Illinois Landlords Face a Deluge of Disclosure Requirements
Landlords need to stay up to date concerning the many obligations and disclosure requirements that govern their leases and tenant relationships. Disclosure requirements range from the federally mandated lead paint disclosure to local ordinances concerning bed-bugs. Landlords in Chicago must also be aware of the Chicago Residential Landlord and Tenant Ordinance (RLTO). The RLTO’s requirements have changed the way landlords do business, with many avoiding security deposits altogether in order to avoid steep penalties.
Required Disclosures for Rental Property Flooding
Under amendments to the Illinois Landlord and Tenant Act that went into effect on January 1, 2025, landlords must now disclose:
- Whether a rental property is located in the Federal Emergency Management Agency (FEMA) Special Flood Hazard Area (“100-year floodplain”)
- If a rental property has been subjected to flooding and the frequency of such flooding.
Heightened requirements exist for lower-level units, including a clear disclosure of whether the lower-level unit or any portion of the real property containing the lower-level unit has experienced flooding in the last 10 years, as well as the frequency of flooding. A landlord who fails to comply with these requirements can be liable for their tenant’s actual damages which result from flooding.
How to Avoid Penalties
To avoid penalties, landlords must exercise diligence in meeting disclosure obligations and ensuring compliance with a growing number of regulations and ordinances. Fortunately, landlords can easily find leases with all required disclosures that are specifically tailored to their locality. While landlords might groan at having to spend a few extra dollars on a form lease, it’s a good investment to purchase an up-to-date lease providing all the required disclosures to their tenants.
Consult with Levin Ginsburg’s Real Estate Practice Group if you need consultation in navigating the Illinois Landlord and Tenant Act. Our attorneys are here to support you and can provide high quality legal aid if you need it.
