Need a Property Rentals Contract in Illinois? AroundWire Can Help

In Illinois, property rental contracts—covering residential, commercial, or government leases—are governed by both state statutes and local ordinances, notably the Illinois Landlord and Tenant Act and, in some municipalities, the Chicago Residential Landlord and Tenant Ordinance (RLTO). Typical contracts specify lease terms, use restrictions, security deposit handling (with strict requirements on deposit return and interest payments, especially in Chicago), and maintenance responsibilities. State law mandates disclosures, such as the presence of lead-based paint in pre-1978 properties and, in some cases, radon hazards. Commercial leases often require lessees to carry general liability insurance, naming the property owner as an additional insured, and may also stipulate property or business interruption coverage. Risk allocation through indemnification clauses is common. Payment terms, including rent due dates, late fees (subject to statutory limits), and escalation clauses, are clearly defined. Licensing requirements apply to property managers; they must hold a valid Illinois real estate broker’s or managing broker’s license. Contracts typically include remedies for default, with dispute resolution often handled through state courts, though mediation or arbitration may be specified in larger or public-sector agreements. Local contracting norms emphasize compliance with fair housing laws and municipal codes, and public entities may impose additional procurement and non-discrimination requirements.