Landlord and Tenant Laws in Illinois – 2025

Renting property in Illinois involves complex legal rules that protect both landlords and tenants. The state has specific laws about security deposits, lease terms, eviction procedures, and property maintenance that every investor should understand. Illinois landlord-tenant law governs rent payments, habitability standards, privacy rights, and notice requirements, with violations potentially leading to costly legal disputes.

Illinois landlord-tenant laws cover everything from lease agreements to eviction processes. These regulations determine how rental income flows, what expenses landlords can expect, and how disputes get resolved. Property investors who understand these rules can make better investment decisions and avoid expensive legal problems.

The Illinois Landlord Retaliation Act took effect in 2025, adding new protections for tenants who file complaints or join tenant unions. This law joins other state regulations that shape how rental properties operate and generate income for investors.

Key Takeaways

• Illinois law sets strict rules for security deposits, lease terms, and eviction procedures that directly impact rental property profitability
• Landlords must maintain habitable conditions and follow specific notice requirements, while tenants have rights to privacy and protection from retaliation
• Understanding these legal requirements helps investors evaluate rental properties and avoid costly disputes that can reduce investment returns

Key Illinois Landlord and Tenant Laws

Illinois landlord-tenant law operates under 765 ILCS 705-750, which establishes automatic rights for both parties when rental agreements exist. Security deposits have no maximum limit statewide, landlords must provide 5-day notices for non-payment, and rent increases face no restrictions outside lease terms.

Security Deposit Rules Illinois

Illinois places no maximum limit on security deposits for most rental properties. Mobile home rentals are the only exception, capped at one month’s rent.

Landlords must return deposits within specific timeframes. Properties with deductions require 30 days for return. Properties without deductions get 45 days for return.

Required documentation includes:

• Itemized written statement of deductions
• Receipts for repair costs
• Personal delivery or certified mail to tenant’s last known address

Interest requirements only apply to landlords with 25 or more units when deposits are held longer than 6 months. Illinois landlord tenant laws allow deductions for unpaid rent, physical damage, lease violations, and actual costs.

Tenants can sue for twice the deposit amount plus wrongfully withheld funds if landlords violate return requirements. Court costs and attorney fees may also be recovered.

Eviction Process Illinois

Non-payment evictions begin with a 5-Day Notice to Pay. Landlords can file formal eviction proceedings if tenants don’t pay within this period.

Lease violations trigger a 10-Day Notice to Cure or Vacate. This gives tenants time to fix problems before facing eviction.

Notice periods for holdover tenants vary:

• Week-to-week: 7 days
• Month-to-month: 30 days
• Year-to-year: 60 days

Illegal activities allow 5-Day Unconditional Notice to Quit with no cure period. Foreclosure situations require 90-Day Notice to Quit.

Properties covered by federal CARES Act receive minimum 30-day advance notice before eviction filings. Landlord retaliation protections prevent evictions for reporting violations or joining tenant organizations.

Rent Increase Laws Illinois

Illinois prohibits rent control at both state and local levels. Landlords can increase rent by any amount as long as they avoid discrimination.

During active lease terms, rent increases are not permitted unless specifically allowed in the lease agreement. Fixed-term leases lock in rental rates until expiration.

No statewide notice requirements exist for rent increases. Landlords and tenants can agree on minimum notice periods within their lease agreements.

Month-to-month tenancies typically require 30 days notice, though this varies by local ordinance. Year-to-year agreements need longer notice periods for changes.

Rent increases cannot be retaliatory against tenants who report violations or exercise legal rights. Discrimination based on protected classes remains illegal regardless of rent increase timing.

Tenant Rights in Illinois

Illinois tenants have specific legal protections regarding privacy, housing conditions, and lease termination. State law provides clear guidelines for landlord entry, habitability requirements, and tenant options for ending rental agreements.

Tenant Privacy Laws Illinois

Illinois does not have a comprehensive statewide law governing landlord entry rights. However, landlord access to rental property must be for purposes reasonably related to the lease agreement.

General Entry Rules:

• Landlords must provide reasonable advance notice
• Entry must occur at reasonable times
• Purpose must relate to lease obligations or property maintenance

Many cities have specific ordinances with stricter requirements. Chicago, for example, has detailed rules about required notice periods before landlord entry.

Landlords cannot enter for harassment or retaliation purposes. They also cannot use entry as a form of intimidation against tenants who exercise their legal rights.

