A Chicago residential lease form meets RLTO compliance when you start from a current Chicago-specific form, fill in every field the Chicago Residential Landlord and Tenant Ordinance expects to see, keep the late fee and security deposit terms within the ordinance’s limits, and attach the disclosures the city and federal law require before anyone signs. The form itself is only part of the package. What goes with it, and what you leave out of it, matters just as much.
First, Confirm the Ordinance Applies to Your Unit
The RLTO covers most residential rentals inside Chicago, but not all of them. Owner-occupied buildings with six or fewer units are exempt from most provisions, as are hotel and motel rooms, dormitories, shelters, employee quarters, nonresidential rentals, and owner-occupied co-ops.1City of Chicago. Residential Landlord and Tenant Ordinance A handful of RLTO rules still reach exempt buildings, including certain lockout protections under Section 5-12-130(j).2American Legal Publishing Corporation. Municipal Code of Chicago – Chapter 5-12 Residential Landlords and Tenants – Section 5-12-010 If your building is exempt, you can use a simpler Illinois lease. If it is covered, read on.
Start With a Current Chicago Lease Form
Do not pull a generic Illinois template off a free forms site. The Chicago Association of REALTORS publishes an updated residential lease each year that reflects the current RLTO requirements and the annual security deposit interest rate; the 2026 version is on the Association’s Forms and Contracts page.3Chicago Association of REALTORS. New 2026 Residential Lease and Security Deposit Interest Rates Now Available The City of Chicago Department of Housing also hosts a sample residential lease. Either source gets you a form built around the deposit interest rate, the RLTO summary attachment, the late-fee cap, and the heating-cost disclosure. A generic template will be missing those pieces, and reconstructing them by hand is where landlords make mistakes.
Fill In the Core Fields
The lease should name every adult occupant, not just the person writing the rent check. It must also list the name, address, and telephone number of the property owner (or the person authorized to manage the building) and of a person authorized to accept legal notices on the owner’s behalf.4American Legal Publishing Corporation. Municipal Code of Chicago – Section 5-12-090 Leave these blank at your own risk; a tenant who cannot identify the owner has a harder time serving notice, and the landlord loses certain remedies.
Enter the full street address and unit number, the lease start and end dates, the exact monthly rent, and the day of the month rent is due. List any move-in charges beyond the security deposit. If you charge an application fee for credit and background screening, disclose that fee and the screening criteria before the tenant applies.
Who Pays Which Utility
Specify, line by line, who pays for heat, electricity, gas, and water. This is the single most common source of mid-tenancy arguments, and ambiguity on the form is what creates it. If the tenant pays for individually metered heat, you must also provide a heating cost disclosure as part of the lease package, projecting the annual and average monthly heating cost based on the most recent 12 months of continuous occupancy, adjusted for current rates and normal weather.5City of Chicago. Heating Cost Disclosure Rules That requirement comes from Chapter 5-16 of the Municipal Code, and it applies to every covered rental where the tenant is on the hook for heat.
Set a Late Fee Within the RLTO Cap
The ordinance caps late charges at $10 per month for the first $500 of monthly rent, plus five percent per month for any rent above $500. On a $1,800 rent, the maximum lawful late fee is $75: $10 on the first $500, plus 5% of the remaining $1,300. Write a higher number into the lease and the clause is unenforceable. Try to collect on it anyway and the tenant can recover two months’ rent in damages.6American Legal Publishing Corporation. Municipal Code of Chicago – Section 5-12-140
Handle the Security Deposit on the Form Itself
Security deposit mistakes carry the stiffest penalties in the ordinance. A violation of any provision of Section 5-12-080 exposes the landlord to damages equal to two times the deposit plus interest.7American Legal Publishing Corporation. Municipal Code of Chicago – Section 5-12-080 Three things need attention when you fill out the form.
Name the Bank on the Lease
All deposits must be held in a federally insured, interest-bearing account at a bank, savings and loan, or other financial institution located in Illinois, and the lease must clearly state the name and address of that institution.7American Legal Publishing Corporation. Municipal Code of Chicago – Section 5-12-080 A personal checking account or an out-of-state bank violates the ordinance on day one. Fill in the actual institution name and address in the lease blank; do not leave it generic.
Issue a Compliant Receipt When the Money Changes Hands
When you collect the deposit, give the tenant a signed receipt listing the amount, the name of the person receiving it (and the landlord’s name if the recipient is an agent), the date received, and a description of the unit. For electronic transfers, an electronic receipt with a digital signature works as long as the same information is on it.7American Legal Publishing Corporation. Municipal Code of Chicago – Section 5-12-080 Skip the receipt and the tenant can demand immediate return of the entire deposit.
