Vendor Portal
Author: Mark Ainely | Partner GC Realty & Development & Co-Host Straight Up Chicago Investor Podcast
Tim and I talked about whether Mayor Brandon Johnson’s PRO proposal is losing momentum, new Section 8 inspection standards that could eliminate some of the frustrating automatic failures landlords deal with, and finished with a new round of “Would You Rather?” questions for rental property owners.
Is PRO Dying?
After weeks of discussion around PRO and the competing FAIR ordinance, the Chicago City Council did not vote on either proposal at its September 23 meeting. Both ordinances were deferred, and they remain pending before the Council. The City Clerk now lists both for possible consideration at the September 29 meeting. Chicity Clerk
Does that mean PRO is dead?
Not necessarily, but the conversation has changed.
The version of PRO that advanced out of committee had already lost one of its most controversial provisions: just cause non-renewal and the associated relocation payments were removed. FAIR also advanced separately as a competing approach to updating Chicago’s landlord-tenant rules. Chicago Association of REALTORS®
In the episode, Tim and I talked about the possibility that budget season and other City Council priorities could continue slowing everything down.
There are still important differences between PRO and FAIR, including how a rental registry would work, which department would enforce the rules, fees, disclosures, and how smaller landlords would be treated.
My biggest concern remains adding another layer of administration without addressing the basic problem that both landlords and tenants keep talking about: housing is expensive.
Insurance is expensive. Property taxes are expensive. Maintenance is more expensive. Utilities continue going up.
Those costs eventually become part of the rent.
Whatever happens with PRO and FAIR, Chicago landlords should continue following this closely because the final version could add new registration, disclosure, notice, and compliance requirements.
Section 8 Changes
The second major topic was something that could actually make Section 8 inspections more practical.
HUD is moving federally assisted housing toward the NSPIRE inspection standards, with the goal of focusing more heavily on health and safety rather than minor cosmetic problems.
That is important because landlords have all heard stories about units failing inspections for issues that have very little impact on whether someone can safely live there.
Under the changes Tim discussed, voucher inspections would still operate as pass or fail, but landlords could see more flexibility around minor issues.
For example, a cracked window may not automatically fail if it does not present a cutting or safety hazard. Cosmetic paint issues may be treated differently depending on the age of the property and whether there is an actual health concern.
Smoke detectors, carbon monoxide detectors, and genuine safety issues remain a different story.
We also talked about the difference between project-based housing and individual voucher properties. Project-based properties can use a scoring system where the building receives an overall inspection score rather than automatically failing because of one minor item.
For most individual Chicago landlords accepting vouchers, the bigger benefit should be clearer standards and less inspector discretion.
Tim gave a great example: one of his properties recently failed because the inspector said there was “not enough counter space.”
What does that mean?
Five more inches? Another cabinet? An entirely different kitchen?
Those are the subjective failures that make the inspection process frustrating.
For landlords, there is also a practical decision to make when you disagree with an inspection.
If fixing the issue costs $20 and fighting it delays a new tenant by three weeks, just fix it.
If the inspector is asking for a major repair that does not appear to be required, that is when it may make sense to challenge it.
The goal is not winning an argument. The goal is getting a safe property approved and the tenant moved in.
Would You Rather?
We finished with some quick landlord “Would You Rather?” questions.
Boiler building or individual furnaces?
Tim picked individual furnaces for management.
A boiler may be relatively simple mechanically, but controlling temperatures across an older building can create constant complaints. One tenant is hot, another is cold, and the landlord is paying the gas bill.
Six one-bedroom apartments or six three-bedroom apartments?
This one depends entirely on location.
In Lincoln Park, Tim would rather have one-bedrooms because of the demand from younger professionals and renters living alone.
In Auburn Gresham, he would rather have three-bedrooms because of the demand from families.
That is a good reminder that unit mix should match the neighborhood.
Flat roof or shingle roof?
Flat roof.
The key is maintenance. Tim recommends inspecting and coating flat roofs regularly rather than waiting for a $30,000 or $40,000 replacement.
Garbage disposal or no garbage disposal?
This one was easy: no garbage disposal.
They create maintenance calls, tenants regularly misuse them, and almost nobody decides not to rent an apartment because it does not have one.
And if you are wondering what Tim considers even worse than a garbage disposal in a rental property?
A jetted tub.
Questions We Answer in This Episode
Q: Is Chicago’s PRO ordinance dead?
A: No. The City Council deferred action on PRO and FAIR, so both remain pending as of this blog.
Q: Are Section 8 inspection standards changing?
A: Yes. The new inspection approach discussed in the episode puts more emphasis on actual health and safety problems instead of treating every cosmetic issue the same.
Q: Should landlords fight every Section 8 inspection failure?
A: No. If the repair is inexpensive and delaying the tenant will cost more than fixing it, the practical move is often to make the repair.
Q: Are individual furnaces easier to manage than boilers?
A: Tim prefers individual furnaces because residents control their own temperature and the landlord avoids many of the complaints associated with centralized boiler heat.
Show Notes and Timestamps
00:07 Week 36 of Chicago Landlord Secrets
01:55 What happened with PRO and FAIR at City Council
03:16 Why rents continue getting more expensive in Chicago
05:21 Bad housing conditions and existing code enforcement
10:31 Why PRO did not receive a City Council vote
16:35 New HUD and Section 8 inspection changes
18:45 Cosmetic issues versus real health and safety failures
21:45 Moving from HQS toward NSPIRE inspections
24:20 When landlords should challenge an inspection failure
36:29 Would You Rather: boilers, unit sizes, roofs, and garbage disposals
Key Takeaways for Chicago Landlords
PRO and FAIR remain pending after the September 23 City Council meeting.
The most controversial just cause and relocation payment provisions have already been removed from the revised PRO proposal.
Section 8 inspections are moving toward greater emphasis on real health and safety concerns.
Landlords should consider the cost of fighting an inspection versus simply correcting an inexpensive issue.
Boiler versus furnace, bedroom count, roof type, and other property decisions should always be evaluated based on the specific property and neighborhood.
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
