Managing tenants moving in and out

Chicago, Illinois
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Managing tenants moving in and out

Maya Jones
Member since 2025 · 126 posts · 45 votes

We have a unit with 3 tenants, 2 out of 3 seem they will be moving out in december. The remaining tenant wants to bring her girlfriend and the girlfriend cousins in. So going from 3 to 4 total. 

do I need to ask the tenants that are moving out for an official letter stating when they plan to move out? Since their original lease doesnt expire until april 2026, do I say they are still responsible for paying unless I find a replacement tenant? 

can I limit how many people reside in an apartment? I am in chicago. Can I say I want to keep the number of tenants to 3 as original lease? 

i am planning to have everyone new fill out application and background check.

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Peter MckernanBusiness Member
Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
11mo

You should get something agreed upon for the tenants living and the remaining rent/security deposit if there is something changing from the existing lease. 

For the amount of people living in the unit/house/etc. you should check with the city/state/local laws for this since that will be your backing to say yes or no. You need to be within a limit that are safe and habitable. 

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    1y

    It sounds like this is a shared apartment.  Why not just rent the unit to the one who is staying and list the occupants on the lease who are allowed to live there?  Renting rooms, it is easier with 1 person per room; but I get that doesn't happen sometimes.  Think about how you divide utilities (this is where 1 person per room is easier).

    For those who are moving out before the end of their lease, get it in writing.  As for the penalty-what does your lease say?  Often there is a penalty for breaking the lease early.  If not, yes they are responsible for rent until you get it rented (but you must do your best to get someone in quickly to minimize the vacancy period).  Having a set amount in the lease if they break it is much easier.

    1Reply
    • Maya Jones
      OP
      Member since 2025 · 126 posts · 45 votes
      1y

      @Theresa Harris they are friends renting but they are all listed. 
      i want everyone living there to be financially responsible for the rent in case one decides to leave again . 
      we dont have clause for breaking lease early 

      1Reply
  • Keith Jablonowski
    Property Manager · Lombard, IL · Member since 2013 · 100 posts · 82 votes
    1y

    Do you have one lease for all tenants, or individual leases for each tenant?   

    1Reply
  • Paul De Luca
    Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes
    1y

    @Maya Jones

    I don't think an official letter from the vacating tenants is necessary. Written confirmation alone should be enough. 

    Since their lease expires in April 2026 though, are you mutually agreeing to terminate the lease early? You could certainly try to hold the vacating tenants liable for the remaining balance of the rent due, but in practice it's going to be difficult to actually enforce.

    Double check your lease about occupancy limits but yes you can set a limit for how many people occupy an apartment you own.

    1Reply
    • Maya Jones
      OP
      Member since 2025 · 126 posts · 45 votes
      1y

      @Paul De Luca I am in Chicago so I think there is something about fair housing that tells how many renters can be in a unit .

      my question is do I have to follow thay or can make my own rule 

      1Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    11mo

    To be safe, I would have the tenants that are leaving sign a one page document stating that they'll be leaving by xx date. Ironically, I find myself in the exact same situation. 

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    • Maya Jones
      OP
      Member since 2025 · 126 posts · 45 votes
      11mo

      @Aaron Zimmerman thanks, I wonder if I should include existing remaining tenant and put a line in there that she h derstands that she is respobsible for the full rent amount regardless if new residents get approved or not. 

      i wonder if I could say no to new tenants moving in? 

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    • Maya Jones
      OP
      Member since 2025 · 126 posts · 45 votes
      11mo
      Quote from @Aaron Zimmerman:

      To be safe, I would have the tenants that are leaving sign a one page document stating that they'll be leaving by xx date. Ironically, I find myself in the exact same situation. 


       What did you end up drafting? I drafted a document saying that they understand their original lease doesn't ent until April and they are responsible until a qualified candidate has been approved by management. They also give me permission to help them with the process of getting a replacement tenant. 

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    • Aaron ZimmermanBusiness Member
      Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
      11mo

      @Maya Jones I would use the Illinois Supreme Court document. In case the link doesn't work, you can Google "illinois supreme court notice of nonrenwal of lease document"

      https://ilcourtsaudio.blob.core.windows.net/antilles-resources/resources/e885d8f9-faa4-44cc-9eb5-cb031e68ca48/EVC_NoticeNonRenewalOrTermination.pdf

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  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    11mo

    You should get something agreed upon for the tenants living and the remaining rent/security deposit if there is something changing from the existing lease. 

    For the amount of people living in the unit/house/etc. you should check with the city/state/local laws for this since that will be your backing to say yes or no. You need to be within a limit that are safe and habitable. 

    The McKernan Group4.958 Reviews
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    2Reply
  • George SkidisPro Member
    Rental Property Investor · Belleville, IL · Member since 2017 · 875 posts · 529 votes
    11mo

    I am not an attorney and don't play one on television. This is not legal advice, nor is it a professional consultation.

    Chicago has code enforcement. The original occupancy inspection tells you how many can stay in the unit. No wiggle room there.

    Chicago also has rules about punitive damages in multiple amounts of the damage deposit if the tenants prevail. Many Chicago landlords do NOT charge a damage deposit. They just raise the rent.

    A new occupancy permit will be needed to establish who the new residents are. You need to make sure they do this or Chicago may just hold you financially responsible for an occupancy violation. This may trigger a new occupancy inspection so include that cost in the move in of the new residents.

    Problem #1: Did they break anything? You need to do an inspection before they leave and after they leave to determine if you can charge them for damages.

