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A lease is a legal agreement that you make with your tenant and an essential component in managing any rental property. It should clearly outline the obligations and responsibilities of both parties and include key items such as:
Contact Information
There should be a section for your tenant (lessee) to list the names, phone numbers and email addresses for each person living at the property. The contact information for the property owner (lessor) should be listed as well.
Property Details
Full address of the property including the unit number.
Duration of Lease
Include the start and end date for the lease. For HCV participant families, the lease effective date can be any day of the month except for the 1st.
Rent, Security Deposits & Fees
Include the day of the month the rent is due. List the preferred method(s) for rent payments (e.g., online portal, check, mobile application such as Zelle or Venmo). If you plan on charging a late fee for rent, make sure it's clearly stated. There are legal requirements in Chicago when it comes to the late fee amount. Chicago property owners may charge $10 per month for rents $500 or under. If rent exceeds $500, an additional 5% late fee may be charged on the amount that exceeds the $500 limit.
Chicago also has laws when it comes to security deposits. Under Chapter 5-12 of the Chicago Municipal Code, property owners must pay 0.01% interest (current rate as of this publication) on security deposits unless the building has 6 or less units and is owner-occupied. There isn't a limit on the security deposit amount, however, the amount can't be more than what is being asked for in the private market.
For more information on security deposit interest rates in the City of Chicago, click here.
Renters Insurance
While tenants aren't legally required to have renters insurance, many property owners require their tenants to have it as it protects the tenant and their belongings. Renters insurance can also help property owners avoid liability claims down the road.
Pets
Clearly state whether or not pets are allowed in your unit. If they are allowed, specify if you have any weight restrictions or charge pet fees.
Utilities
State which utilities will be the responsibility of the tenant and which utilities will be your responsibility. Provide service contact information for any utilities that the tenant is expected to pay.
For a full overview of required lease provisions, CHA recommends property owners read and understand the Chicago Residential Landlord and Tenant Ordinance (RLTO).
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