If you’re a landlord in Illinois, there’s a new piece of legislation you cannot afford to ignore: 765 ILCS 705/25, effective January 1, 2025. Commonly known as the flood disclosure requirement, it mandates that every landlord provide a written disclosure about flood risks—even if you have no records or knowledge of any prior flooding. If you skip this step (or figure “I don’t know” means I don’t have to disclose), you could land in hot water—literally and legally.
1. What Exactly Is Changing?
Previously, the assumption was: if your property’s in a flood zone or has a history of flooding, you should disclose. Now, there’s a twist: under the new law, you cannot just omit the disclosure because you lack information. Instead, you must include the required statement and note that you either do—or do not—have knowledge of any flood-related issues.
Translation: This is no longer optional. Regardless of your property’s location or flood history, you must include a formal flood disclosure in your lease agreements.
2. Why You Should Care
Legal Compliance
Failing to provide the flood disclosure—even if you truly don’t know your property’s flood status—can open you up to legal and financial penalties. This is not a corner you can cut without risking serious repercussions.Tenant Relationships
Transparency is a plus. Even if you have no flood data to share, showing that you comply with the law and disclose openly can foster trust. It underscores your professionalism and commitment to tenant well-being.Market Reputation
With online review platforms, word spreads fast. Tenants who discover that you withheld or skipped disclosures can tarnish your credibility. Compliance helps maintain a strong, positive standing in your community and industry.
3. The Nuts and Bolts of Compliance
Provide Written Notice
The disclosure must be a written statement given to each tenant before they sign the lease. If you have a boilerplate lease, integrate the flood disclosure into that document or attach it as an addendum.Acknowledge (or Deny) Knowledge
The law requires you to check boxes or clearly state whether (a) the property is in a FEMA Special Flood Hazard Area, and (b) if it has experienced flooding in the last 10 years.- If you truly do not know, you must explicitly say so (e.g., “[ ] is not aware of the property being located in a flood zone.”).
- If you do know, be accurate. Misrepresenting or withholding known flood history could land you in bigger trouble.
Document Everything
Once signed, keep a copy of the lease and disclosure. If there’s ever a dispute, you’ll need proof that you provided the required information and that the tenant acknowledged it.
Pro Tip: Verify whether your local jurisdiction (e.g., city or county) has stricter requirements. When state and local regulations conflict, the rule that offers greater tenant protection typically takes precedence.
4. What If You’re in a High-Risk Flood Zone?
If you already know the property is in a flood zone or has flooded before, this new law is a wake-up call to:
Review Your Insurance
Standard property insurance doesn’t always cover flood damage, and most tenant insurance doesn’t, either. Encourage tenants to look into FEMA’s National Flood Insurance Program or private flood coverage for peace of mind.Consider Preventative Measures
Flood barriers, sump pumps, regular maintenance of drainage systems—small proactive steps can spare you from massive repair bills and lawsuits down the road.Stay Vigilant
Flood zones and floodplain maps can change over time due to environmental factors. It’s good practice to review FEMA maps annually and update your disclosure, if needed.
5. Don’t Underestimate the Power of Transparency
Although it can feel like an extra task on your to-do list, flood disclosure actually works in your favor by:
- Building Trust
Tenants who feel informed and safe are more likely to renew their leases and treat your property with care. - Minimizing Surprises
Even if your property hasn’t flooded in a decade, freak storms happen. If tenants know the risk, they’re better prepared—less finger-pointing if a worst-case scenario occurs. - Protecting You Legally
In the unfortunate event of a flood, being able to show that you disclosed all relevant information can protect you from claims of negligence or misrepresentation.
6. Final Thoughts: Stay Afloat, Stay Compliant
The new flood disclosure law is more than just fine print—it’s a legal requirement with real teeth. Even if your property has never flooded or you have no formal documentation, you still need to fill out the disclosure. It’s a simple step that can save you from tidal waves of legal and financial complications.
Don’t let this new requirement sink your rental business:
- Provide a written disclosure—signed by both parties—before lease signing.
- Accurately state what you do (or do not) know about flood risks.
- Keep good records.
- Refresh your knowledge on FEMA maps and local zoning rules.
By being proactive and transparent, you’ll keep your real estate investments above water—financially and literally!
Disclaimer: This blog post is informational only and does not constitute legal advice. Laws can vary by municipality and may be subject to further change. If you’re unsure how the new flood disclosure rules apply to your specific property, consult a qualified attorney or local housing authority for personalized guidance.
