As a Chicago, Illinois landlord, are you wondering how to go about breaking a lease in this Illinois city?
A rental lease is a written agreement between a landlord and your Illinois tenants who rent your property or apartment. Under normal circumstances, neither party can end the tenancy or break a lease unless the other party consents to it.
However, in Illinois, if a tenant breaks the lease for legally justified reasons, they may not be held liable for the remaining rent. In all other cases, Illinois landlords can hold tenants financially responsible for any losses incurred.
Now, breaking a lease for an existing or new lease in Illinois can be legally justified or not. When it's legally justified, your tenants may be able to break their rental lease in Illinois without further responsibility except by providing an early lease termination notice requirements, requiring the landlord to find new tenants to rent your apartment or rental unit earlier than expected.
Examples of situations in which tenants may be able to legally break a lease in Illinois include if they're active service members or victims of domestic or sexual violence. In those cases, even for a month to month lease agreement, a landlord may require the tenant to provide proper notice indicating the end of their tenancy and any unpaid paying obligations.
Plus, Illinois tenants might need to ensure paying for any damages or repairs before moving out after giving the notice.
However, when tenants do not have a legally justified reason to end the lease agreement, landlords can hold them financially liable for any losses incurred. More specifically, as landlords, you can require them to pay the total remaining rent, regardless of whether they continue living on the rental or not.
Landlords may issue a formal notice to the tenant, informing them of their financial obligations, and they must provide notice if they intend to vacate early. Failure to provide notice may result in further penalties or legal action.
Examples of legally unjustified reasons when an existing or new tenant breaks a lease in Illinois include:
According to Illinois law, these reasons for a tenant to break a lease provide no legal protection against penalties for failing to honor leases. The importance of adhering to lease terms and the state landlord-tenant law is why many Chicago landlords enlist the help of an experienced property management company to handle lease agreements and send out notice to tenants on on their behalf.
Let's take a more in-depth look at a tenant and landlord's responsibility when lease agreements can be broken:
A lease agreement typically binds both parties for a period of one year. Until the lease ends, the contract gives both the landlord and their tenants certain rights and responsibilities.
Your Illinois tenant has a right, for instance, to live in their rented apartment for the entire life of the lease agreement, assuming they abide by the lease agreement. Abiding by leases means that a tenant must pay rent on time and provide notice of maintenance issues on the premises.
On your part as the landlord, you have a right to evict the tenant for violating the lease agreement. A landlord can evict a tenant for reasons such as:
With that being said, it is a landlord's duty to ensure their eviction process adheres to Illinois landlord tenant law.
Even if tenants aren't paying rent, it’s likely illegal for a landlord to evict a problem tenant through
“self-help” eviction tactics. Such tactics include when you terminate utilities such as heat or electricity, remove the front door, or remove the tenant’s belongings after their lease expires.
The eviction process must begin with serving the tenant with a proper written notice. The landlord written notice must be relevant to the violation committed. If a landlord is evicting a tenant for unpaid rent, for instance, as the landlord, you must serve the tenant with a 5-Days’ Notice to Pay Rent or Leave which will force the tenant to either pay the rent owed or break their tenancy and vacate the rental unit.
Normally, once a tenant signs a lease, according to Illinois law, they become contractually bound to pay rent for the entire lease term regardless of whether they wish to break the lease. A landlord can enforce this agreement and hold the tenant liable for unpaid rent.
However, it's important to note that there is an exception to this blanket rule. If the reason for breaking the lease is legally justified, then the tenant will have no further obligation under the lease. In such cases, a landlord must accept the termination and cannot require further payment.
It's important to note that there is an exception to this blanket rule, however. If the reason for breaking the lease is legally justified, then your tenant will have no further obligation under the lease.
Under the Illinois law, the following are justifiable reasons for renters to terminate a lease early in the state of Illinois.
Tenants entering active military service have a right to break their lease under federal law. The Servicemembers Civil Relief Act (SCRA) protects members who have been deployed or received permanent change of station orders.
The law only protects members of the “uniformed services.” They include:
To break a lease, a landlord may require the tenant to do the following:
One: show proof that the lease agreement was signed prior to joining active service.
Two: show proof that they are going to be on duty for the next ninety days.
And three: provide you a copy of the deployment letters in addition to notifying you of their intent to move out.
Does your lease have an early termination clause? If so, a tenant can use it to break the lease early.
Normally, a landlord who allows a tenant to terminate a lease early usually requires them to pay a small penalty fee when they break the lease. The fee helps take care of some re-renting costs. For example, cost of advertising the vacant rental unit and screening a new tenant.
The early termination fee is usually equivalent to the rent of two months. A landlord may also require existing renters to provide them with sufficient notice prior to ending the lease term so there is time to find a new tenant, as well.
Every state in the U.S. has sets minimum standards for health and safety codes for every rental unit, and Illinois isn’t an exception.
As a landlord, you have a responsibility to maintain your unit. It must at all times meet state and local ordinances in regards to health, safety, and building codes. If you don’t, a tenant may have several options to consider.
Your tenant may have the option to make the repairs and deduct the costs from the rent. The Residential Tenants’ Right to Repair Act defines the circumstances that must be met for a tenant to exercise that right.
Your tenant can also choose to move out, as you may have failed in your responsibilities.
When a landlord violates or harasses tenants, it may be enough justification for a tenant to terminate the lease. Examples of actions that may amount to landlord harassment include:
Every tenant in the state of Illinois also has a right to privacy. The state, however, doesn’t have a statute on when a landlord must notify the tenant of their entering the rented premises. That said, to protect yourself against claims of landlord harassment, provide renters with some form of notice.
Domestic violence victims also have a right under Illinois law (765 Ill. Comp. Stat. §750/15) to break their lease early. Besides domestic, the same applies to victims of sexual abuse and sexual assault.
As a landlord, we hope this guide gives you a general understanding of how to break a lease in Illinois. You also understand the legal process and the responsibilities of both the landlord and tenant.
If you have any further questions about breaking a lease in Illinois, security deposit laws, Illinois landlord tenant law or need help managing or need to re rent your unit, MTD Property Management can assist you! We have more than 30 years of experience in the Chicago real estate market.
Disclaimer: This blog on how to break your lease isn’t a substitute for professional legal advice from a qualified attorney. Laws change frequently, and this post might not be up-to-date at the time you read it. For help or edits, kindly get in touch with us.