All Forum Posts by: Eric Farnan

Is the 1/2” gap located in an entryway between the tile & vinyl plank?  

I recently rented a 3br/2ba on a 3unit on the southwest side for $1100/month + charged an $825 move in fee (75%) which is more than twice  what I was charging and the benefits have paid dividends 3 months in. First off, the high fee has surprisingly weeded out a lot of traditionally A+ applicants on paper who have great credit & references, but, like so many others, are currently out of work  or will be underemployed for the foreseeable future. It assures me that they aren’t over-extending themselves into a living situation they can’t afford and it’s brought me even more peace of mind than the 1st&last’s security deposit ever had while making me happy to invest my time & money assisting the family w/ tailoring the unit to their needs (mounting tv’s, making minor repairs to squeaky floors, sticky cabinets, childproofing, etc) so they don’t attempt to try their hand at amateurly repairing things themselves which always makes things worse

The increased fee has made me rationalize the time/cost investment of time while also strengthening the  relationship & respect (both ways) than I’ve had with the average tenant. It’s also reassured me in the choice of the tenants giving my mind “security”’ while also helping them “move-in” like the name of the fee is titled instead of just being an empty name thats just 75% worse than the old way of doing things; which has oddly brought me more personal ‘security’ than the old way ever did (I should note that I’m only 3 months into this trial approach)

Even tho it’s twice as much as I have usually charged, the increased time & expense ends up balancing out in the end on the balance sheet but it’s made both myself and the tenants more comfortable during very uneasy times. It’s gonna be a long bleak & lonely winter here in Chicago and your rental is where they’re going to be spending most of their time. So, far I recommend the higher fee. We’ll see 

There’s good news regarding your dream to open a Chicago area sober living home is that you would not be the first to do so, & there are literally hundreds of smaller mom & pop style SLH’s in the area that are currently operating & would be more than willing to help guide you through the process so you don’t have to go at it alone (now I sound like a sponsor), also there are numerous Federal, State, City, County, & private grants, benefits, & tax deductions you can receive to help you get started & operating. 

The bad news is that your idea has a few major flaws besides the fact that you absolutely must disclosure your intent to any landlord according to the 2020 IL TLRO Tenant Landlord Residential Lease Ordinance - the most obvious of which is that you are leaving yourself as an individual open to enormous personal liability. You are going to want to consult a legal expert & if you know what general neighborhood or suburb you’re looking to start this in, consult the local alderman’s office or city hall who can help save you weeks/months/years of time in person vs. just clicking around the internet. You might want to try calling these local municipal offices beforehand And talk to a helpful civil servant by phone in advance to make the most of your visit and minimize the amount of time you spend in person during this pandemic bc govt offices are incredibly backed up and stretched super thin right now. 

Lastly, after you receive advice from other Chicago area SLH operators & the local municipal agencies that will not only save you time but direct you towards ways to save you money, you are going to likely want to register your business as an LLC with the state and obtain the proper small business renters Insurance policy under your LLC's name (if its just a 2-3br operation the policy monthly premium cost will be very low and will shield you as an individual from the very probable situation of being personally liable for the behaviors, damages, & actions of a traditionally high-risk short-term tenant group bc no landlord's homeowners insurance policy will cover any damages or personal liabilities that will occur when they discover the nature of the operation. There are zoning compliance rules & chances are you will not be able to operate w/in 1,500ft of any school or park but overall i think your dream is very noble and with the right help, very obtainable. Good luck!