Homestead Exemption for rental properties in Champaign/Urbana IL

[Shao Ya Xu]

Hi, I was recently advised by my lawyer that I can include this Real Estate Tax Liability section in my lease to get the Homestead Exemption for my rental properties in Champaign/Urbana. I am on the fence of should I include it in my lease or not. Do anyone have success claiming the exemption? What do you need to bring to the City to file for the exemption? Just the signed lease or do you need some other form(s) signed by the tenant as well? Also, how do you explain clearly to the tenant to ease their concerns?

Thank you in advance!

Below are the section my lawyer advised me to include in my lease:

1. REAL ESTATE TAX LIABILITY. Notwithstanding anything herein to the contrary, Tenant shall be liable for the payment of real estate taxes with respect to the residence in accordance with the terms and conditions of Section 15-175 of the Property Tax Code (35 ILCS 200/15-175). The permanent real estate index number for the premises is (insert number), and, according to the most recent property tax bill, the current amount of real estate taxes associated with the premises is (insert amount) per year. The parties agree that the monthly rent set forth above shall be increased or decreased pro rata (effective January 1 of each calendar year) to reflect any increase or decrease in real estate taxes. Tenant shall be deemed to be satisfying Tenant's liability for the above mentioned real estate taxes with the monthly rent payments as set forth above (or increased or decreased as set forth herein).