In the 1980s the City Of Chicago passed the Residential Landlord and Tenant Ordinance to clean up the slumlords in the city of Chicago. From this ordinance, it created many things that Landlords even today 40 years later are not aware of. Below are some of the main issues you must be aware of as a Realtor or Landlord in the city of Chicago because if you are not the consequences can be expensive.
Security Deposit - There is so much regulation around the collection of security deposits in the city of Chicago that most Landlords have found a way to not collect a security deposit from a new tenant. Many landlords collect a non refundable move in fee which is not a “deposit” and cannot be a larger amount than 50% of the monthly rent. The requirement to pay interest on the security deposit and the time frame you have to do so each year is something I always see Landlords get in trouble on.If you are collecting a security deposit then you must learn exactly what to do or hire the right people to do it for you.
Disclosures - Your lease you must be using will have many required disclosures including utility costs, security deposit interest, bed bug disclosures, and many other specifics. WIthout these proper disclosures you are opening yourself up to great liability.
Lease Framework - The lease you use is super important because there is specific language you must have to be compliant with the RLTO. Make sure you consult an attorney or Realtor before having a new tenant sign a lease.
Notices To Enter - You may be the property owner but that does not mean you can just pop in anytime. In the City Of Chicago you must provide no less than 48 hour notice to enter your property unless otherwise agreed upon with the tenant. Emergencies can be excluded but they must be real emergencies.
These are just 4 examples of what you need to look out for when being a Landlord in Chicago. For more information you can check out the City of Chicago’s website or send me an email at firstname.lastname@example.org to request a copy of our lease that you can utilize as a reference point.
Other questions you should have the answers to are as follows when it comes to being a Landlord in Chicago.
What bank the security deposit is located at?
How much interest do I pay my tenant for their security deposit?
Do I need to provide a receipt to the tenant for the security deposit?
Do I need to provide a Bed Bug disclosure to the tenant?
What do I need to do in order to hold back my security deposit if there is damages?
How much notice do I need to provide the tenant to gain access?
What remedies does a tenant have if there is an issue with the property repairs?
What are the tenant’s general responsibilities?
Do I need to disclose utility costs?
What information do I need to have on the front page of the lease?
Can collecting last month's rent be considered a security deposit?
What are the penalties if I break any rules as a Landlord?
Do I have to allow my tenant to sublease?
For more information you can reach out to Mark Ainley anytime and we can provide resources that can answer any questions or point you in the right direction.
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