Landlord Tips: Know Your Tenants Rights or it May Cost You

If you’ve not listed your apartment, condo or house for rent yet, you might want to read our post about the best way to get new tenants

If you already have a tenant, being a good landlord is not just being polite and attentive to your tenants, it also has to do with following the rules of the Chicago Residential Landlord and Tenant Ordinance , or the RLTO.

Understand Your Tenants’ Rights

Here are some misnomers about renting:

• Paint: You/Landlord do not have to paint the walls unless there are cracks (but it is a good idea to have the walls white to be more appealing)

• Repairs: If you/Landlord fail to fix a fundamental part of your unit within 14 days after they brought it to your attention, your tenant can fix it themselves and take it out of their rent (see here for details)

• If They Want to Move Out Early: You/Landlord have to accept a sublease where they are ultimately responsible for rent $ if the tenant requests this for any reason (lost job, moving, etc). You can also have a new tenant sign a new lease, negating the previous renter’s lease.

• Cleanup/Moveout: Your tenant does not have to leave the unit in “move in” condition for the next renter

• Damage: You cannot charge a tenant for putting small nail-sized holes in the walls when they move out

• Receiving a Security Deposit:

  • Separate checks from first months rent are recommended

  • Security deposit receipt must be given to a tenant immediately after signing the lease, including the bank information where it’s being held

  • Must be in a separate bank account from personal finances (not co-mingled)

  • Breaking these rules could cost you thousands of dollars if sued

  • Find out more information here

• Returning Security Deposit: Unless you had your tentants’ give you fees instead, you/Landlord are required to provide an itemized list of damages that will be deducted from their deposit within 30 days, any remaining deposit must be returned before 45 days.

Ready to Rent out Your Unit?

Here’s a Checklist for Reviewing Possible Tenants

• Are you going to ask for a security deposit (follow the rules) or a non-refundable deposit?

• Do you have your blank lease ready? Here’s a sample

• Is their criminal history clear or minimal? Here’s a service

• Is their credit at least average 500+? Here’s a service

• Did you call to check their last landlord’s reference?

• Did you call to check their employment reference + salary amount?

• Is their salary at least 3 times their share of the rent?

Requirements for Landlords at Lease Signing

• Chicago rental requirements:

  • Receipt of Heating Cost Disclosure (Here are the rules)

  • City of Chicago Building Code Violations Disclosure (if any)

  • Provide Preventing Bedbug Infestations in Apartments Pamphlet

  • Provide Protect Your Family From Lead in Your Home Pamphlet

  • Provide Radon Testing Guidelines Pamphlet

  • City of Chicago Residential Landlord and Tenant Ordinance Summary

  • Review the Residential Landlord and Tenant Ordinance

  • Provide Security Deposit Receipt, if applicable (follow the rules)

  • Recycling Disclosure (Required for buildings with 5 or more units)

  • Provide carbon monoxide information

  • Condominium Association Rules & Regulations (if applicable)