I know someone that have just undergone a on a 3-flat in an increasing value area in Chicago. 2 of the units are already rented out, and the 3rd is owner occupied. Their plan is to live in the garden unit, and renovate the two other units. Current rent is 850/unit and after renovation are looking to have rents at 1450/unit. There shouldn't be any legal issues as far as forcing the families out to renovate the property, right? Their leases expire in March and will be able to live there until the lease expires of course.
@Kevin K. So long has they honor the lease and follow the lease they should have no issues.
@Mark Ainley Thanks Mark
Normal rules usually don't apply when a landlord lives in a small multifamily, usually 4 units or less. In most cases the views are more like it's a guest living in your house more so than a true landlord-tenant relationship. And that's because it's the owner's primary residence. One you move out, back to normal. Always best though to consult with a local attorney who's well versed on the law and can tell you exactly the steps you should take @Kevin K. .
If you are renovating after the tenants' leases end, you'll just want to follow your lease and send them a letter with proper notice letting them know that they will need to move out on X date per the lease term. I would also try to get them to sign a notice to vacate form as well.