Understanding Leases: Unenforceable Lease Terms under Evanston RLTO

The Evanston Residential Landlord and Tenant Ordinance (RLTO) recognizes that landlords have superior bargaining power over tenants when it comes to negotiating rental housing. The RLTO prohibits landlords from enforcing certain clauses that they put in leases. A tenant may be able to recover actual damages sustained because of the enforcement of a prohibited provision. If the landlord attempts to enforce a prohibited provision from a lease, the tenant may recover two months’ rent as damages under the Ordinance.

For dwelling units located in Evanston and covered by the RLTO, the following types of lease clauses may not be enforced:

• Waiver Clauses: Any clause that WAIVES, or forgoes, the RIGHTS, remedies, or obligations of the Ordinance is unenforceable. For example, the landlord cannot waive his obligation to maintain the premises in compliance with the building code. Tenants can use the remedies provided in the Ordinance, such as repair and deduct, even if the lease says they cannot.
• Confession Clauses: Any clause that authorizes any person to CONFESS JUDGMENT on a claim arising out of the rental agreement is unenforceable. A confession of judgment clause allows the landlord to go into court, without notifying the tenant, and obtain a judgment for rent or possession against the tenant by showing the judge the lease clause in which the tenant “admits” that the landlord deserves to obtain the judgment. State law also renders such clauses null and void in consumer transactions.
• Liability Limitation Clauses: Any clause that LIMITS the legal LIABILITY of the landlord or Tenant is unenforceable. The landlord cannot limit his or her responsibility for injury or damage suffered by the tenant due to the landlord’s intentional or negligent actions. State law, as well as the Ordinance, prohibits landlords from using these clauses.