Chicago First Time Landlord - Lease

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Chicago First Time Landlord - Lease

Marvin Anaya
Investor · Chicago, IL · Member since 2015 · 47 posts · 5 votes

Hello!

I just closed on a 2 flat in Chicago (super excited!). Does anyone have a sample Lease that I can use or can anyone point me in the right direction please?

I live in unincorporated cook county - not sure if that makes a difference. It is a Chicago address still.

THANK YOU!

Marvin

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Eric S.
Glen Ellyn, IL · Member since 2012 · 95 posts · 59 votes
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I buy my leases from American Legal 312-332-1922.  I use form 104, but there are several depending on which one you and your attorney prefer.  They are updated every year with the required info.  I also add supplemetal forms in addition to the Chicago Apartment Lease.   

Be very careful renting in Chicago.  Read the RLTO very carefully and MEMORIZE it, or you will get sued.  Also be very careful with security deposits, and consider a move-in fee in lieu of a security deposit.  

Be sure to review all pertinent laws.  There are tons, and it pays to do your homework before you start looking for tenants.  

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  • Howard Abell
    Commercial Real Estate Broker · Chicago, IL · Member since 2015 · 123 posts · 59 votes
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    You might check out office supplies stores for a pre-written lease and us that as a template. Also try the internet for Illinois specific forms.

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  • Marvin Anaya
    OP
    Investor · Chicago, IL · Member since 2015 · 47 posts · 5 votes
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    Originally posted by @Howard Abell:

    You might check out office supplies stores for a pre-written lease and us that as a template. Also try the internet for Illinois specific forms.

     Thank you Howard, I will stop in an office supply store and see what they offer. I'll have to see if there are Illinois specific forms since my property is not actually incorporated into Chicago, even though it has a Chicago mailing address.

    0Reply
  • Eric S.
    Glen Ellyn, IL · Member since 2012 · 95 posts · 59 votes
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    I buy my leases from American Legal 312-332-1922.  I use form 104, but there are several depending on which one you and your attorney prefer.  They are updated every year with the required info.  I also add supplemetal forms in addition to the Chicago Apartment Lease.   

    Be very careful renting in Chicago.  Read the RLTO very carefully and MEMORIZE it, or you will get sued.  Also be very careful with security deposits, and consider a move-in fee in lieu of a security deposit.  

    Be sure to review all pertinent laws.  There are tons, and it pays to do your homework before you start looking for tenants.  

    5Reply
  • Marcin Talaga
    Real Estate Broker · Chicago, IL · Member since 2015 · 102 posts · 53 votes
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    You can find a few sample leases by just googling "Chicago Apartment Lease."  Print out the one you like best and use it.  Also, check out Domu.com.  They have a section that has a Chicago lease you can use, and I also recommend them for finding tenants.  For a few bucks you can post your apartments for rent on there.  Congrats and enjoy being a landlord!

    2Reply
  • Marvin Anaya
    OP
    Investor · Chicago, IL · Member since 2015 · 47 posts · 5 votes
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    Originally posted by @Marcin Talaga:

    You can find a few sample leases by just googling "Chicago Apartment Lease."  Print out the one you like best and use it.  Also, check out Domu.com.  They have a section that has a Chicago lease you can use, and I also recommend them for finding tenants.  For a few bucks you can post your apartments for rent on there.  Congrats and enjoy being a landlord!

     Thank you Marcin!! I'm printing out a few domu forms right now, including the Chicago Apartment Lease. I appreciate the input :)

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  • Marvin Anaya
    OP
    Investor · Chicago, IL · Member since 2015 · 47 posts · 5 votes
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    Originally posted by @Eric S.:

    I buy my leases from American Legal 312-332-1922.  I use form 104, but there are several depending on which one you and your attorney prefer.  They are updated every year with the required info.  I also add supplemetal forms in addition to the Chicago Apartment Lease.   

    Be very careful renting in Chicago.  Read the RLTO very carefully and MEMORIZE it, or you will get sued.  Also be very careful with security deposits, and consider a move-in fee in lieu of a security deposit.  

    Be sure to review all pertinent laws.  There are tons, and it pays to do your homework before you start looking for tenants.  

