Vendor Portal
Author: Mark Ainely | Partner GC Realty & Development & Co-Host Straight Up Chicago Investor Podcast
Tim and I hit week 20 of Chicago Landlord Secrets, and it’s honestly kind of wild we’ve done this 20 weeks in a row. No batching episodes. No disappearing. If we don’t show up, there’s no show. And this week had plenty to talk about.
Illinois wrapped its session, the big Build Act got denied, and now we’re watching smaller “spin-off” bills pop up that could still move pieces of it forward. Then we pivoted into Chicago because Mayor Johnson rolled out proposals that would change how rentals operate in the city, including a citywide registry, per-unit fees, and a fresh push around “just cause” eviction rules.
This episode was policy heavy, but I’m going to land it where we always should land it. Regulations are a pain. But if you understand the game and you can operate inside the rules, that complexity becomes a moat. That’s where opportunity lives.
What we talked about in this episode
Illinois session ended and the Build Act was denied
Tim kicked things off with the update that the state’s general session ended and Pritzker’s Build Act was denied. That was the big push to reduce local control over zoning decisions for multifamily housing.
But the story didn’t end there. The strategy now looks like this: instead of one big bill with a hundred parts, they try smaller bills one by one and see what sneaks through.
Illinois laws proposed after the Build Act denial
We walked through several bills that were discussed as the “next wave” after Build didn’t make it.
A bill from Stadelman (Rockford)
This would prohibit a landlord who hired a broker or leasing agent from passing those fees onto a tenant. We both said this doesn’t feel like a real Illinois issue today and New York City is the only place we’ve really heard of that being a normal practice.
SB 330 (Guzman, Chicago)
This would prohibit discrimination against survivors of domestic, sexual, or gender-based violence in real estate transactions. I don’t see a downside here and I’m fine with this direction.
SB 331 (Ventura, Joliet)
This would impose annual fees on private equity firms who own more than 10 single family homes or 8 multi-unit buildings, and it also introduces a 90-day waiting period from listing to purchase.
The big question we raised was what “private equity” actually means here. As written, it likely doesn’t affect most everyday investors, but wording changes are where things get scary. One word turns into a completely different law.
SB 332 (Simmons, Chicago)
This would grant a right of first refusal to residents when a residential property is put up for sale, and there’s talk of pairing it with state funding to support resident purchases.
We were blunt. This one is dangerous because it slows down transactions and it creates a huge incentive for landlords to empty buildings before selling to avoid the process. That means displacement and vacancy, which is the opposite of what these bills claim they’re trying to fix.
SB 608
This would establish that housing authorities and owners of subsidized housing can’t mandate work requirements or place time limits on residents. We talked about it more as a political reaction to national headlines than something that directly changes landlord operations, but it’s part of a broader trend of making programs harder to exit.
SB 635 (Sara, Chicago)
This would allow faith-based organizations to build affordable multi-unit housing by right on land they own. I’m fine with this. If it adds housing stock, that’s moving in the right direction.
The problem nobody wants to solve directly
We said it plainly. If Illinois wants affordability, the fastest path is:
Build more housing.
Make evictions faster.
Everything else is a workaround that creates second and third order problems.
How landlords can have a voice
I want to repeat what I said in the live, because this is where people feel powerless and they don’t have to.
If you want to track this stuff and have a voice through groups that already fight these battles, the list we talked about includes:
MBOA
CAR (Chicago Association of Realtors)
IAR (Illinois Association of Realtors)
CAA (Chicago Apartment Association)
BOMA (more commercial but still influential)
Even if you never show up to a meeting, getting on the newsletters and understanding what’s moving is a competitive advantage.
Chicago RTLO changes proposed by Mayor Johnson
Then we moved into Chicago because Johnson rolled out proposals that would change rental operations in the city.
Rental registry and annual fees per unit
The proposal would establish Chicago’s first citywide rental registry funded by an annual landlord fee, discussed as roughly $20 to $60 per unit.
The fee isn’t the scary part. The scary part is the operational reality. If this becomes another inspection-heavy system, you risk CHA-style delays on market rentals. That’s the nightmare. Even if the idea sounds reasonable in theory, the city has to execute it, and execution is where things break.
Just cause eviction and relocation assistance
This proposal would require a “valid reason” for evictions and non-renewals, and it could create relocation assistance obligations depending on the reason.