    Problem #2: Who is responsible for rent if 2 move out.

    Problem #3: Who is responsible for damages if 2 move out?

    Problem #4: If these are college students, did you have a parent or guardian co-sign for rent and damages?

    A lease which includes all tenants is interesting. Did all of the current tenants sign the lease? If not, only those who signed can be held responsible, even if you named them in the lease.

    You will need a new lease or a lease addendum to cover the new residents. Each one needs to sign that they are responsible for the entire rent if the other residents move out.

    In Chicago you should join Jane Garvey's REIA, The Chicago Creative Investment Advisor (CCIA). They have Cash Flow nights and other meetings.

    If you don't know an attorney that does leases and real estate, you need one. Need a referral, PM me.

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    • Maya Jones
      OP
      Member since 2025 · 126 posts · 45 votes
      11mo

      @George Skidis thanks George. I inherited these tenants and their existing lease agreement is a document from domu. I am making everyone responsible for lease until a new candidate is approved theough approval process.

      i did not inspect premises before they moved in so wouldnt know damages. There is no security deposit

      What is occupancy certification that you are talking about? 

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    • George SkidisPro Member
      Rental Property Investor · Belleville, IL · Member since 2017 · 875 posts · 529 votes
      11mo
      Quote from @Maya Jones:

      @George Skidis thanks George. I inherited these tenants and their existing lease agreement is a document from domu. I am making everyone responsible for lease until a new candidate is approved theough approval process.

      i did not inspect premises before they moved in so wouldnt know damages. There is no security deposit

      What is occupancy certification that you are talking about? 

      Most larger cities and those with "Home Rule" have a version of Code Enforcement. They may call it something different but that is what it is. If in the city limits it is the city. Outside of the city check with the County. 

      Code Enforcement checks units for habitability. The measure the size of each bedroom and determine the maximum number of warm bodies that can sleep in them. A three bedroom might have two large bedrooms for 2 occupants and a small bedroom which can only have 1 occupant making the house total 5 maximum residents. This process is called an "Occupancy Inspection" which the landlord normally pays for.

      The next step is an occupancy permit. This is obtained by the tenant. They take a copy of the lease to code enforcement, prove their identity (Hopefully), list the residents and pay the second fee.


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  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    11mo

    Whoa, whoa, whoa! Are they at the end of their lease or are they just deciding to move out? It sounds like the 2 tenants are breaking the lease and therefore should be held accountable to the lease. You and the tenants can agree mutually to end or change the lease, but they do not get to tell you that they are moving out mid lease.

    When a tenant wants to move other tenants in, we do allow it, but they have to go through the application process. The federal guidelines, and they are only guidelines, not rules or laws, are 2 heartbeats per bedroom.

    But, you are in a BLUE state and tenants can walk all over landlords there so who knows what laws really apply and how much it will cost you to have those laws enforced.

    [email protected]239-339-3969
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    • Maya Jones
      OP
      Member since 2025 · 126 posts · 45 votes
      11mo

      @Adam Bartomeo haha your message made me lol. I think these are poorly trained tenants ... I think the gf already lives there but am I not acknowledging it. 
      i would like everyone to apply and get approved. 
      Remaining tenant said that they are willing to pay more so I am thinking I write a lease termination and rewrite a new lease with new terms and higher rent.

      1Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    11mo

    Appreciate you sharing that document @Aaron Zimmerman!  I saved it in my templates.

    What part of Chicago is your property in @Maya Jones?

    Have you had any issues with the tenants paying on time?

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  • Maya Jones
    OP
    Member since 2025 · 126 posts · 45 votes
    11mo

    I am in Avondale, just took over existing tenants. So far no issues but lots of scenarios coming up. Newest, is tenants don't have social security. How does everyone manuever this? In Brandon Turner's book I read, qualification criteria include having a social security. 

    I am looking for ideas again:)

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    • George SkidisPro Member
      Rental Property Investor · Belleville, IL · Member since 2017 · 875 posts · 529 votes
      11mo
      Quote from @Maya Jones:

      I am in Avondale, just took over existing tenants. So far no issues but lots of scenarios coming up. Newest, is tenants don't have social security. How does everyone maneuver this? In Brandon Turner's book I read, qualification criteria include having a social security. 

      I am looking for ideas again:)

      For clarity you are not referring to receiving a Social Security payment but rather the current residents have no Social Security Number.

      Many non-citizens have an "Individual Taxpayer Identification Number or (ITIN). This allows them to work in the United States until their Work Visa expires. They then return to their country and wait for a new seasonal work visa.

      Other use stolen identities to get employment. Several years ago, my wife's ID was stolen and while we lived in Illinois her name and SSN were gainfully employed in Arizona for almost 2 years. They even got a tax refund. They might still be working under her info, but we have blocked them from the IRS.

      If they lack either a social security number or an ITIN they might be here in a less than legal capacity.  Someone else rented the unit to them and as long as they pay the rent. No problem. Eviction is no problem, just threaten to call ICE. Or you could actually call them. 

      Most undocumented workers keep a low profile and pay their rent. They know the risks and act accordingly. The Criminals on the other hand are a bigger issue. That is where tenant screening comes in for your future residents.

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  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    11mo

    I always did an amendment to the lease that the tenants sign new and old agreeing joe, jim and sally will be replaced by joe, jack and sue. all other terms the same.  It also addressed the security deposit which normally carried forward. If they don't sign they aren't relieved of the lease.

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