Cal. Civ. Code § 2
A rent concession is made, within the meaning of this Act, when, in case of a written lease of real estate or a part thereof, the lessor before or at the time the lease or any agreement therefor is entered into, and in consideration of such lease or agreement therefor, directly or indirectly, gives, or agrees or promises to give, to the lessee, without express mention thereof in the lease, any of the following: (1) any credit upon the rent reserved by the lease between the parties, or rebate of such rent or any part thereof after payment thereof by the lessee, or (2) the right, privilege or license to occupy the leased premises for a period other than the term created by the lease, rent free or for a rent less than the average rent fixed by the lease for the entire term, or (3) any other valuable thing, right or privilege. Repairing and decorating the leased premises by the lessor shall not be deemed a rent concession. An agreement by a lessor to waive any of the terms or conditions of the lease other than those relating to the payment of rent shall not be deemed a rent concession
Operative Text
A rent concession is made, within the meaning of this Act, when, in case of a written lease of real estate or a part thereof, the lessor before or at the time the lease or any agreement therefor is entered into, and in consideration of such lease or agreement therefor, directly or indirectly, gives, or agrees or promises to give, to the lessee, without express mention thereof in the lease, any of the following: (1) any credit upon the rent reserved by the lease between the parties, or rebate of such rent or any part thereof after payment thereof by the lessee, or (2) the right, privilege or license to occupy the leased premises for a period other than the term created by the lease, rent free or for a rent less than the average rent fixed by the lease for the entire term, or (3) any other valuable thing, right or privilege. Repairing and decorating the leased premises by the lessor shall not be deemed a rent concession. An agreement by a lessor to waive any of the terms or conditions of the lease other than those relating to the payment of rent shall not be deemed a rent concession.
Under 765 Ill. Comp. Stat. 730 § 2, a 'rent concession' occurs when a landlord provides a tenant with an undisclosed benefit—such as a rent credit, rebate, free occupancy period, or other valuable item—in connection with a written lease but without stating that benefit expressly in the lease itself. The law carves out two exceptions: a landlord's work to repair or decorate the premises does not count as a rent concession, nor does a landlord's agreement to waive non-rent lease terms. The provision essentially defines what qualifies as a hidden or off-lease financial benefit so that the broader Act can regulate or require disclosure of such arrangements.
Plain English — not legal advice.
Property owners and managers operating under written leases in Illinois should be aware that 765 Ill. Comp. Stat. 730 § 2 defines a rent concession broadly to include undisclosed credits, rebates, free-rent periods, or other valuable benefits given to a tenant in connection with a lease. Compliant operators generally ensure that any such benefit—whether a month of free rent, a rent reduction, or a comparable incentive—is expressly stated within the lease document itself rather than handled through a side agreement. Routine repairs, decorating work, or waivers of non-rent lease conditions are explicitly excluded from this definition and do not trigger the Act's concession requirements.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 765 Ill. Comp. Stat. 730 § 2, tenants have an interest in knowing that Illinois law specifically defines arrangements where a landlord quietly provides a financial benefit—like a rent credit, rebate, or free-occupancy period—outside the written lease as a regulated 'rent concession.' If a tenant believes a landlord has made such an undisclosed concession in connection with their lease, that fact may be relevant to rights and obligations under the broader Act. Tenants seeking to understand how this definition affects their specific lease situation may consider consulting a tenant-rights organization or reviewing resources provided by Illinois legal aid services.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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