RESIDENTIAL LEASE AGREEMENT
(State of Illinois)
[// GUIDANCE: This template is designed for use by Illinois‐based landlords and tenants in residential tenancies. All bracketed fields must be completed or modified to reflect the negotiated transaction and the characteristics of the Premises. Remove all guidance comments prior to execution.]
TABLE OF CONTENTS
- DOCUMENT HEADER
- DEFINITIONS
- OPERATIVE PROVISIONS
3.1 Lease of Premises
3.2 Term & Possession
3.3 Rent & Additional Charges
3.4 Security Deposit
3.5 Utilities & Services
3.6 Use & Occupancy
3.7 Maintenance, Repairs & Habitability
3.8 Alterations
3.9 Entry & Inspection - REPRESENTATIONS & WARRANTIES
- COVENANTS & RESTRICTIONS
- DEFAULT & REMEDIES
- RISK ALLOCATION
- DISPUTE RESOLUTION
- GENERAL PROVISIONS
- EXECUTION BLOCK
1. DOCUMENT HEADER
This Residential Lease Agreement (this “Agreement”) is entered into on this [EFFECTIVE DATE] (the “Effective Date”) by and between [LANDLORD LEGAL NAME], a [STATE] [ENTITY TYPE / INDIVIDUAL] (“Landlord”), and [TENANT FULL LEGAL NAME] (“Tenant”). Landlord and Tenant are sometimes referred to individually as a “Party” and collectively as the “Parties.”
Recitals
A. Landlord is the fee simple owner of certain residential real property and improvements located at [PREMISES ADDRESS] (the “Premises”).
B. Tenant desires to lease the Premises from Landlord, and Landlord desires to lease the Premises to Tenant, upon the terms and conditions set forth herein and for the consideration contained herein.
NOW, THEREFORE, in consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
2. DEFINITIONS
For purposes of this Agreement, the following capitalized terms shall have the meanings set forth below. Terms used in the singular include the plural and vice-versa as the context may require.
“Additional Rent” – Any monetary obligation of Tenant other than Base Rent, including but not limited to late fees, utilities, and repair costs reimbursable by Tenant.
“Base Rent” – The monthly rent payable by Tenant pursuant to Section 3.3(a).
“Business Day” – Any day other than Saturday, Sunday, or a federal or Illinois state holiday.
“Commencement Date” – The first day of the Term, as defined in Section 3.2(a).
“Event of Default” – Any occurrence described in Section 6.1.
“Habitability Standards” – The minimum conditions required under applicable Illinois building, health, and safety codes, together with the judicially recognized implied warranty of habitability.
“Security Deposit” – The monetary deposit described in Section 3.4 securing Tenant’s performance.
“Term” – The fixed period during which Tenant is entitled to occupy the Premises, as provided in Section 3.2.
3. OPERATIVE PROVISIONS
3.1 Lease of Premises
(a) Landlord hereby leases the Premises to Tenant, and Tenant hereby leases the same from Landlord, subject to the terms and conditions of this Agreement.
(b) The Premises shall be used solely for private residential purposes by Tenant and [MAXIMUM OCCUPANTS] lawful occupants approved by Landlord.
3.2 Term & Possession
(a) Commencement; Expiration. The Term shall commence on [COMMENCEMENT DATE] (the “Commencement Date”) and expire at 11:59 p.m. on [EXPIRATION DATE], unless sooner terminated in accordance with this Agreement.
(b) Delivery of Possession. Landlord shall deliver possession of the Premises to Tenant in compliance with Habitability Standards on the Commencement Date.
[// GUIDANCE: If early occupancy or a holdover arrangement is contemplated, insert subsections addressing such scenarios.]
3.3 Rent & Additional Charges
(a) Base Rent. Tenant shall pay to Landlord monthly Base Rent in the amount of $[AMOUNT] on or before the [DAY] day of each calendar month, without demand, deduction, or set-off, at [PAYMENT ADDRESS] or by other means approved by Landlord in writing.
(b) Late Charge. If any Base Rent installment is not received within [5] days after the due date, Tenant shall pay a late fee equal to [THE GREATER OF $[AMOUNT] OR ___% OF THE DELINQUENT SUM].
