Chicago real estate, living and neighborhood perspective

Landlords New Rules v2

Photo by Sherwin Sucaldito, @properties Sales & Marketing

I had some questions about rentals, especially with the rental season around the corner. I have added additional information to answer some of the questions I received. You can read the original post here: http://wp.me/pJmzm-l

With the current economic situation, one thing has been very common for many of us… our credit has been destroyed. For landlords, this can be quite scary as it’s not as clear as to who are viable candidates. Some of the applicants I have reviewed have been involved in a recent distressed sale, effectively damaging their credit. Some have sold due to job changes, others due to unforeseen expenses, others deciding to get out altogether and starting fresh.  Some individuals who have been involved in a distressed sale may be just looking to start from scratch will need a place to start from.

First verify their income, and determine their debt to income ratio. Anything around 35% is usually safe; more than 50% could be risky, especially once you start accounting for transportation, food miscellaneous expenses.

Tenants can sue, and they do, and win. Have a thorough move-in package addressing punch list items and what is acceptable or not. At the end of lease term, landlords have a specific amount of time to itemize deductions from deposit and give receipt to tenant, and forward deposits.
I have seen a lot of customized leases out there. If possible, use the standard association leases from CAR (Chicago Association of REALTORS) or ABOMA (Apartment Building Owners and Managers Association). If you have to go to court, you may have an easier time if you present one of these leases versus a fifteen page lease downloaded from the internet.

Lastly, always be punctual and regular with all notices. Deliver 5-day notices for late rent each and every month the tenant is late. If rent is due on the 1st, there should be a 5-day notice on the 7th, not before. I like to keep my documents short, simple and to the point. If you have to go to court, the judge won’t look at your files for perhaps more than a few seconds. With regards to those lengthy leases sold at some stores or downloaded from the internet, I have yet to see or hear about a judge reading one through in court.

If you have questions, always defer to a specialist, either a REALTOR® or an attorney and have expertise in landlord / tenant representation and law.

Sherwin is a REALTOR® in the Chicago & Suburban area with @properties. Questions can be forwarded to Sherwin Sucaldito

Creative Commons License

”Landlords New Rules v2” by Sherwin Sucaldito is licensed under a Creative Commons Attribution-No Derivative Works 3.0 United States License.
Based on a work at Realty Evolved

Photo may not be used, transmitted or redistributed in any way.

Realty Evolved