Hi everyone, I'm looking to start off my real estate investor career. I'm putting together my gameplan and my goals, but I've hit a road block that for some reason isnt clear anywhere I do research. And that is the required licenses, documentation, and legalities of renting out a property. Do I need a broker's license, do I need a permit? I live in illinois and I realize that different states have different laws. So if anyone from Illinois here knows what I need to get started that would be awesome!
1. No broker's license is requred unless you wish to manage property for someone else.
2. Whether or not you need a license depends on which community you do business in. Alton yes. Cahokia, no. Every city is different. Check with their code enforcement or housing department.
3. Once you have a property to rent make sure you insure it as a RENTAL property and not owner occupied unless you live there also.
4. Join Illinois REIA. We meet in Cottage Hills, by Alton on the first Monday of each month and Belleville, IL on the third Tuesday.
5. You will also need an atttoney you can afford. PM me for details.
I can't emphasize @George Skidis ' recommendations enough. Especially insuring your property as a rental and knowing the rules of your insurance company about vacant property (how long can it be vacant before you need to alert them, what are the options when it's vacant, etc.)
Not all areas have landlord training, but if the municipality offers it--take it. The last thing you want to do is learn something the hard way. Also, if there is any kind of tenant organization, you'll want to hook up with them, too. They often know the rules inside and out. Although they are targeted to tenant rights, they're the people that will be on your tenant's side if/when there's an issue. Best to know what they can use against a landlord so you can avoid issues best you can.
Agreed with the others, it’s so city-dependent, it’s good to talk to others who have done it in your city. BUT don’t let that scare you off, it’s just a hurdle you can get over.
Funny(ish) story... when I started with my first rental in Philly I did all my research about licenses, tax ids etc etc. Rentals need smoke detectors, lead inspections of children, etc etc etc. All good, right?
Well a nosy neighbor stopped by to ‘helpfully’ remind me that the neighborhood doesn’t like college students, and there’s a limit of 3 un-related people in a house. What!? He’s gotta be wrong, I have a 4BR, why not rent to 4 people!?
Turns out, in some zoning laws, turns out to be true. Not mentioned ANYWHERE in the landlord tenant rules. Doh!
Anyway, I’m happy I found out about it before renting to a group of 4 students! Talk to everyone you can! :)