Renting out units with unpermitted work?
I bought a major fixer-upper in Chicago a few years back. I completed the rehab in 2021. I got it all done without a permit including electrical, plumbing, HVAC.
Okay. I know. I know. What I did was not exactly best practice but at the time I just couldn't tolerate the city getting involved, slowing everything down while getting rich off my investments. It's like every year there's new regulations and codes especially here in this corrupted city. Like if the tax hike wasn't enough, they use the codes violations to fatten up their pockets.
During my entire renovation I avoided by all means the city's attention. They would've made me hire an architect, a structural engineer and everyone up and down the ladder with certifications hanging from their office walls, and obviously, I would have never been able to complete my rehab.
So I get that that wasn't exactly legal but I'm confident that everything is up to code. I hired some knowledgeable guys to do the heavy intervention stuff (electric, putting in windows, etc.).
I've been renting out 2 of the units now 3. None of them have asked me about permits so I have a don't ask, don't tell personal policy. No issues so far but I was wondering what kinds of issues could come up in the future. One of my buddies had a similar set up but he got into a dispute with the tenant about a code violation, the tenant discovered the lack of permits and is threatening to go to the city. If that happens to me, what are the consequences? I think my case might be different because, like I said, I'm sure that I did everything up to code. Also, am I legally obligated to disclose to tenants the permit status of the building? They could look it up but I'd rather not steer them that way if I don't have to. Like I said, all the work is safe and up to standard anyway.