Common Valid Entry Reasons:

• Emergency repairs or safety concerns
• Scheduled maintenance or inspections
• Showing property to prospective tenants or buyers
• Rent collection when other methods fail

Tenants should check local city ordinances for specific notice requirements and entry restrictions in their area.

Habitability Standards Illinois

Illinois requires landlords to maintain rental units that are “habitable and fit for living.” This standard is less detailed than many other states but still provides tenant protections.

Properties must not have major violations of applicable housing codes. Landlords have 14 days to complete repairs after receiving written notice from tenants.

Landlord Repair Obligations:

• Fix heating and plumbing systems
• Address electrical problems
• Maintain structural integrity
• Ensure basic safety standards

If repairs are not completed within 14 days, tenants have legal options. They can make repairs themselves and deduct costs from rent payments.

Tenants can also report code violations to local authorities. Some may choose to sue landlords for habitability violations if problems persist.

Tenant Maintenance Duties:

• Keep units clean and undamaged
• Remove hazards that could affect safety
• Complete minor repairs and basic maintenance
• Avoid disturbing neighbors

These responsibilities cannot be waived regardless of lease agreement terms.

Lease Termination Rights Illinois

Illinois tenants must provide specific notice periods when ending rental agreements. The required notice depends on the type of tenancy arrangement.

Required Notice Periods:

Lease Type	Notice Required
Week-to-Week	7 days
Month-to-Month	30 days
Year-to-Year	60 days

Tenants can legally break leases early in certain situations without penalty. Active military duty allows early termination under federal law.

Legal Early Termination Reasons:

• Uninhabitable living conditions
• Domestic violence situations
• Active military deployment
• Early termination clauses in lease agreements

When tenants break leases early, they remain liable for remaining rent. However, landlords must make reasonable efforts to find new tenants.

Once landlords re-rent the unit, original tenants are no longer responsible for remaining lease payments. Landlords cannot keep entire security deposits solely because tenants broke their lease early.

Understanding Illinois tenant rights and landlord responsibilities helps both parties navigate lease termination properly.

Landlord Obligations in Illinois

Illinois landlords must follow specific maintenance standards, provide proper notice before entering rental units, and return security deposits within set timeframes. These requirements protect tenant rights while establishing clear expectations for property owners.

Maintenance Requirements Illinois

Illinois landlords must maintain rental properties in habitable condition under state law. This includes ensuring proper heating, plumbing, electrical systems, and structural integrity.

Essential maintenance obligations include:

• Heat between 68-72°F during cold months
• Working plumbing and hot water systems
• Functional electrical wiring and outlets
• Structural repairs for walls, floors, and roofs
• Pest control measures when infestations occur

Landlords must respond to repair requests within a reasonable timeframe. Emergency repairs like heating failures or water leaks require immediate attention.

Properties must meet local building codes and safety standards. Smoke detectors and carbon monoxide detectors are required in most rental units.

Tenants can withhold rent or terminate leases if landlords fail to maintain habitable conditions. Courts may also order rent reductions for substandard housing.

Entry Notice Laws Illinois

Illinois law requires landlords to provide reasonable notice before entering rental units. Most situations require 24-48 hours advance written notice to tenants.

Valid reasons for landlord entry include:

• Routine inspections and maintenance
• Showing property to prospective tenants
• Emergency repairs or safety concerns
• Court-ordered access

Emergency situations allow immediate entry without notice. These include gas leaks, fires, or serious safety hazards that threaten life or property.

Landlords cannot enter simply to check on tenants or their belongings. They must respect tenant privacy rights and reasonable enjoyment of the property.

Tenants can refuse entry if proper notice was not given. Landlords who violate entry laws may face legal penalties and damage claims.

Security Deposit Return Policy Illinois

Illinois landlords must return security deposits within 45 days after lease termination. This timeline applies regardless of lease length or deposit amount.

Security deposit rules include:

• Maximum deposit cannot exceed 1.5 times monthly rent
• Itemized list of deductions must be provided
• Normal wear and tear cannot be charged to tenants
• Interest payments required for deposits held over 6 months

Landlords can deduct costs for property damage beyond normal wear. They must provide receipts and detailed explanations for all charges.

Failure to return deposits on time triggers penalty payments. Tenants may recover twice the deposit amount plus attorney fees through Illinois tenant protection laws.