     Thank you for the help Eric, I will be sure to read the RLTO until I memorize it. The more I know, the more I can protect myself from being sued. I'll have to call American Legal and see if they have something for unincorporated Chicago. I think I will take your advice and charge a one-time move-in fee. Are there any regulations or rules as to how to calculate the move in fee?

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  • Eric S.
    Glen Ellyn, IL · Member since 2012 · 95 posts · 59 votes
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    you may charge up to 50% of the rent amount-no more.  if you do, it will likely be considered  a security deposit by a judge and subject to security deposit laws.  

    1Reply
  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
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    Originally posted by @Marvin Anaya:

    Hello!

    I just closed on a 2 flat in Chicago (super excited!). Does anyone have a sample Lease that I can use or can anyone point me in the right direction please?

    I live in unincorporated cook county - not sure if that makes a difference. It is a Chicago address still.

    THANK YOU!

    Marvin

     Congrats on the 2 flat:  Try Doc Stoc.  You can search for Illinois leasing forms.  Good luck

    312-681-7487
    1Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
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    @Marvin Anaya

     - If it is in the city limits, I HIGHLY suggest using the Chicago Association of Realtor lease, which has all the required disclosures

    http://chicagorealtor.com/wp-content/uploads/2014/...

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  • Marvin Anaya
    OP
    Investor · Chicago, IL · Member since 2015 · 47 posts · 5 votes
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    Originally posted by @Brie Schmidt:

    @Marvin Anaya

     - If it is in the city limits, I HIGHLY suggest using the Chicago Association of Realtor lease, which has all the required disclosures

    http://chicagorealtor.com/wp-content/uploads/2014/...

     Thank you so much Brie! I will use this one. Greatly appreciated!

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  • Account Closed
    Investor · Chicago, IL · Member since 2014 · 169 posts · 29 votes
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    I am in the process of renting out my first apartment and was going to use the Chicago Association of Realtors lease that @Brie Schmidt posted but it seems as if you need to be a member now. I remember looking at it when this thread was originally posted and liking it because it included everything. Does anyone know of another website that offers the same thing?

    Thanks in advance for your responses.

    0Reply
  • Ronan M.Pro Member
    Rental Property Investor · Chicago, IL · Member since 2015 · 352 posts · 281 votes
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    I agree with Brie.

    When I started out being a Landlord (5yrs ago) I used a generic or Domu lease. I had an eviction and the judge laughed at me and my lease and basically threw me out of court.

    Do not google or go to Office Max

    Use a Chicago Assoc of Realtors lease and with tenant turnover keep using the most up to date version they publish.

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  • Frank Woodin
    Investor · Crystal Lake, IL · Member since 2014 · 64 posts · 17 votes
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     Not to beat a dead horse but I took a seminar on City of Chicago LTO and they had a lawyer who was teaching part of the seminar and he told us his whole practice is based on suing landlords.  The main point he sues on the fact that most landlords don't pay interest on the security deposits they take in from tenants, and they win all the time.  I agree with the move in fee and not handling security deposits.

    The following article illustrates the point as well as the point to treat your tenants well, especially in Chicago!

    http://www.chicagobusiness.com/article/20141206/ISSUE01/312069986/a-landlord-tenant-dispute-that-brought-down-the-roof

    1Reply
  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
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    @Account Closed I can send you the Realtor Board Lease we use.  Just send me your email or email me.  The Chicago board encourages avoiding security deposits as well. 

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  • Account Closed
    Investor · Chicago, IL · Member since 2014 · 169 posts · 29 votes
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    @Mark Ainley

    Thank you for the offer but @Marvin Anaya was kind enough to send me a copy of CRB lease for 2015. And I'm definitely going the route of the move-in fee.

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  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
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    @Account Closed

    here is the link for the lease

    http://chicagorealtor.com/wp-content/uploads/2015/01/2015-Unfurnished-Apartment-Lease.pdf

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  • Patrick Howe
    Investor · Chicago, IL · Member since 2014 · 22 posts · 6 votes
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    @Brie Schmidt

    Any advice for taking a security deposit in Chicago? What forms or receipts need to be given to the tenant?