(c) Returned Payments. A fee of $[AMOUNT] shall be assessed for each dishonored payment.
(d) Additional Rent. Any sums payable by Tenant under this Agreement other than Base Rent shall constitute Additional Rent, payable on demand unless otherwise specified.
3.4 Security Deposit
(a) Deposit Amount. Upon execution of this Agreement, Tenant shall deposit with Landlord the sum of $[AMOUNT] (the “Security Deposit”) as security for Tenant’s faithful performance hereunder.
(b) Statutory Compliance. Landlord shall hold and, where required by law, place the Security Deposit in an interest-bearing account and return or account for the Security Deposit in accordance with Illinois Security Deposit Return Act (currently codified at 765 ILCS 710/) and, if applicable, the Security Deposit Interest Act (765 ILCS 715/).
(c) Limit of Liability. Subject to Section 7.2, Tenant acknowledges that, except for claims arising from Landlord’s gross negligence or willful misconduct, Landlord’s aggregate monetary liability to Tenant under this Agreement shall not exceed the un-applied portion of the Security Deposit.
(d) Return. Within the time required by applicable Illinois law (currently forty-five (45) days following surrender), Landlord shall return the unused portion of the Security Deposit with any required interest, less lawful deductions, together with an itemized statement of any such deductions.
(e) Prohibition on Deposit Application. Tenant shall not apply the Security Deposit to any rental installment or other charge without Landlord’s prior written consent.
[// GUIDANCE: Illinois municipal ordinances (e.g., Chicago RLTO) may impose additional obligations; insert if Premises is within an applicable municipality.]
3.5 Utilities & Services
Tenant shall be responsible for and shall timely pay all utilities and services serving the Premises not expressly assumed by Landlord herein, including without limitation [LIST OF UTILITIES]. Landlord shall not be liable for any interruption or failure of such utilities unless caused by Landlord’s gross negligence or willful misconduct.
3.6 Use & Occupancy
(a) Permitted Use. Residential occupancy only; no home business or commercial activity without Landlord’s prior written consent.
(b) Prohibited Conduct. Tenant shall not: (i) violate any law; (ii) create a nuisance; (iii) store hazardous materials; or (iv) engage in any activity that increases Landlord’s insurance premiums.
(c) Smoking & Cannabis. [DISCLOSE SMOKING POLICY]. Possession or consumption of cannabis shall comply with Illinois Cannabis Regulation and Tax Act and local ordinances.
3.7 Maintenance, Repairs & Habitability
(a) Landlord Obligations. Landlord shall keep the Premises in compliance with Habitability Standards, and shall, at its expense, repair and maintain the roof, structural components, major systems, and any common areas.
(b) Tenant Obligations. Tenant shall maintain the Premises in a clean, sanitary, and safe condition, promptly notify Landlord of any defective condition, and be responsible for repair of damage caused by Tenant, occupants, or guests beyond ordinary wear and tear.
(c) Right to Repair and Deduct. If Landlord fails to make repairs affecting habitability within a reasonable time after written notice (not to be less than 14 days unless emergency conditions exist), Tenant may exercise rights permitted under the Illinois Residential Tenants’ Right to Repair Act, provided Tenant strictly complies with statutory procedures.
(d) Smoke & Carbon Monoxide Detectors. Tenant acknowledges that required detectors are installed and operational on the Commencement Date and agrees to test and replace batteries as needed.
3.8 Alterations
Tenant shall not make any alterations, improvements, or additions to the Premises without Landlord’s prior written consent, which consent may be withheld in Landlord’s reasonable discretion. All approved alterations shall become the property of Landlord upon installation unless otherwise agreed in writing. Tenant shall indemnify Landlord from any mechanic’s or materialman’s liens arising from Tenant’s work.
3.9 Entry & Inspection
Landlord or its agents may enter the Premises upon at least [24] hours’ prior notice (or without notice in emergencies) to inspect, make repairs, supply services, or show the Premises to prospective purchasers or tenants, all in accordance with Illinois law.
4. REPRESENTATIONS & WARRANTIES
4.1 Mutual Authority. Each Party represents that it has full authority and legal right to enter into and perform this Agreement.