Small claims court handles most deposit disputes. Landlords should document property conditions with photos before and after tenancy.

Rental Agreements in Illinois

Illinois law allows both written and oral lease agreements, though written contracts provide better protection for landlords and tenants. Illinois rental lease agreements must include specific terms and disclosures, with different notice requirements for month-to-month and fixed-term leases.

Required Lease Terms Illinois

Every lease agreement in Illinois must contain essential information to be legally valid. The rent amount and due date must be clearly stated in the contract. The lease duration should specify whether it’s a fixed-term lease or month-to-month tenancy.

Essential lease terms include:

• Names of all parties involved
• Property address and description
• Security deposit amount and terms
• Pet policies and restrictions
• Maintenance responsibilities

The lease agreement should outline who handles repairs and maintenance. Landlords typically maintain structural elements while tenants handle minor upkeep. Payment methods and late fee policies must be specified in writing.

Illinois law doesn’t require written leases for agreements under one year. However, written lease agreements prevent disputes and provide clear documentation of terms. Month-to-month tenancy agreements automatically renew unless proper notice is given.

Disclosures for Illinois Rentals

Illinois landlords must provide specific disclosures before tenants sign lease agreements. Properties built before 1978 require lead-based paint disclosure under federal law. The disclosure must include known information about lead hazards and provide EPA educational materials.

Required disclosures include:

• Lead-based paint information (pre-1978 properties)
• Radon hazard disclosure
• Building owner or manager contact information
• Security deposit handling procedures

Radon disclosure is mandatory under the Illinois Radon Awareness Act. Landlords must inform tenants about potential radon hazards before lease signing. The disclosure protects both parties from future liability issues.

Illinois landlord tenant rights require landlords to provide written notice about security deposit procedures. This includes information about interest payments on deposits held longer than six months.

Renewal and End of Lease Illinois

Lease termination requires proper notice based on the tenancy type. Week-to-week tenancies need 7 days notice from either party. Month-to-month agreements require 30 days written notice to terminate.

Notice requirements by lease type:

• Week-to-week: 7 days notice
• Month-to-month: 30 days notice
• Year-to-year: 60 days notice

Fixed-term leases automatically end on the specified date without notice. If tenants remain past the lease term, they become holdover tenants. Landlords can choose to accept rent and create a new month-to-month tenancy.

Lease renewal terms should be negotiated before the current lease expires. Landlords can modify terms during renewal, including rent increases with proper notice. Tenants should receive written confirmation of any lease changes or renewal agreements.

Resolving Disputes in Illinois Rentals

Illinois landlords and tenants have multiple pathways to resolve conflicts, from handling unpaid rent through court procedures to utilizing mediation services. The state provides both informal resolution methods and formal legal remedies through small claims court.

Handling Unpaid Rent Illinois

Landlords must follow specific procedures when tenants fail to pay rent on time. Illinois law requires landlords to serve a 5-day notice for unpaid rent before filing eviction proceedings.

The notice must include the exact amount owed and give tenants five days to pay or vacate. Landlords cannot accept partial payments after serving this notice unless they agree to withdraw the eviction case.

If tenants don’t respond within five days, landlords can file an eviction lawsuit in court. The case typically takes 2-4 weeks to complete if tenants don’t contest it.

Key steps for unpaid rent:

• Serve 5-day notice with exact amount due
• Wait full five days before filing court case
• File eviction lawsuit if payment not received
• Attend court hearing for final judgment

Tenants can dispute the amount owed or claim the landlord violated lease terms. They must present evidence at the court hearing to support their defense.

Tenant-Landlord Mediation Illinois

Mediation offers a faster, cheaper alternative to court proceedings for many rental disputes. Many Illinois counties provide tenant-landlord mediation services through local housing authorities or community organizations.

Mediators help both parties reach agreements on issues like security deposits, property maintenance, and lease violations. The process typically takes 1-2 hours and costs significantly less than hiring attorneys.

Benefits of mediation:

• Faster resolution than court cases
• Lower costs than litigation
• Preserves landlord-tenant relationship
• Flexible solutions not available in court

Both parties must agree to participate in mediation. Agreements reached during mediation become legally binding contracts once signed.

Mediation works best for disputes involving miscommunication, minor lease violations, or disagreements about property conditions.