We talked about how this reduces flexibility for owners and creates incentives for workarounds like pushing rent until someone leaves or emptying buildings before selling. It also adds fuel to tenant organizing efforts because it becomes another lever tenants can pull.
Junk fee ban, transparency, and banning application fees
This Chicago proposal goes further than the state in a few ways, including prohibiting application fees.
My view on this is straightforward. If you make it free to apply, you don’t get better tenants. You get more unqualified applicants taking shots because there’s no downside. That creates more work, more screening time, and it slows leasing. And landlords don’t “eat” that cost. It becomes rent pressure.
The proposal also mentions disclosing algorithmic pricing tools. We talked about how silly that line can get because Zillow is an algorithm. A broker reviewing comps is basically an algorithm too. The real issue is transparency in the full monthly cost, not pretending pricing isn’t data-driven.
A new Bureau of Rental Housing Services
The proposal includes creating a new city agency designed to enforce tenant protections, provide emergency eviction assistance, and regulate compliance.
Our skepticism here was simple. Chicago already has systems that struggle to keep up with volume. Creating a new department doesn’t automatically solve the constraint, especially if the underlying bottleneck is capacity, staffing, routing, and execution.
Investor opportunities and why this still matters
Even though we spent a lot of time on regulations and proposals, I ended on the same point I believe in every week.
This river of regulation probably isn’t stopping.
That means investors who understand the rules and operate correctly build a moat.
It’s not fun, but it is a competitive advantage.
Institutional investors already avoid Chicago because eviction timelines and regulations break their model. That leaves opportunity for local investors who understand how to play the game or who hire property managers who already know it.
So yes, it’s a pain. But if you learn the game, it can still be a huge advantage.
Questions We Answer in This Episode
Q: Did the Illinois Build Act pass?
A: No. It was denied when the state session ended, but pieces are being reintroduced as smaller bills.
Q: What’s the scariest Illinois proposal discussed?
A: Right of first refusal, because it slows transactions and incentivizes landlords to empty buildings before selling.
Q: What Chicago RTLO-style changes is Mayor Johnson proposing?
A: A citywide rental registry with per-unit fees, just cause eviction rules with potential relocation assistance, banning application fees, and creating a new rental housing enforcement bureau.
Q: What actually fixes affordability?
A: More housing supply and faster evictions. Everything else is solving smaller symptoms while ignoring the main constraint.
Q: Where is the opportunity for investors?
A: Regulations create a moat. If you understand the rules, follow them, and operate efficiently, you gain advantage over out-of-market investors and less-prepared landlords.
Show Notes and Timestamps
00:00 Week 20 and why this show is a different commitment
02:00 Illinois session ended and the Build Act was denied
05:00 Smaller “Build” bills now being introduced one by one
10:00 Right of first refusal concept and why it’s dangerous
16:00 Subsidized housing work requirement conversation
19:00 Faith-based housing by-right proposal
23:00 How landlords can track bills and have a voice
28:00 Chicago rental registry proposal and per-unit fees
34:00 Just cause eviction and relocation assistance discussion
39:00 Application fee ban and algorithmic pricing disclosure
44:00 Investor moat and why opportunity still exists here
Key Takeaways for Chicago landlords and investors
The Build Act is dead, but pieces may return through smaller bills.
Right of first refusal laws can backfire by creating more vacancy and slowing transactions.
Chicago RTLO-style proposals could increase compliance and reduce landlord flexibility.
The real affordability fix is more housing and faster evictions, not more departments and fees.
Regulations create a moat, and investors who learn the rules or hire pros can still win long-term.
Guest Information
Mark Ainley
Founder & Partner – GC Realty & Development
Podcast Co-Host – Straight Up Chicago Investor
Tim Harstad
Founder – Chicago Style Management
Because finding good tenants and property management shouldn’t feel like online dating.
Dear Investor,
If you are an investor in either the city or suburbs of Chicago, I would love to speak with you about how we can help you on your real estate journey. At GC Realty & Development LLC, we help hundreds of Chicagoland real estate owners and brokers each year manage their assets with both full service property management and tenant placement services.
We understand that every investor’s goals are unique, and we love learning about each client’s individual needs. If there is an opportunity to help you buy back your time by managing your rental property or finding quality tenants, please check us out.
Best Investing,
Founder, Partner, Podcast Co-Host, and Investor
