RESIDENTIAL LEASE LATE FEE ADDENDUM

(Illinois – Court-Ready Template)

[// GUIDANCE: This Addendum is intended for attachment to an existing Illinois residential lease. Confirm that the underlying lease permits addenda and that all signatories to the lease sign this Addendum.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

1.1 Title

Residential Lease Late Fee Addendum (“Addendum”)

1.2 Parties

This Addendum is entered into by and between:
(a) [LANDLORD LEGAL NAME], a [STATE] [TYPE OF ENTITY] (“Landlord”); and
(b) [TENANT LEGAL NAME(S)] (collectively, “Tenant”).

1.3 Recitals

A. Landlord and Tenant are parties to that certain Residential Lease Agreement dated [DATE] (the “Lease”) covering the premises known as [PREMISES ADDRESS] (the “Premises”).
B. The Lease is in full force and effect, and the parties desire to supplement the Lease to address late-payment fees in accordance with applicable Illinois law.
C. In consideration of the mutual promises herein, the parties agree as follows.

1.4 Effective Date

This Addendum shall become effective on [EFFECTIVE DATE] (“Effective Date”).

1.5 Governing Jurisdiction

This Addendum is governed by the laws of the State of Illinois without regard to conflict-of-laws principles.

2. DEFINITIONS

“Additional Rent” – Any monetary obligation (other than Base Rent) owed by Tenant under the Lease or this Addendum, including Late Fees.

“Grace Period” – The statutory and/or contractual period beginning the day after rent is due during which no Late Fee may be assessed, as specified in Section 3.2.

“Late Fee” – The fee assessed under Section 3.3 for Tenant’s failure to pay Base Rent in full within the Grace Period.

“RLTO Property” – A residential rental unit located within the City of Chicago and subject to the Chicago Residential Landlord and Tenant Ordinance.

3. OPERATIVE PROVISIONS

3.1 Incorporation

This Addendum is incorporated into and made part of the Lease. All capitalized terms not defined herein have the meanings set forth in the Lease.

3.2 Grace Period

Tenant shall have a five (5)-day Grace Period after the due date specified in the Lease to remit full payment of Base Rent without incurring a Late Fee.

[// GUIDANCE: Illinois requires a 5-day demand period before filing an eviction action for non-payment; many municipalities also prohibit late fees before day 6. Retain or lengthen as local rules demand.]

3.3 Late Fee Calculation

(a) Standard (Non-RLTO) Properties
i. Late Fee = [PERCENT]% of the monthly Base Rent or $[FLAT AMOUNT], whichever is less, provided such amount is reasonable under Illinois law and does not exceed statutory limits.

(b) RLTO Properties
i. If the Premises is an RLTO Property, Late Fees shall not exceed:
(1) Ten Dollars ($10.00) for the first Five Hundred Dollars ($500.00) of monthly rent plus
(2) Five percent (5%) of any rent amount in excess of Five Hundred Dollars ($500.00).

(c) Aggregate Cap
Under no circumstances will cumulative Late Fees in any month exceed the greater of (i) the limits in Section 3.3(a) or (b), as applicable, or (ii) any lower limit mandated by applicable law.

3.4 Notice of Late Fee

Landlord shall provide Tenant written notice of any Late Fee assessment. Failure to give notice on one occasion shall not constitute waiver of Landlord’s right to collect Late Fees for that or subsequent periods.

3.5 Application of Payments

Unless prohibited by law, payments shall be applied first to outstanding Late Fees and other Additional Rent, then to Base Rent.

3.6 Treatment as Additional Rent

Late Fees constitute Additional Rent. Non-payment constitutes a monetary default under the Lease.

3.7 Savings Clause

If a court of competent jurisdiction determines that any Late Fee assessed exceeds the amount permissible by law, the excess portion shall be reduced to the maximum lawful amount and collected accordingly.

4. REPRESENTATIONS & WARRANTIES

4.1 Landlord represents that this Addendum complies with all applicable Illinois statutes, administrative regulations, and local ordinances as of the Effective Date.

4.2 Tenant represents that Tenant has read and understands this Addendum, had the opportunity to consult legal counsel, and acknowledges that Late Fees may be lawfully assessed pursuant hereto.

4.3 The representations and warranties in this Section survive termination of the Lease to the extent necessary to enforce accrued obligations.

5. COVENANTS & RESTRICTIONS

5.1 Tenant covenants to pay Base Rent and any Late Fees timely and in the manner prescribed.

5.2 Landlord covenants to assess Late Fees only in compliance with Section 3 and applicable law.

5.3 Both parties agree to provide all notices and to cure defaults within the periods provided in the Lease and this Addendum.

6. DEFAULT & REMEDIES

6.1 Event of Default – Tenant’s failure to pay any Late Fee within [NUMBER] days after written notice constitutes a separate Event of Default.

6.2 Landlord Remedies
a. Treat unpaid Late Fees as unpaid rent and pursue all remedies available for non-payment of rent, including possession.
b. Recover reasonable attorneys’ fees and court costs to the extent permitted by law and the Lease.

6.3 Cure – If Tenant cures monetary default by paying all outstanding sums (including Late Fees) prior to entry of judgment, Landlord shall discontinue enforcement actions except to recover costs already incurred.

7. RISK ALLOCATION

7.1 Indemnification – Not applicable by mutual intent.

7.2 Limitation of Liability – Neither party seeks to limit liability beyond statutory limits. Nothing herein shall be construed to waive any right or remedy that cannot legally be waived.

7.3 Force Majeure – Late Fees are not excused by Force Majeure unless expressly required by statute or governmental order.

8. DISPUTE RESOLUTION

8.1 Governing Law – Illinois substantive law governs.

8.2 Forum Selection – Exclusive venue lies in the state housing or forcible entry and detainer court having jurisdiction over the Premises.

8.3 Arbitration – The parties expressly exclude arbitration.

8.4 Jury Rights – Each party retains its constitutional right to a trial by jury.

8.5 Injunctive Relief – Landlord’s right to seek possession and related relief is preserved.

9. GENERAL PROVISIONS

9.1 Amendment & Waiver – No modification of this Addendum is binding unless in a signed writing. Waiver of any breach is not waiver of subsequent breaches.

9.2 Assignment – This Addendum binds and benefits successors and permitted assigns to the same extent as the Lease.

9.3 Severability – If any provision is held invalid, the remainder shall remain in effect, and the offending provision shall be reformed to the minimum extent necessary to be enforceable.

9.4 Integration – This Addendum, together with the Lease, comprises the entire agreement regarding Late Fees and supersedes all prior discussions.

9.5 Electronic Signatures – Electronic signatures and counterparts are valid and binding to the fullest extent permitted by law.

10. EXECUTION BLOCK

IN WITNESS WHEREOF, the parties have executed this Addendum as of the Effective Date.

[Optional Notary Block – attach if required by local practice]

[// GUIDANCE:
1. Confirm whether the property is subject to municipal ordinances (e.g., Chicago RLTO, suburban crime-free housing, Cook County RTLO) and adjust caps accordingly.
2. Ensure consistency between this Addendum and the main Lease (e.g., default notices, attorney-fee clauses).
3. For subsidized or tax-credit properties, confirm program-specific late-fee limits.
4. Retain signed originals with the Lease for evidentiary purposes in any eviction action.]