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Author: Mark Ainely | Partner GC Realty & Development & Co-Host Straight Up Chicago Investor Podcast
In this special Straight Up Tuesday Tip, Tom Shallcross and Mark Ainley bring back Mike Glasser to break down a proposed ordinance coming from Mayor Brandon Johnson's administration and the Chicago Department of Housing.
Mike joined the episode one day after attending a Chicago City Council Housing Committee hearing, giving landlords a direct look at what is being proposed, what happened inside the meeting, and why Chicago housing providers need to pay attention.
The proposal includes just cause eviction rules, a landlord registry, new annual fees, expanded enforcement by the Department of Housing, and permanent legal assistance for tenants. According to Mike, the full proposal could add roughly 100 new regulations affecting Chicago rental housing providers.
If you own or manage rental property in Chicago, this is an episode you need to understand.
Questions We Answer in This Episode
Q: What is Chicago proposing to change in the RLTO?
A: Mayor Brandon Johnson's administration and the Department of Housing have introduced a proposed ordinance that would significantly expand Chicago rental regulations. Mike says the proposal contains roughly 100 new regulations affecting housing providers.
Q: Why is Mike Glasser concerned about how the proposal was created?
A: Mike says housing providers were severely underrepresented on the 20-member housing task force. While a few industry representatives participated, the majority came from a tenant rights perspective.
Q: What is the proposed just cause eviction rule?
A: Mike describes it as an "endless lease." Under the proposal, landlords would have limited reasons to non-renew a resident outside of issues like nonpayment or a material lease violation.
Q: Why could just cause rules make landlords more selective?
A: Tom argues that if landlords believe a resident could remain indefinitely, they may become much more conservative during tenant screening. Instead of taking a chance on an applicant with a less-than-perfect background, owners may decide the risk is too high.
Q: What is the proposed Chicago landlord registry?
A: The proposal would create a registry requiring landlords or significant building owners to register with the city. Mike says the proposed fee could reach $60 per apartment each year.
Q: What would the landlord registry fees fund?
A: According to Mike, the money would help fund Department of Housing enforcement and legal assistance for tenants.
Q: Would the Department of Housing receive more enforcement power?
A: Yes. Mike explains that the department currently lacks certain tools to directly enforce the RLTO. The proposal would expand its ability to investigate and take action against housing providers.
Q: What happened at the City Council Housing Committee hearing?
A: The June 29 meeting was a subject matter hearing, so no vote was taken. Mike says several aldermen raised serious questions about the ordinance and the process used to introduce it.
Q: When could the proposed Chicago rental ordinance move forward?
A: Mike explains that the next Housing Committee meeting could potentially move the proposal to the full City Council. The mayor's office appeared motivated to advance the ordinance before fall budget season.
Q: What can Chicago landlords do right now?
A: Mike asks housing providers to stay educated, communicate with aldermen when they have existing relationships, watch for industry calls to action, and sign the petition available through NBOA Chicago.
Show Notes
00:15 Chicago's proposed RLTO overhaul and why landlords need to pay attention
00:52 How the Department of Housing task force developed the rental proposal
02:49 Just cause eviction and the concern over an "endless lease"
05:40 Why stricter rental rules could make tenant screening more conservative
07:17 Nearly 100 proposed regulations affecting Chicago housing providers
07:31 Chicago landlord registry and proposed annual per-unit fees
09:17 Expanded legal assistance for Chicago tenants
10:16 What happened at the June 29 City Council Housing Committee hearing
11:36 Why relationships with Chicago aldermen matter right now
14:14 How Chicago landlords can take action through NBOA
Takeaways for Chicago Property Managers and Landlords
Chicago is considering major changes to the RLTO that could significantly affect how rental properties are operated.
Just cause rules could limit a landlord's ability to non-renew a resident.
Removing flexibility at renewal could make housing providers much more conservative during tenant screening.
The proposed landlord registry could add annual per-unit costs for Chicago rental owners.
The Department of Housing could receive additional authority to enforce rental regulations.
New operating costs do not disappear. Housing providers ultimately have to account for them when running rental properties.
Chicago landlords should understand the proposal before it reaches a final City Council vote.
Existing relationships with aldermen may be especially important as the ordinance moves through committee.
Housing providers can follow NBOA for updates and future calls to action.
Even suburban investors should pay attention to major Chicago housing policies and the direction of rental regulation.
Guest info
Guest Name: Mike Glasser
Guest Organization: Neighborhood Building Owners Alliance, NBOA
Website: www.nboachicago.com
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
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