Legal Remedies Illinois

When mediation fails or disputes involve serious violations, landlords and tenants can pursue legal action through Illinois courts. Small claims court handles cases up to $10,000 without requiring attorneys.

Common legal remedies include:

• Security deposit disputes
• Property damage claims
• Lease violation penalties
• Utility payment disagreements

Illinois small claims court filing fees range from $50-$150 depending on the claim amount. Cases typically resolve within 30-60 days of filing.

Landlords can sue for unpaid rent, property damage beyond normal wear and tear, and lease violation fees. Tenants can sue for wrongfully withheld security deposits, illegal entry, or failure to maintain habitable conditions.

Winners in small claims court can garnish wages or bank accounts if the losing party doesn’t pay voluntarily. Court judgments remain valid for seven years and can be renewed.

Passive Investing in Illinois Rentals

Illinois rental properties offer multiple paths to passive income without requiring direct property management or full ownership responsibilities. Investors can access rental income through fractional ownership models and streamlined investment platforms that handle day-to-day operations.

Illinois Rental Income Opportunities

Illinois rental markets provide steady income potential, particularly in college towns and urban areas. College towns in Illinois offer built-in rental demand from students and young professionals who remain after graduation.

The state’s diverse economy supports rental demand across multiple sectors. Chicago’s financial district, university towns like Urbana-Champaign, and suburban markets each offer distinct investment opportunities.

Key Illinois rental markets include:

• Chicago metro area
• Champaign-Urbana
• Springfield
• Peoria
• Rockford

Illinois has no rent control laws, allowing property owners to set market-rate rents. This flexibility helps maximize rental income potential compared to rent-controlled markets.

Property values in Illinois remain relatively affordable compared to coastal markets. Lower entry costs allow investors to diversify across multiple properties or markets with limited capital.

Streamlined Investing Illinois

Traditional rental property investment requires significant capital, financing, and management expertise. Streamlined investment options eliminate these barriers for passive investors.

Fractional real estate investment platforms allow investors to purchase shares in rental properties rather than entire buildings. This approach reduces capital requirements from hundreds of thousands to just hundreds of dollars.

Benefits of streamlined investing:

• Lower minimum investment amounts
• Professional property management included
• Diversification across multiple properties
• No financing or loan applications required

Technology platforms handle tenant screening, rent collection, and maintenance coordination. Investors receive monthly distributions without handling day-to-day operations.

Some platforms focus specifically on single-family rentals in growing Illinois markets. Others offer exposure to multi-family properties in established neighborhoods.

Ownership Without Landlord Duties

Passive rental investing separates ownership benefits from management responsibilities. Investors earn rental income and potential appreciation without tenant interactions or property maintenance.

Professional management companies handle all landlord duties including lease agreements, rent collection, and repairs. This structure allows investors to benefit from real estate ownership while maintaining truly passive income.

Landlord duties handled by management:

• Tenant screening and placement
• Rent collection and late fees
• Maintenance and repairs
• Legal compliance
• Property inspections

Ark7 offers fractional ownership in Illinois rental properties with full management services included. Investors can purchase shares starting at $100 and receive monthly rental income distributions.

The platform handles all property management aspects, from tenant relations to maintenance requests. Investors simply monitor their investment performance through an online dashboard without any direct involvement in property operations.

How Ark7 Simplifies Illinois Rental Property Investment

Ark7 offers fractional ownership opportunities in Illinois rental properties through a digital platform that handles property management, tenant screening, and maintenance tasks. The platform allows investors to purchase shares in income-generating properties without the traditional barriers of full property ownership.

Ark7 Platform Features Illinois

Ark7’s platform streamlines the rental property investment process for Illinois investors through automated property management services. The platform handles tenant screening, rent collection, and maintenance coordination for all properties in their portfolio.

Investors can browse available Illinois properties with detailed financial projections and market analysis. Each property listing includes rental income potential, expense breakdowns, and neighborhood data specific to Illinois markets.

The platform provides quarterly financial reports showing rental income, expenses, and property appreciation. Investors receive their proportional share of rental income based on their ownership percentage in each property.

Property selection focuses on markets with strong rental demand and appreciation potential. The platform’s research team analyzes Illinois market trends, employment data, and population growth to identify profitable investment opportunities.

Fractional Ownership Illinois

Fractional ownership through Ark7 allows investors to own shares in Illinois rental properties starting at $20 per share. This model eliminates the need for large down payments or mortgage financing typically required for traditional rental property purchases.

