Chicago Landlord

Public Act 97-999 (HB 5314) now allows you to email itemized damage statements in addition to mailing them.   Basically if you are going to keep any part of the security deposit, because of damage (or past due rent), you need to mail an itemized statement to your tenants within 30days.  Now you can email it as well.   This law makes it easier to be sure your tenant receives the itemized list of deductions in the time frame allowed.

Good news for the Chicago rental market.  In the second quarter of 2012 the Chicago vacancy rate was 4% (lower than the national average of 4.5%), according to the National Association of Realtors.  Vacancy rates below 5% usually constitute a landlord's market. 

Still a great year to buy a rental property if you can find one.   If you own a building already I still recommend tenant retention whenever possible.   If you don't get along with your tenants or they are moving any way, that would be the time to consider a larger rental increase, but you might have to do some work to get more money.

If you or your tenant were born before 1946 you are probably eligible for the senior tax exemption on your real estate taxes.  If this is for a tenant the exemption can still be claimed but the tenant has to pay the real estate taxes.  I would get an accountant involved here but it might be cheaper to reduce your tenants rent, have them pay the taxes with the exemption, then to pay the higher amount yourself but get the right-off.  Once again an account would need to work the number to see if this is the case.  Worth checking out if you have senior tenants. 
http://www.cityofchicago.org/city/en/about/wards/18/serving_you/senior_citizen_exemption.htm

The TIF Vacant Building Rehab Ordinance final passed the city council in July and there is 1 million available for rehab work but only in one TIF District so far, Ogden Pulaski District.  Read more about it:
http://www.chicagohomeless.org/an-amended-tif-vacant-building-rehab-ordinance-passes-city-council-along-with-first-1-million-in-funding/
The new ordinance allows property owners to bundle several two and three flats together for one rehab development.  I think this should make the project more appealing as most of the vacant building are smaller properties.

Or to see the exact boundaries of the Ogden Pulaski TIF District:
http://www.cityofchicago.org/dam/city/depts/dcd/tif/narratives/T_161_OgdenPulaskiFA.pdf

The Cook County Board of Commisioners has a proposed ordinance that will make it a human rights violation to refuse the Section 8 voucher.   That means landlords will have to accept Section 8 tenants.  I am torn about this ordinance myself.  The county seems to be passing the buck when it comes to fair housing and the Section 8 process will be too onerous for some landlords to deal with.   There is a lot of waiting for Section 8 inspectors, and then there is a long list of repairs the landlord has to take care of and then another inspection.  I think if the county really wants to improve Section 8 rentals, they have to make the process smoother and faster for property owners.  Having said that, I believe in fair housing and this new ordinance will make the system more even and allow families to live where they want.

That is what I am planning to tell my commisioner and I recomend that you call yours and make your opinions know too.
http://www.co.cook.il.us/portal/server.pt/community/government/226/leadership

I did not realize how long it was since my last post. The good news is that I was so busy this spring that I did not have time to write any posts. The rents in Chicagoland are back to 2007 prices and vacancy rates are at an all time low. I have started to meet with a lot of real estate buyers who want to purchase a home, becuase they feel it is cheaper than renting. More good news for me. It is also a great time to buy a multi-unit building, prices and interest rates are still low, but it is getting competitive out there. A well priced rental building will only be on the market for a few days and could have multiple offers. I think next year the price on rental buildings will really start to clime as inventory is low and demand is high.

This event tonight is geared towards artist but I think it could be useful to anyone thinking of buying a rental building. We will talk about the types of properties and financing available in today real estate market.

Please join us if you can. March 28th 5-7 at the I Am Logan Square Gallery, 2644 N. Milwaukee. The event is free but please RSVP melissa@nicherealty.net

Labels: apartment buildings, landlords, real estate