4.2 Landlord Representations. Landlord represents that, to Landlord’s knowledge:
(a) Landlord owns good and marketable title to the Premises;
(b) The Premises is currently in compliance with Habitability Standards; and
(c) No governmental notice of violation affecting the Premises is outstanding that would materially interfere with Tenant’s intended use.
4.3 Tenant Representations. Tenant represents that:
(a) All information provided in Tenant’s rental application is true, correct, and complete;
(b) Tenant is not relying on any representations of Landlord not expressly set forth in this Agreement; and
(c) Tenant will use the Premises solely as permitted hereunder.
4.4 Survival. The representations and warranties in this Article 4 shall survive the expiration or earlier termination of this Agreement to the extent necessary to determine the Parties’ rights and obligations that arose during the Term.
5. COVENANTS & RESTRICTIONS
5.1 Affirmative Covenants of Landlord. Landlord shall:
(a) Maintain required casualty insurance on the Premises;
(b) Comply with all applicable statutes, ordinances, and regulations affecting the Premises; and
(c) Provide quiet enjoyment to Tenant, subject to Tenant’s performance hereunder.
5.2 Affirmative Covenants of Tenant. Tenant shall:
(a) Pay all Rent and other charges when due;
(b) Maintain renter’s liability insurance with minimum limits of $[AMOUNT] and name Landlord as an additional insured;
(c) Promptly notify Landlord of any condition requiring repair;
(d) Abide by all house rules delivered by Landlord (the “Rules”), provided such Rules are not inconsistent with this Agreement or applicable law.
5.3 Negative Covenants of Tenant. Tenant shall not:
(a) Assign this Agreement or sublease the Premises without Landlord’s prior written consent;
(b) Permit any activity that voids or increases the premium for Landlord’s insurance;
(c) Keep pets except as expressly permitted in [PET RIDER / Section ___];
(d) Commit waste or permit the accumulation of refuse.
5.4 Notice & Cure. Unless a shorter period is required by Illinois law (e.g., five (5) days for non-payment), Tenant shall have [10] days after receipt of written notice to cure any breach of this Article 5 before the same constitutes an Event of Default.
6. DEFAULT & REMEDIES
6.1 Events of Default
Each of the following shall constitute an “Event of Default” by Tenant:
(a) Failure to pay any installment of Base Rent within [5] days after written demand;
(b) Violation of any material covenant not cured within the applicable cure period;
(c) Abandonment of the Premises;
(d) Insolvency, bankruptcy filing, or assignment for the benefit of creditors;
(e) False statements in Tenant’s rental application; or
(f) Repeated violation (three or more) of any covenant within any twelve-month period, whether or not cured.
6.2 Landlord Remedies
Upon an Event of Default, Landlord may, subject to Illinois eviction procedures (currently embodied in 735 ILCS 5/Art. IX):
(a) Serve statutory notice (5-day, 10-day, or 30-day as applicable);
(b) Institute eviction (forcible entry and detainer) proceedings in the state housing division of the Circuit Court of [COUNTY], Illinois;
(c) Terminate this Agreement and recover possession plus damages, including unpaid Rent for the balance of the Term mitigated as required by law;
(d) Apply the Security Deposit toward any sums due; and
(e) Recover reasonable attorney fees and costs as provided in Section 6.4.
6.3 Tenant Remedies
If Landlord materially breaches this Agreement and fails to cure within the statutory period after written notice, Tenant may:
(a) Seek damages as permitted by law;
(b) Terminate this Agreement pursuant to Illinois law; or
(c) Exercise statutory rent-withholding or repair-and-deduct rights, strictly in accordance with applicable requirements.
6.4 Attorney Fees
The prevailing Party in any action to enforce this Agreement shall be entitled to recover its reasonable attorney fees, court costs, and expenses, except where prohibited by 765 ILCS 710/ or other controlling law.
7. RISK ALLOCATION
7.1 Indemnification by Tenant
Tenant shall indemnify, defend, and hold harmless Landlord and its agents from and against any and all claims, damages, losses, and expenses (including reasonable attorney fees) arising out of Tenant’s use or occupancy of the Premises, except to the extent caused by Landlord’s gross negligence or willful misconduct.
7.2 Limitation of Liability
Except for claims involving bodily injury, death, fraud, gross negligence, or willful misconduct, Landlord’s total liability to Tenant under this Agreement shall not exceed the amount of the Security Deposit then held by Landlord.
