Question on Chicago Residential Landlord and Tenant Ordinance
Hi BP!
On the city of Chicago site, it states "The ordinance covers most rental properties located in Chicago except units in owner-occupied buildings with six units or less."
It seems that the Chicago Residential Landlord and Tenant Ordinance is disregarded if I am househacking a small mult-unit.
Does anyone know why this is? For any landlords that have encountered this, how have you handled this? If I wanted to include what is covered in the ordinance, would I just need an addendum? Since it appears I would not be held to the city's ordinance, can I pick and adjust what I want to be included? Any guidance/referrals is greatly appreciated!
I use a chicago lease which covers everything in the ordinance. You can download one or buy one from a local office supply store.
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@Jessica H. do you plan to live in the building forever? I would recommend just using the CAR lease (free) and following the CRLTO. As soon as you move out, you are liable for all the free passes you would have had. Mostly, the stuff is pretty simple to follow as a housing provider. The only major change is that most Chicago operators will not handle a security deposit as the liability is too great. Instead, everyone charges a move in fee.
We always advise that you use the Chicago Realtor lease (you can download it in the files and I upload the new version every year) and follow the CRLTO so when you do move out you are compliant
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Do NOT take a security deposit. When a tenant is being evicted and seeks an attorney the attorney asks only one dispositive question: "did your landlord require a security deposit?" If the answer is yes, the attorney takes the case. If the answer is no, the tenant is told the lawyer cannot help them.
Quote from @Jessica H.:
Hi BP!
On the city of Chicago site, it states "The ordinance covers most rental properties located in Chicago except units in owner-occupied buildings with six units or less."
It seems that the Chicago Residential Landlord and Tenant Ordinance is disregarded if I am househacking a small mult-unit.
Does anyone know why this is? For any landlords that have encountered this, how have you handled this? If I wanted to include what is covered in the ordinance, would I just need an addendum? Since it appears I would not be held to the city's ordinance, can I pick and adjust what I want to be included? Any guidance/referrals is greatly appreciated!
You asked a good question- Why are owner occupants exempt from portions of the Ordinance. I have to admit that I don't know why owner occupants are exempt. Please note that your only exempt from portions of the ordinance so it's probably best to fully follow the ordinance.
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Real Estate Agent Illinois (#475. 112189)
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Hey @Jessica H. - Great questions and I think you got some solid advice above. Just follow CLTO & use CAR lease. Chicago is goofy and will probably always be tenant-friendly but if you just vet your tenants properly you shouldn't have a problem.
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Quote from @Jonathan Klemm:
Hey @Jessica H. - Great questions and I think you got some solid advice above. Just follow CLTO & use CAR lease. Chicago is goofy and will probably always be tenant-friendly but if you just vet your tenants properly you shouldn't have a problem.
What is a CAR lease?
@John Warren What you said makes sense, to follow the CRLTO since I don't plan on living in the building forever so I should get familiar with it now, thanks!