Use the Current Year’s Interest Rate
The Chicago City Comptroller sets the deposit interest rate annually. For 2026, the rate is 0.01%.8City of Chicago. Security Deposit Interest Rates The dollar amount is small; the obligation to pay on time is not. Interest is due within 30 days after the end of each 12-month rental period, by cash, rent credit, or check. A late or missed payment can trigger the two-times-deposit penalty.
On move-out, you have 45 days to return the deposit balance with accrued interest. Any damage deductions require an itemized statement within 30 days of the move-out, listing each item and its estimated or actual repair cost, with paid receipts attached. If you send estimates first, actual-cost receipts or a certification must follow within another 30 days.7American Legal Publishing Corporation. Municipal Code of Chicago – Section 5-12-080 Faded paint, small nail holes, and carpet worn from walking are normal wear and cannot be deducted. Large holes, carpet burns, and unapproved wallpaper can be. Depreciation matters too: you cannot bill a tenant for a brand-new carpet to replace one that was already eight years old.
Attach Every Required Disclosure
The lease form by itself is incomplete. The following documents go into the package you hand the tenant at or before signing.
RLTO Summary
A copy of the current RLTO Summary must be attached to every written lease when it is first offered, for both new leases and renewals. If the agreement is oral, hand the tenant a copy. Skip this and the tenant can terminate with 30 days’ written notice or sue for $100 in damages.9American Legal Publishing Corporation. Municipal Code of Chicago – Section 5-12-170 The City publishes the current summary in English and other languages on the Department of Housing site.
Bed Bug Brochure
Provide a bed bug brochure at every new lease and every renewal. This requirement does not apply to owner-occupied buildings with six units or fewer.10City of Chicago. Learn About Bed Bugs and Requirements for Landlords and Tenants If the building has had an infestation in the past, disclose that history to the tenant to head off later liability.
Lead-Based Paint Disclosure (Pre-1978 Buildings)
For any unit built before 1978, federal law requires disclosure of known lead-based paint or lead hazards before the lease is signed, delivery of the EPA pamphlet “Protect Your Family from Lead in Your Home,” and signed acknowledgment from both parties.11US EPA. Lead-Based Paint Disclosure Rule (Section 1018 of Title X) Much of Chicago’s housing predates 1978, so assume this applies unless you have reason to think otherwise.
Heating Cost Disclosure
Already covered above under utilities. If the tenant pays metered heat, the disclosure goes in the package.
Adverse Action Notice (for Denied Applicants)
This one is not an attachment to the lease but a step you need to handle for anyone you turn away based on a tenant-screening report. The notice must list the screening company’s name, address, and phone number, explain the applicant’s right to a free copy of the report within 60 days, and explain the right to dispute inaccuracies.12Consumer Financial Protection Bureau. What Should I Do if My Rental Application Is Denied Because of a Tenant Screening Report? An adverse action includes requiring a co-signer or a larger deposit than other applicants pay, not just an outright denial.
Strip Out Prohibited Clauses
The RLTO voids several terms that still appear in older or out-of-state templates. If your form contains any of them, cross them out before signing. A Chicago lease cannot:
- Waive any right or remedy the RLTO gives either party.
- Authorize a confession of judgment allowing the landlord to take a default without notice.
- Waive the right to a jury trial.
- Shift the landlord’s attorney’s fees to the tenant, unless a court rule, statute, or ordinance specifically permits it.
- Give one party shorter cancellation notice than the other without a separate written disclosure of that difference.
Including a prohibited clause makes it unenforceable, and attempting to enforce one lets the tenant recover two months’ rent.6American Legal Publishing Corporation. Municipal Code of Chicago – Section 5-12-140
Sign, Deliver, and Keep Copies
Every adult tenant and the landlord (or authorized agent) should sign and date the lease and every disclosure. Collect signatures on the RLTO summary acknowledgment, the lead paint disclosure if applicable, and any other addenda at the same session so nothing is missed. Give the tenant a fully executed copy of the complete package promptly after signing. Keeping the only signed copy for yourself is how disputes about terms get started.
At the moment the security deposit changes hands, hand over the signed receipt. Keys usually go on the lease start date. Once the tenant has a signed lease, every required disclosure, a deposit receipt, and the keys, the move-in is documented and the lease is complete.