7.3 Insurance
Tenant shall maintain, at Tenant’s expense, (i) renter’s liability insurance with limits not less than $[AMOUNT] per occurrence for bodily injury and property damage, and (ii) personal property insurance covering Tenant’s belongings. Tenant waives all subrogation claims against Landlord to the extent such claims are covered by Tenant’s insurance.
7.4 Force Majeure
Neither Party shall be liable for failure to perform its obligations (other than payment of money) when such failure is caused by events beyond its reasonable control, including acts of God, governmental actions, or pandemics, provided the affected Party gives prompt notice and resumes performance as soon as reasonably practicable.
8. DISPUTE RESOLUTION
8.1 Governing Law. This Agreement shall be governed by and construed in accordance with the residential landlord-tenant laws of the State of Illinois, without regard to its conflict-of-laws principles.
8.2 Forum Selection. The Parties consent to the exclusive jurisdiction of the state housing division (or its equivalent) of the Circuit Court located in [COUNTY], Illinois, for all actions arising out of this Agreement. Each Party irrevocably waives any objection to venue based on forum non conveniens.
8.3 Arbitration Excluded. The Parties expressly agree that no dispute arising under this Agreement shall be subject to binding arbitration.
8.4 Jury Trial. Nothing in this Agreement shall be construed as a waiver of any Party’s constitutional right to trial by jury.
8.5 Injunctive Relief. Notwithstanding any other provision herein, Landlord may seek injunctive or equitable relief, including but not limited to eviction or possession orders, to enforce Tenant’s obligations.
9. GENERAL PROVISIONS
9.1 Notices. All notices shall be in writing and deemed given when (i) delivered personally; (ii) sent by certified mail, return receipt requested; (iii) sent by nationally recognized overnight courier; or (iv) sent by email with confirmation of receipt, to the addresses set forth below or as later designated in writing.
9.2 Amendment & Waiver. No amendment or waiver of any provision of this Agreement shall be effective unless in writing and signed by both Parties. A waiver of any breach shall not be deemed a waiver of any subsequent breach.
9.3 Assignment & Subletting. Tenant shall not assign this Agreement or sublet the Premises without Landlord’s prior written consent, which may be withheld in Landlord’s sole discretion, subject to applicable law. Any unauthorized assignment or sublease is void and constitutes an Event of Default.
9.4 Successors & Assigns. Subject to Section 9.3, this Agreement shall bind and benefit the Parties and their respective successors and permitted assigns.
9.5 Severability. If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force, and the invalid provision shall be deemed modified to the minimum extent necessary to render it valid and enforceable.
9.6 Integration. This Agreement (including any exhibits and addenda) constitutes the entire agreement between the Parties with respect to the subject matter and supersedes all prior agreements or understandings.
9.7 Counterparts; Electronic Signatures. This Agreement may be executed in multiple counterparts, each of which is deemed an original and all of which constitute one instrument. Signatures delivered by electronic means (e.g., PDF, DocuSign) shall be deemed original signatures.
9.8 Lead-Based Paint Disclosure. If the Premises was built prior to 1978, Tenant acknowledges receipt of the federally-required Lead-Based Paint Disclosure, which is incorporated herein by reference.
9.9 Headings. Article and section headings are for convenience only and shall not affect interpretation.
10. EXECUTION BLOCK
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date first written above.
LANDLORD:
[LANDLORD LEGAL NAME]
By: ____
Name: ____
Title (if applicable): ___
Date: ____
Address for Notices:
Email: _____
TENANT:
[TENANT FULL LEGAL NAME]
Signature: ____
Date: _________
Address for Notices (if different from Premises):
Email: _____
[Optional Notary Acknowledgment Block]
[// GUIDANCE: Not generally required for Illinois residential leases, but may enhance enforceability for multi-year terms.]
[// GUIDANCE: Attach applicable addenda as needed (e.g., Pet Addendum, Lead-Based Paint Disclosure, Move-In/Move-Out Checklist, Rules & Regulations). Verify municipal requirements such as the Chicago RLTO or Evanston’s Landlord Tenant Ordinance if the Premises is located within those jurisdictions.]