Multiple investors share ownership of a single property, with each investor receiving rental income proportional to their share count. This approach spreads risk across multiple investors while maintaining professional property management standards.

Investors can diversify across different Illinois markets and property types without managing multiple properties directly. The fractional model provides access to markets that might be unaffordable for individual investors purchasing entire properties.

Illinois AirBnB investing opportunities include both traditional rental properties and short-term rental investments through the platform’s selection process.

Why Consider Ark7 for Illinois Rentals

Illinois rental property investment through Ark7 eliminates common barriers like property management responsibilities and large capital requirements. The platform handles tenant relations, maintenance requests, and legal compliance with Illinois landlord tenant laws.

Professional management teams handle all aspects of property operations, from tenant screening to rent collection. This removes the time commitment typically required for hands-on property management.

The platform’s fee structure is transparent, with management fees deducted from rental income before distribution to investors. This eliminates surprise expenses and simplifies the investment process for passive income seekers.

Illinois properties on the platform undergo thorough financial analysis before listing. The research team evaluates market conditions, rental rates, and property condition to ensure investment viability for fractional owners.

Frequently Asked Questions

Illinois tenant and landlord laws cover property sales, repair requirements, entry notice periods, and lease non-renewal procedures. Recent 2025 updates include electric vehicle charging rights and specific disclosure requirements.

What rights do tenants have when their rental property is sold in Illinois?

Tenants retain their lease rights when a rental property is sold in Illinois. The new owner must honor existing lease agreements and cannot terminate tenancies early due to the sale.

Security deposits transfer to the new owner with the sale. The original landlord must either return deposits to tenants or transfer them to the new owner with proper documentation.

Month-to-month tenants receive the same protections as lease-holding tenants during property sales. New owners cannot immediately evict tenants without proper legal grounds and notice periods.

What are the legal requirements for landlords to perform repairs in Illinois?

Illinois landlords must complete repairs within 14 days after receiving written notice from tenants. This timeline applies to necessary repairs that affect habitability.

Tenants can deduct repair costs from rent if landlords fail to make timely repairs. They must provide written notice and allow the full 14-day period before taking action.

Landlords must maintain rental units as “habitable and fit for living” under Illinois law. This includes addressing major housing code violations and essential systems like plumbing and heating.

How much notice is required for landlords to enter a tenant’s unit in Illinois?

Illinois does not have a statewide law specifying landlord entry notice requirements. Landlords must provide reasonable advance notice at reasonable times for lease-related purposes.

Many Illinois cities have local ordinances requiring specific notice periods for landlord entry. Chicago and other municipalities often require 24-48 hours advance notice.

Emergency situations allow immediate landlord entry without notice. Non-emergency entries require reasonable notice and must relate to legitimate lease purposes like repairs or inspections.

What are the latest updates to the landlord-tenant laws in Illinois as of 2025?

Illinois tenants gained rights to electric vehicle charging stations as of 2024. Tenants can pay to install charging stations personally or coordinate installation with landlords.

New disclosure requirements took effect for carbon monoxide and smoke detector maintenance information. Landlords must provide testing and maintenance details to comply with updated safety acts.

Enhanced protections exist for tenants with domestic violence history under recent law updates. These protections include lock change requests and additional discrimination safeguards.

What limitations exist on the actions of a landlord in Illinois regarding tenant interactions?

Illinois prohibits landlord retaliation against tenants who exercise legal rights. Landlords cannot raise rent, reduce services, or threaten eviction for tenant complaints about code violations.

Discrimination based on protected characteristics is illegal under Illinois law. Protected groups include race, religion, sexual orientation, gender identity, and immigration status beyond federal protections.

Self-help evictions are prohibited, including changing locks to force tenant removal. Landlords must follow proper legal eviction procedures through the court system.

What is the required notice period for a landlord not renewing a lease in Illinois?

Year-to-year tenants require 60 days notice for lease non-renewal in Illinois. This notice period allows sufficient time for tenants to find alternative housing arrangements.

Month-to-month tenants need 30 days notice for lease termination. Week-to-week arrangements require only 7 days notice for non-renewal.

Fixed-term leases automatically expire at the end of their term without renewal notice requirements. Landlords must provide holdover notices if tenants remain after lease expiration.