All Forum Posts by: Derek Venhuizen

First of all, thank you for your responses.

In summary, based on responses above it appears legally a Chicago landlord is unable to terminate a lease with tenants without cause prior to the end of term unless there is a buyout clause that is equal and equitable to both parties. 

My chosen course of action: I will let the lease automatically convert to month to month with a required 30 days written notice required from either the landlord or tenants if either wishes to not renew. Giving flexibility to both parties which is equitable and fair.  

Additional responses to below:

@Elizabeth Colegrove - Thank you for highlighting the buy out clause - this is common in Sydney, Australia but was not aware of its use in the states.  Although, due to strictness of the Chicago leases (essentially your not able to make changes to the standard lease) - I am not confident this would hold up in Chicago.  Also, in my situation it would most likely work against me - but understand how this could be very beneficial for a landlord in keeping tenants from breaking leases if made clear on execution.

@ Nancy Neville - Thank you for your response and I am definitely not the Mayor!!!  Just interested in that individual situation and any legal precedence. And yes I will be sure I provide 30 days written notice that I wish to not renew (or to speak individually with them and give them the flexibility to move out earlier or align our dates based both their ability to find a place and my ability to move back in)

@Dominic Jones - hopefully these responses were as helpful to you as me. 

@Andreas Mirza - Thank you. Also, I have chosen your course of action i.e. automatic extension / month to month. 

@Mark Ainley - Thank you for the background on Rahm's public offer and highlighting the security deposit interest issue - I will be sure to pay the interest to them - although with today's interest rates it will not be significant.  These 'kick out clauses' are a bit new to me - not sure if these our actually legal in Chicago.

@Brie Schmidt - Thank you for highlighting the Chicago RLTO website! Those terms our included in my Chicago lease.  

@Jim Gramata - Thank you. Yes, the lease does have the Chicago rental criteria. Although, I have added a couple riders (e.g. not responsible for repairs under $100 - as I do not want to be changing lightbulbs, etc) which my understanding is they may not hold up in the off chance that there was a legal action - but like you said the key is to be civil and to develop a mutual understanding - outside of T&C's. Lastly, while I wish to be fully informed by the law - I never refer to the lease in conversation with tenants and prefer to deal with tenants fairly and equitable "old school" approach while fully understanding any legal implications. 

THANK YOU ALL!

Thanks Elizabeth.  I actually haven't had the tenants execute the lease - its their 3rd year so am comfortable with them  - the annual lease ended on 1/31/15 and I agreed the rental rate (same as prior year) and confirmed they had no plans to leave - my lease requires 60 days written notice from the tenants.   I am about to send over the lease for them to sign (1/31/15 to 1/31/16) and I have included an additional rider to the lease that says I can cancel the lease at any time without cause with 60 days written notice.  I am just interested in knowing if I am legally allowed to cancel a lease with 60 days written notice without cause (other than relocation / wanting to move into my old place). 

As additional background, I plan on relocating from Sydney, Australia in July of 2015.....but am considering buying another place and continuing to rent the townhouse....yet would like to have the flexibility to decide in May15 while still having a more formal commitment from the tenants.  

Can a Chicago landlord terminate a lease at any time (i.e. no issues / paying on time etc) with written notice prior to the end of the term?  How many days written notice to tenants is required?

Background:  I have a 1 year term rental agreement in place. I am currently living overseas but plan to relocate back to my house in 6 months and may like to move back in.  Legally, (excluding any oral discussions with tenant) do I have the right to cancel the lease? I know Rahm Emmanuel (current mayor of chicago) ran into this issue where he had to cancel his property which was leased and was successfully able to do so but not without a bit of backlash. 

Thanks in advance for any thoughts / advice. 

Wow - thank you all for the very helpful advise and perspective. In regards to adding the father as a 1) guarantor and 2) filing a pay rent or quit notice can anyone provide a link to this paperwork / process for each of these so I can review? In terms of adding the father as a guarantor, should this be added to the original executed lease with all parties names? Or would it be a separate document? Also, I plan to discuss with the remaining tenants and require one payment going forward. As each one of the other two tenants security deposit is now $300 in the hole - I plan to waive that amount if they are able to find a replacement tenant by the end of the month in the event 1) the tenants are not willing provide his share, 2) the non paying tenant does not make payment and provide sufficient documentation requested, or 3) the dad is not willing to make payment and sign on as a an guarantor. Let me know any additional thoughts. I will admit I am worried that 1 non-paying tenant will turn into 3 depending on the 2 other tenants reaction and would appreciate any advise on how best to navigate that.

Thanks for the reply. Below is my reasoning and actual response.  Let me know thoughts or if I am too easy!?

After a bit of thought - I have weighed the cost of 1) an eviction 2) early termination negotiation and 3) evaluating whether I am turning away a tenant who has the resources to continue on, or who may find another job any day.  I have chosen to initially pursue option 3 in the short term. 

Although not indicated in the original question the tenant informated me that he would 1) be able to bring the rent up to date (2 months) owed with an expected unemployment check in the near term, 2) that his benefits would be sufficient to make future rent payments and 3) that his dad would support him if needed and he offered to provide documentation for both 1 & 2.  Ultimately, I have given him 2 days to provide documentation before reaching out to the room mates in order discuss them paying his portion (as they jointly and severably liable and the security deposit included 2 months rent $6k which is divided equally amoung each tenant).  See exact communication below:

Tenant-

Thank you for the note. I appreciate the upfront communication and the offer to provide documentation. In order to help me understand the current situation, please provide the following:

1) Documentation from the office (Illinois unemployment department?) including the amount of payment ($1,570 +$660) and expected timing.

2) You noted in your e-mail that the benefits will be sufficient to make the future rent payments, please provide documentation.

3) When you started the lease you had $19k in the bank ($15k savings, $4k checking) per your application. Are you able to make a payment via your savings? Please provide your bank statements.

Thanks in advance. Please provide by COB Tuesday 5 of August or inform me of any delays. In the result of a delay, it will make sense to involve the room mates in order to bring the rent up to date.   

Kind regards,

I have a 3 bed / 3 bath townhouse that is rented to 3 tenants.  Two of the three tenants have never been late. The third tenant has historically been consistently late yet always has paid in full until recently.  After 15 months of renting the tenant has now informed me that he is unemployed.  He is currently 1 month late and as rent is due on the 1st of August he now owes 2 months rent $2k. I have a 1.5month security deposit from all tenants - what is the best way to handle going forward?