Beginning in 2025, property owners in Illinois are required to disclose new information to potential tenants. The Illinois Legislature has passed Public Act 103-0754, Sec 25, effective January 1, 2025 that requires property owners to disclose to potential tenants if a property is located in a FEMA Flood Hazard area, or if a specific unit has flooded previously. This disclosure must be made in writing prior to signing the lease agreement. Here’s everything you need to know about Illinois flood disclosure laws for leases.

What is the Illinois Flood Disclosure Law?

The law is part of the broader Illinois Real Property Disclosure Act, which mandates disclosure of other environmental hazards, such as radon and lead. Flooding is treated as a significant environmental risk due to the potential for property damage, personal injury, and the broader impacts on a tenant’s living conditions.

The Illinois Flood Disclosure Law requires that landlords or property owners disclose certain information about flooding risks when leasing residential properties. This law applies to residential leases in areas that are susceptible to flooding or have been affected by floods in the past 10 years. Its primary purpose is to ensure that tenants are aware of any flood risks before committing to a rental property.

When Is a Flood Disclosure Required?

Flood disclosure is required when certain conditions exist, such as:

• Location in a Floodplain: If the property is located within a federally designated floodplain or flood hazard area, the landlord is required to disclose this information. These areas are identified by FEMA (Federal Emergency Management Agency) through the National Flood Insurance Program (NFIP).
• History of Flooding: If the property has experienced flooding within the last ten years, the landlord must inform potential tenants. This could include instances where the property has been affected by floods, even if it wasn’t in a designated floodplain at the time.

Consequences of Non-Disclosure

If a landlord fails to provide the required flood disclosure, they may be subject to legal action from the tenant. Potential consequences include:

• Lease Termination: If a tenant finds out about the flooding risks after moving in, the tenant may terminate the lease agreement without penalty, by giving written notice of termination to the landlord no later than the 30th day after a tenant becomes aware of the landlord’s failure to disclose.
• Damages: Tenants may be entitled to financial compensation for any damages or losses that occur due to undisclosed flood risks. If flooding occurs that results in damage to the tenant’s personal property, affects the habitability of the leased property, or affects the tenant’s access to the leased property, the tenant may:
  • (1) terminate the lease by giving written notice to the landlord no later than the 30th day after the flood occurred and the landlord shall return all rent and fees paid in advance no later than the 15th day after the tenant gave notice; and
  • (2) bring an action against the landlord of the property to recover damages for personal property lost or damaged as a result of flooding.

Why Is Flood Disclosure Important?

Floods can cause significant damage to property and pose a serious risk to the safety and well-being of tenants. For tenants, understanding the flood risk helps them make informed decisions about where to live. For landlords, providing flood disclosures not only ensures compliance with the law but also builds trust with tenants. By being transparent about potential hazards, landlords demonstrate their commitment to tenant safety and reduce the risk of future legal disputes.

Tenants’ Rights and Responsibilities

While landlords are required to disclose flood risks, tenants also have rights and responsibilities when it comes to managing flood risks. Some of these include:

• Insurance: Tenants should consider purchasing renters’ insurance that includes coverage for flood-related damage, as landlord insurance may not cover personal belongings.
• Evacuation Plans: If a tenant is living in a flood-prone area, it’s important for them to have an evacuation plan in place and to keep emergency supplies (like food, water, and medications) on hand.

Definitions Used in Section 25

• “Flood” and “flooding” mean a general or temporary condition of partial or complete inundation of a dwelling or property caused by: (1) the overflow of inland or tidal waves; (2) the unusual and rapid accumulation of runoff or surface waters from any established water source such as a river, stream, or drainage ditch; or (3) rainfall.
• “Lower-level unit” means any garden level unit, basement level unit, or first floor level unit.

Why Choose Three Pentacles, PLLC for Your Property Management Needs?

When it comes to managing a rental property, having a trusted partner by your side can make all the difference—especially when dealing with complex matters like flood disclosures and tenant safety. That’s where Three Pentacles, PLLC stands out. Here’s why you should trust us with your property management needs:

1. Expert Knowledge of Illinois Laws: Our team is well-versed in the nuances of Illinois’ flood disclosure laws and other state regulations. We ensure your property is in full compliance, protecting you from legal liabilities and providing peace of mind to your tenants.
2. Proactive Property Management: At Three Pentacles, PLLC, we don’t just wait for issues to arise—we take proactive steps to manage risks. We help you understand the potential flood risks associated with your property, implement preventative measures, and keep tenants informed and safe.
3. Dedicated Tenant Relationships: We believe that open communication is key. We ensure that tenants receive transparent, timely information about their rental, including flood risks, maintenance issues, and more. By fostering strong, positive relationships with tenants, we help you maintain low turnover rates and a well-maintained property.
4. Comprehensive Services: From handling lease agreements to routine inspections and repairs, we offer comprehensive property management services. We can guide you through flood insurance options, manage flood mitigation measures, and keep your property in optimal condition—reducing the risk of damage and increasing its long-term value.
5. Tailored Solutions: We know that each property is unique. Our team works closely with you to create a customized property management plan that suits your needs, goals, and the specific challenges of your location—whether that’s dealing with flood-prone areas or ensuring compliance with local housing regulations.

Get Started Today!

If you’re ready to simplify your property management process and ensure compliance with all relevant laws—including flood disclosures—Three Pentacles, PLLC is here to help. Contact us today for a consultation and discover how we can optimize your rental property experience while protecting your investment.

Let’s build a stronger, safer future for your rental property—together.