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Question

I am a landlord renting properties. Do I need to give my tenants any disclosures or notices? Is there anything I need to put in the lease?

Answer

In Illinois there are only 4 situations that require landlords to disclose to tenants.  (Chicago landlords must do more.) There’s no general disclosure requirements for all properties and tenants.

The first situation is for places built before 1978. Federal and Illinois law require landlords to provide tenants with information about lead paint hazards. This is satisfied by giving tenants a pamphlet. The pamphlet is from the Department of Housing and Urban Development (HUD).

Federal law also requires landlords to disclose to tenants what they know about lead in the building. Landlords must give tenants copies of any reports of lead testing. This applies even if tests show no lead. Landlords are not required to test for lead. So it’s OK for a landlord to say they don’t know of any lead in the structure.

The second situation requiring a disclosure involves radon. Landlords must provide the Illinois Emergency Management Agency pamphlet entitled "Radon Guide for Tenants" or an equivalent pamphlet approved for use by the Illinois Emergency Management Agency to tenants upon request. Landlords must include Information on Radon Hazards to each tenant of a dwelling unit: 

Landlords don’t have to test for radon. If they do, and tests show a radon hazard, the landlord must disclose that fact to prospective tenants. But—only when renting apartments “below the third floor above ground level.”

Tenants can test for radon. If they detect a hazard, the landlord must disclose to current and prospective tenants. That duty to disclose continues until new tests show no hazard.

Editor's Note: If a tenant tests for radon within 90 days of the beginning of the lease and the test shows excess radon, a tenant must give the landlord an opportunity to correct the problem. If the landlord does not correct it, the tenant can end the lease.

The third and fourth situations requiring disclosure involve utilities. Landlords may divide utilities among tenants with the bill in the landlord's name. This must be disclosed in the lease. Landlords may include common areas in a tenant's utility bill. This must also be disclosed in the lease.

The Tenant Utility Payment Disclosure Act applies to the “master-meter” situation. It requires that a written lease explain how the tenant’s share of the utility bill is calculated. The total of all tenant payments can’t exceed the total utility bill. Upon the tenant’s request, the landlord must provide copies of those bills.

This law only applies when a landlord wants to bill separately from the regular monthly rent for utilities in the landlord’s name. If the utilities are in the landlord’s name, but included in the monthly rent, no disclosure is required.

The Rental Property Utility Service Act applies when the tenant’s own utility bill includes usage outside their own unit. For example, if hallway or exterior lights are on the tenant’s bill, that must be in the lease. This would also apply to a washer or dryer. If undisclosed, the tenant’s rent can be reduced by the full amount of the tenant’s utility bills.

Only this last law provides a remedy if the landlord doesn’t make the required disclosure. Otherwise, failure to disclose might be a violation of the Consumer Fraud Act. Or provide support for a personal injury case for lead poisoning or radon exposure.

Chicago requirements:

In Chicago, Landlords are required to include the Chicago Residential Landlord and Tenant Ordinance Act Summary. The Chicago Residential Landlord and Tenant Ordinance applies unless you live in an owner-occupied building with six or fewer units. This summary must be attached to each written lease agreement and lease renewal. It also must be given to the tenant when there is an oral rental agreement. Landlords must advise tenants if the ordinance does not apply. Landlords must also provide:

• The Preventing Bed Bug Infestations brochure;
• The Security Deposit Interest Rate Summary; and
• Chicago Recycling rules.

Where tenants are responsible for heat, Landlords must also disclose that fact. They must also disclose the annual cost of heat during the previous twelve months.  The tenant is required to acknowledge that these written disclosures were made.