    Thanks

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  • Patrick Howe
    Investor · Chicago, IL · Member since 2014 · 22 posts · 6 votes
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    Originally posted by @Brie Schmidt:

    @Account Closed

    here is the link for the lease

    http://chicagorealtor.com/wp-content/uploads/2015/01/2015-Unfurnished-Apartment-Lease.pdf

    Thanks for the link, it will help a lot.

    Any advice for taking a security deposit in Chicago? What forms or receipts do I need to give the tenant?

    Thanks

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  • Brie SchmidtBusiness Member
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    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
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    @Patrick Howe here is what I use.  I sign it and include a copy of the deposited check at the bottom

    Receipt for security deposit

    Company name

    our phone number

    our email

    Date: 

    Received from: 

    Amount: 

    Received By: 

    As security deposit for *address* Located in *city/state/zip*

    The security deposit will be deposited at * Bank * located at *bank address* 

    * Bank* is FDIC Insured

    Owner Signature __________________________________

    Date _________________

    Tenant Signature __________________________________

    Date _________________

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  • Marci Zhang
    Real Estate Agent · Schaumburg, IL · Member since 2015 · 22 posts · 4 votes
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    Thanks to all who posted in this thread. I learned new information!! What especially startled me was the comment by Ronin M about getting laughed out of court using generic leases. Very grateful to Brie for providing the link for the Chicago lease. I don't have any rental properties in Chicago, but I do in Schaumburg and Villa Park. Would the Chicago lease still be a good one to use?

    0Reply
  • Ronan M.Pro Member
    Rental Property Investor · Chicago, IL · Member since 2015 · 352 posts · 281 votes
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    Hi Marci

    In my situation it is possible the Judge may have let it slide as technically the generic is still a lease and signed by both parties. It was the opposing attorney who picked up on it and brought it to the attention of the judge with the argument that it was "half baked" "do it yourself" lease and it was clear I was a"seat of the pants' non conforming landlord etc etc etc...... 

    Bottom line my lesson learnt was to do things properly, by the book and with proper paperwork so as to avoid getting picked apart by anybody if court action is required.

    I had no assistance when I started being a landlord. I did it the best I could and learnt some hard lessons. I only post here my experiences so others can learn and not make the same mistakes.

    2Reply
  • John CasmonPro Member
    Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
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    Congrats @Marvin Anaya

    Are you inheriting tenants or placing new ones? 

    One additional tip is that you're supposed to pay interest on security deposits annually. I thought you just included the interest when the tenant moved out and you returned the deposit. Going forward I'm going to have each tenant confirm in writing that they want it to rollover until they move out or cut the check for the interest (which will probably cost more money to send than to pay).  

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  • Frank Woodin
    Investor · Crystal Lake, IL · Member since 2014 · 64 posts · 17 votes
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    Originally posted by @Marci Zhang:

    Thanks to all who posted in this thread. I learned new information!! What especially startled me was the comment by Ronin M about getting laughed out of court using generic leases. Very grateful to Brie for providing the link for the Chicago lease. I don't have any rental properties in Chicago, but I do in Schaumburg and Villa Park. Would the Chicago lease still be a good one to use?

     Marci,

    I use a lease I got from my attorney, since I figure they are going to have to defend it in court it would be best to use theirs.   I would not use the Chicago Lease since Chicago can be a big pain in the rear on the minute details.  You can see my comments on this in a previous post from a month ago on this thread.  The City of Chicago is an animal onto itself and I would only use that lease if I were in the city.  One of the biggest caveats is that you have to pay interest on any security deposit in the City of Chicago, it could as small as a dollar and if you don't send it out on time every time as stipulated in the Chicago Residential Landlord Tenant Ordinance you could be sued for double the security deposit, and this happens all the time in the city.

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  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
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    @Marci Zhang  We manage many properties in Schaumburg, Villa Park, etc and we use the suburb equivalent to what Brie sent the link on.  Then sometimes we add a rider or addendum.    Your need to be so specific in the burbs compared to Chicago is night and day.

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  • Fadel A.
    Investor · Darien, IL · Member since 2015 · 10 posts · 0 votes
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    Any advice about Oak Lawn? What version should we use? Do we have to pay interest? What if the lease signed by the tenant states that the SD does not accrue interest?
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