Laws and procedures to rent out your condo in Chicago (subletting, apartment)

[orange3324]

I am thinking about renting out my condo, however I am not 100% sure what the laws are in Chicago. Can someone point me in the right direction or give me a run down?

I have looked over my HOA and there is nothing preventing me. The building is currently 100% owner occupied.

[chet everett]

Good starting point:

City of Chicago :: Rents Right

[ToriaT]

make sure your HOA allows it. Read the fine print.

[orange3324]

They do. Only real requirement is that the lease needs to be 1 year minimum.

Does Chicago require you to receive a landlord 'license' of any kind?

[koctail]

If the building is 100% owner occupied, then good chance they do not allow renting. Check with your board or be prepared for heavy fines when they find out.

[pidgeon92]

I would agree that you need to talk to the board before you do anything else.

No, no kind of city licensing is required. You will need to report income to the IRS, and make sure you keep all bills related to the condo for deductions. Good luck finding a good tenant.

[orange3324]

Thanks guys. It is a low-rise with 6 units and renting is okay. The owner below me was renting until they sold.

Any good references for putting together a lease?

[andrew61]

Originally Posted by orange3324

Any good references for putting together a lease?

The owner of the condo unit I'm renting just pulls a standard, generic "Chicago Apartment Lease" off the internet, along with a Summary of the Chicago Residential Landlord Tenant Ordinance.

Again, check your HOA bylaws. Some might require that you attach a list of the building's Rules and Regulations or other such documents.

[oddstray]

Originally Posted by andrew61

...Again, check your HOA bylaws. Some might require that you attach a list of the building's Rules and Regulations or other such documents.

Even if they don't require it, it's a good idea to include the HOA R&Rs in your lease.

[snoylekim]

Our association is for a much larger building (200+) units that allows rentals. I'll share what works for us, and is also probably relevant for you .I'm not an attorney and not offering legal advice ; I would say that you might want an attorney to review your lease , especially if you use a 'Chicago form' with some additions .

We have a minimum lease term of 1 year - the board can approve exceptions, but not under 6 months, so effectively it works out to a year . The Chicago Landlord Tenant Ordinance has some provisions for subletting; you might want to ask how you're impacted in your situation .
We require a clause in the lease that effectively states that any violation of the association bylaws and rules constitutes a breach . We also require that renters are provided a copy of the bylaws .
You probably want to discuss any 'exit' provisions in your lease just in case you need to sell the unit .
it goes without saying that you do not want to be in a foreclosure situation , and you also want to stay current with your association assessment payments; there are remedies that the board can take that will effectively deprive you of your rental income .
Be familiar with the Chicago Landlord Tenant Ordinance . You will probably be subject to most of the provisions . When you rent a condo, there are three parties; you, the Condo Association, and your tenants . The triangulation of these can get strange if not addressed up front. Good Luck !!