this could enable the tenant not only to end their lease early but also to recover up to 1 month’s rent (MUN. CODE CH. 5-12-050).

Rent Payment Laws

Grace Period: Cook County and the City of Chicago offer tenants a 2-day grace period for rent payments. Landlords cannot charge late fees until rent is 3 days late in this case.

Late Rent Fees: The City of Chicago permits landlords to charge a late fee of $10 per month for rent under $500, plus 5% of any rent amount exceeding $500.00.

Tenant’s Right to Withhold Rent: If something in the unit requires repair (per the law or based on your Chicago lease agreement), a tenant may take action if the repair cost is less than $500 or one-half of their monthly rent, whichever is greater. They must notify you of the necessary repair in writing, and then you have 14 days to take action. If the repair is not made in time, the tenant may repair it on their own, give you the receipt, and deduct the amount from a future rent payment (765 ILCS § 742/5).

Breach of Rental Agreement

Missed Rent Payment: If the rent is still late after the 2-day grace period, landlords may send a written 5-day notice to pay or vacate (735 ILCS § 5/9-209).

Lease Violation: Landlords are required to provide a 10-day written Notice to Quit, and in some cases, must allow the tenant to fix the violation (735 ILCS § 5/9-210).

Self-Help Evictions: Illinois landlords may not evict a tenant themselves without the court’s assistance (765 ILCS § 735).

Lease Abandonment: Tenants who abandon a lease early without valid reasoning may be responsible for the remainder of the lease.

Ending a Lease

Month-to-Month: Illinois landlords must provide tenants with 30 days’ notice to end a month-to-month lease (735 ILCS § 5/9-207).

Fixed-Term: Illinois tenants may legally terminate their fixed-term lease early under certain circumstances, including entering active duty military service, experiencing uninhabitable living conditions, landlord harassment, or domestic violence (765 ILCS § 705).

Property Abandonment: The City of Chicago requires landlords to store abandoned property on-site for 7 days after the tenant leaves (MUN. CODE CH. 5-12-130 (g)).

Renewing a Lease

Required Renewals: Illinois landlords do not have to allow their tenants to renew their lease at the end of its term.

Required Notice: Illinois landlords are required to provide tenants with written notice if they don’t plan to renew their lease. For month-to-month leases, 30 days’ notice is required; for annual leases, 60 days’ notice is required (735 ILCS § 5/9-205).

Rent Control & Stabilization

Not allowed; in fact, Illinois passed a law in 1997 that prevents rent control (Rent Control Preemption Act).