I have always personally viewed Rent Control as being something that is a major issue for both Realtors and investors. I was proven wrong in the Spring of 2019 when I met with Gideon Blustein, Director of Member Outreach for IAR (Illinois Association of Realtors). Gideon and I spent an ample amount of time discussing the Rent Control bill that was on the table down in Springfield.
What does this mean for investors/landlords?
This bill, if approved, would have lifted the ban on rent control that has been put in place since 1997. The lifting of this ban would mean for the entire state of Illinois, Chicago, and all local municipalities would now have the right to vote amongst themselves to utilize rent control locally or not.
What is rent control?
I was unaware of what it truly meant until just last year. I based my theory on rent control off a movie I had watched in which tenants never relocated due to their building having had rent control in place.
- The details that can be written into the local laws allowing rent control can be extremely detailed, however, rent control is basically rent stabilization.
- Rent stabilization occurs when the government establishes a ceiling the rent can be set at, and then they also have the ability to set a percentage by which landlords can increase the rent each year.
- In 2019, the proposed ban to lift rent control statewide never passed. Personally, I think we dodged a bullet there.
- There is a good chance that with the tenant friendly climate that has been created around COVID in 2020, that this proposal can come up in Springfield again in 2021.
I wanted to know more from the experts so I sat down with Gideon from IAR (Illinois Association of Realtors) and went over some important Q&As on the subject. We even discussed what the future projections look like for when the bill does come back up for a vote again.
Stay tuned for more information or feel free to reach out anytime with any questions you may have on behalf of a client you might be working with. I am always happy to share our experience and resources to help out other Realtors.
Realtors, if you want to be updated on current events like rent control Text “30644” to "REALTORS"
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