Understanding Disclosures: Landlord Must Disclose Heat Utility Costs

Section 5-16 of the Municipal Code of Chicago contains important regulations that property owners and agents must follow when leasing residential dwelling units.

Lease Disclosure Requirements:

When a tenant is directly responsible for paying the heat bill based off an individual meter, the owner or agent must provide written disclosures to the tenant or applicant. These disclosures should include information about the tenant's responsibility for heating costs and the annual cost of heating based on energy consumption over the previous twelve months. The tenant or applicant must acknowledge receipt of these written disclosures.

Exceptions to Lease Disclosure Requirements:

1. If a tenant continues living in a rental unit where they were previously responsible for paying the cost of heating, there is no requirement for new disclosures.
2. For condominiums, cooperatives, or other dwelling units where heat is provided centrally by the landlord or building management, and energy costs are shared and billed based on factors like floor space, the landlord does not need to disclose the heat bill.

Acquiring Disclosed Information and Validity:

Landlords or their agents can request the information from the utility company supplying the dwelling unit, or they can acquire it from an online website. The utility company is required to provide the information within two weeks of receiving a proper written request.

The information obtained from an online website or provided by the utility company is considered valid for disclosure purposes for six months.

Penalties for Failing to Provide Information or Falsifying Information:

A landlord or anyone who falsely claims to be an owner may be fined up to $500 for each offense, as stated in Section 5-16-070 of the Municipal Code of Chicago.