Mobile Homes: Rules about Leases in Chicago

The Illinois Mobile Homes Landlord and Tenant Act sets clear rules for leases to protect tenants and park owners. Here’s what you need to know:

Lease Requirements:

• Written Agreement: All leases must be in writing and shared with tenants before they move in. 765 ILCS 745/6.
• Tenant’s Right to Cancel: A tenant can cancel a lease within 3 business days of signing it unless they waive this right or take possession of the lot or mobile home. Any security deposit or rent must be refunded within 10 days of cancellation. 765 ILCS 745/6(g). 
• Effect of Unsigned Lease: If the tenant does not sign a lease that the park owner has provided but continues living in the mobile home and paying rent, the lease is automatically accepted as if signed. 765 ILCS 745/7.

Lease Term:

• Minimum Lease Term: Park owners must offer a lease for at least 24 months unless the tenant agrees to a shorter term. 765 ILCS 745/6(a). 
• Month-to-Month Term: Month-to-month agreements are allowed if tenants sign a statement acknowledging they were offered a longer lease but chose month-to-month instead. 765 ILCS 745/6(f).
• Breaking the Lease: If the tenant ends their lease early, the park owner can seek damages but must deduct any money earned from re-renting the lot. 765 ILCS 745/6(h).
• Automatic Renewal: Leases automatically renew unless: 
  • The tenant gives 30 days' written notice that they will move out.
  • The park owner provides 30 days’ written notice of non-renewal with valid reasons (e.g., unpaid rent, rule violations, or health/safety concerns). 765 ILCS 745/8. 
  • The park owner plans to close all or part of the park. 
  • The park owner wants to change the lease terms beyond just rent. In this case, they must follow specific legal procedures. 
• Holding Over After Lease Ends: If the tenant stays after the lease expires without letting the park owner know or getting permission, they may have to pay up to twice the monthly rent for each extra day they stay. 765 ILCS 745/23.

Lease Prohibitions

No lease can contain provisions that:

• Charge a penalty fee for late rent without allowing at least 5 extra days for payment. 765 ILCS 745/12.
• Require a security deposit greater than one month’s rent. 765 ILCS 745/12.
• Charge any fees not listed in the lease. 765 ILCS 745/12.
• Allow the park owner to move a tenant’s mobile home to a different lot during the lease term. 765 ILCS 745/12.
• Waive a tenant’s right to a trial by jury. 765 ILCS 745/12.
• Require a tenant to purchase a mobile home from the park owner or only buy from them during the lease term. 765 ILCS 745/12a.
• Include unfair or illegal terms, such as waiving tenant rights or forcing tenants to buy goods or services from the park owner. 

If a lease violates the Act, then that part is void. 765 ILCS 745/10. 

Rent Increase:

• Tenants must receive 90 days’ written notice for any rent increase. 
• The tenant has 30 days to reject or accept the rent increase. If they refuse, the tenant needs to notify the landlord the day that they will vacate before the rent increase starts. 765 ILCS 745/6(d). 
• The lease may include one scheduled rent increase between the first and second year. 765 ILCS 745/6(e). 

Temporary Tenants:

• If a tenant temporarily leaves due to illness or disability, a relative may live in the home for up to 90 days with proper documentation. 765 ILCS 745/6.3.
  • Documentation by a licensed physician within the past 60 days. 
  • Temporary occupant meets all qualifications. 
  • Temporary occupant submits application at least 5 days before moving in. They need to confirm that they meet community requirement. 
• After 90 days, the temporary occupant needs to show that they can pay the costs like rent and utilities. 

Park Closures

• If a park is closing, tenants must receive at least 12 months’ written notice. (765 ILCS 745/8.5)
• If a tenant’s lease expires before 12 months, they will be given a month-to-month lease at the same rent until the 12-month period ends.
• If the tenant has more than 12 months left on their lease, they can stay until the lease ends.
• The Illinois Department of Public Health needs to help create a relocation plan. 765 ILCS 745/14.2.