Illinois Sublease Agreement
An Illinois sublease agreement is a legal contract that allows a tenant (the sublessor) to rent out all or part of their leased property to another tenant (the sublessee) in exchange for regular payments. The sublessee must adhere to the terms of the original lease, while the primary tenant remains responsible for any damages or lease violations committed by the sublessee.

Illinois Sublease Agreement
Right to Sublet
In Illinois, the ability of a tenant to sublet is primarily governed by the lease agreement between the landlord and tenant. Illinois state law does not specifically address a tenant’s right to sublet; instead, the lease will determine if subletting is permitted. If the lease requires landlord consent for subletting, tenants must obtain explicit written permission to sublet. However, in Chicago, tenants have an absolute right to sublet, regardless of the lease terms, as long as the sublease is deemed “reasonable.”
Permission to Sublet
Generally, tenants in Illinois need written permission from their landlord to sublet their rental unit unless the lease explicitly states otherwise. If the original lease allows subletting or does not mention it, the tenant can sublease without landlord permission. If the lease prohibits subletting, doing so without approval would breach the original lease.
Standardized Illinois Sublease Agreement Components
An Illinois sublease agreement typically includes the following elements:
- The Names of the Parties: Identification of the original tenant (Sublessor) and the subtenant (Sublessee).
- Rent: Details on the amount, payment schedule, and payment method.
- Term: Start and end dates of the sublease.
- Rental Unit Location: Address of the rental unit as per the master lease.
- Liability: Sublessee’s liability for damages, with the Sublessor ultimately responsible for any damages affecting the landlord.
- Authorized Occupants: Identification of individuals authorized to reside in the rental unit.
- Security Deposit: Held by the Sublessor, with no maximum limit except in mobile home parks.
- Return of Security Deposit: Must be returned within 45 days if no deductions are made, or within 30 days if deductions are intended.
- Inventory of Included Items: List of items included in the sublease.
- Lead-Based Paint Notice: Required if the property was built before 1978.
- Master Lease Inclusion: A copy of the master lease must be attached.
- Dispute Resolution: Methods for resolving disputes between Sublessor and Sublessee.
- General Conditions: Statement that the agreement encompasses all terms and can only be modified in writing.
- Utilities: Specification of which party pays for utilities.
- Smoking Policy: Any restrictions on smoking within the rental unit.
- Landlord’s Consent: Procedure for obtaining landlord consent if not already included in the master lease.
- Signature: Required signatures and dates from all parties involved.
Tax Implications of a Sublease
In Illinois, sublessors may be subject to a hotel operator’s tax if they sublet for less than 30 days. The tax structure includes:
- State Hotel Tax: A 6% state tax applies to short-term rentals.
- Local Taxes: Additional taxes may be levied at the city and county levels.
- Local Restrictions: Some areas, such as Lake County, prohibit short-term rentals in residential zones.
Overall, understanding the regulations surrounding subleasing in Illinois is crucial for both tenants and landlords to ensure compliance with the law and the terms of their lease agreements.
Statutes
- 765 ILCS 710/1 – Statement of damage
- 765 ILCS 710(c) – Statement of damage
- 765 ILCS 715/1
- 765 ILCS 715/2
- 735 ILCS 5/9-102 – When action may be maintained
- 735 ILCS 5/9-205 – Notice to terminate tenancy from year to year
- 735 ILCS 5/9-207(a) – Notice to Terminate a Week-to-Week Lease
- 735 ILCS 5/9-207(b) – Notice to Terminate a Month-to-Month Lease
- 735 ILCS 5/9-207.5 – Termination of bona fide leases in residential real estate in foreclosure
- 735 ILCS 5/9-209 – Demand for rent – eviction action
- 735 ILCS 5/9-210 – Notice to quit
- 735 ILCS 5/9-213.1 – Duty of landlord to mitigate damages
- 735 ILCS 5/9-318 – Seizure of Crops for Unpaid Rent
- 765 ILCS 705/25 – (Text of Section from P.A. 103-840) Disclosure of potential flooding in rental and lease agreements
- 765 ILCS 735/1.4 – Prohibition on termination of utility service by landlord
- 765 ILCS 750/1 – Short Title
- 765 ILCS 750/5 – Purpose
- 765 ILCS 740/5 – Disclosure of utility payments included in rent
- 765 ILCS 742/5 – Repair; deduction from rent
- 765 ILCS 750/20 – Change of Locks
- 765 ILCS 750/27 – Nondisclosure, Confidentiality, and Privilege
- 765 ILCS 720/1 – [Repealed Effective 1/1/2025]
- 770 ILCS 95/7.10 – Late Fees
- 420 ILCS 46/26 – Disclosure of radon hazard to current and prospective tenants
- 810 ILCS 5/3-806
FAQs
An Illinois sublease agreement is a legal contract that allows a tenant (sub-lessor) to rent out all or a portion of their leased property to a third party (sub-lessee) in exchange for regular payments. The sub-lessor acts as the landlord to the sub-lessee for the duration of the original lease.
Yes, in Illinois, tenants generally need to obtain explicit written permission from their landlord to sublet their rental property, unless the original lease allows subletting or is silent on the matter. If the lease prohibits subletting, doing so without consent would breach the original lease.
In Illinois, sublessors may be subject to a 6% state hotel tax and additional local taxes if they sublet for less than 30 days. Some areas, like Lake County, prohibit short-term rentals altogether, so it’s important to check local regulations.
An Illinois sublease agreement typically includes the names of the parties, rent details, term dates, rental unit location, liability clauses, security deposit information, and a smoking policy. It should also include a section for landlord consent if required.
No, in Chicago, landlords are required to approve reasonable sublease requests from tenants, regardless of the lease’s terms. This means that while landlords can evaluate the qualifications of a potential subtenant, they cannot unreasonably deny a request.
In Illinois, the security deposit for a sublease is held by the sub-lessor, not the landlord. The landlord must return the security deposit within 45 days after the subtenant vacates the unit, unless there are deductions, in which case it must be returned within 30 days.
In Illinois, sublessors must provide subtenants with a five-day written notice to pay rent or vacate. Additionally, they must give notice of intent not to renew the sublease or original lease, with varying notice periods depending on how often rent is paid.
Yes, subletting is legal in Illinois. Landlords cannot legally prevent tenants from subleasing unless the original lease explicitly prohibits it, which can be challenged in court.