The current year has been unpredictable and challenging. There are many new laws and ordinances that have been passed these past few months that Landlords must be aware of. The new Chicago ordinance under the CRLTO has added another layer to that unpredictability in the real estate investor market here in Chicago.
As of July 2020, here are the new guidelines you must follow to stay in compliance as a Landlord in Chicago. If you are currently working with a Property Manager, make sure they are aware of these rules to ensure that you don’t find yourself in a legal battle with your tenants.
Notice To Not Renew A Lease - Landlords must provide:
60 days of notice to terminate your lease if you have lived in your apartment for more than six months but less than three years
120 days of notice to terminate your lease if you have lived in your apartment for more than 3 years
These changes will affect our business, along with the businesses of many other investors that we work closely with who are purchasing properties that are occupied with tenants. These new guidelines must be followed if there is the intention to remove an existing tenant from the property.
Other changes under this new Fair Notice Ordinance are as follows.
Raising Rents - Landlords must provide:
60 days of notice to raise your rent if you have lived in your apartment for more than six months but less than three years
120 days of notice to raise your rent if you have lived in your apartment for more than three years
These rules apply to all tenants, whether they have a written year-long lease or an informal month-to-month lease. However, it does not apply if the eviction process has begun due to nonpayment of rent or due to other lease violations.
If a landlord fails to give the required notice, tenants have the right to remain in the property for the required notice period or pay the prior rent for the required notice period.
There are many Landlords and even Property Managers that are not aware of this recent change, so if you are working with a Property Manager and they are not aware, then it might be time to find a new property manager. To see the official notice check out the City Of Chicago’s website.
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