chicago apartments

chicago residential landlord and tenant ordinance

the chicago landlord's guide to security deposits

Tuesday, May 10, 2011  |  andrew

if you’re a landlord, you’re lucky if you’ve never been rudely surprised by a lawsuit claiming you violated the city’s notoriously tenant-friendly residential landlord tenant ordinance. the crlto (as it’s nicknamed) is a chicago municipal ordinance whose express purpose is to regulate rental agreements covering the vast majority of dwelling units within the city. it can be found in chapter 5-12 of the chicago municipal code.

the penalties that the crlto imposes on landlords are often grossly disproportionate to the infractions, largely because the ordinance allows tenants to recover their reasonable attorney fees and court costs, even in legal proceedings brought to recover something as nominal as a $100 statutory penalty. what’s more, there are dozens of chicago lawyers who specialize in representing tenants in these types of cases. these lawyers aggressively hunt for clients, knowing that a landlord who may have unwittingly violated the ordinance in even the most minor respect will end up having to pay the tenant’s court costs and fees. over the years, thousands of chicago homeowners and part-time landlords have been forced to pay hefty sums, routinely totaling in the thousands of dollars, for failing to comply with the crlto, even in cases where the tenant was never actually harmed.

the most common pitfalls for landlords under the crlto stem from the collection and administration of security deposits. chicago landlords should be aware, however, that security deposits are also regulated under two illinois statutes, the security deposit interest act, 765 ilcs 715/0.01, and the illinois security deposit return act, 765 ilcs 710/.01. the obligations imposed under the crlto are generally more onerous than those under the illinois acts, so, for the most part, landlords will be in compliance with state law by virtue of complying with city law. but not always (as will be explained later in this guide).
 
in the hope of saving landlords from expensive litigation that ultimately raises the cost of living for all tenants, domu offers this manual to the chicago landlord community.
 
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for the complete guide in pdf form, go here.
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tenant guide: something wrong in your apartment? contact your landlord

Thursday, April 07, 2011  |  john

if you don't have any problems--big or small--while living in your apartment, that's awesome.  but you're probably in the minority.  when something goes wrong, contacting your landlord in writing, believe it or not, is the way to go.  here's what you need to do and why it's important to keep a record of the messages.

resolving problems

the chicago residential landlord tenant ordinance sets forth, in surprisingly plain english, exactly what you should do in the event your landlord is not maintaining the premises in a fit and habitable condition (assuming the lease is governed by the municipal code) or in the event that your landlord is failing to make even minor repairs.  the first step, not surprisingly, is to deliver a written notice to the landlord specifying the exact problems with the apartment.  (this is merely a cursory summary of your rights and obligations.  if you should ever have a problem with the habitability of your dwelling unit, consult the crlto, which can be found online, or hire an attorney.)
 
communicating in writing with your landlord is an excellent practice.  even in cases where you are requesting simple repairs that don’t really impact the overall habitability of your apartment, you should correspond in writing and retain a photocopy of your letter.  if the problem is urgent, send a letter by certified mail, return receipt requested, send a fax and retain the confirmation sheet, and send an email too.
 
the crlto sets forth in great detail all the remedies available to aggrieved tenants, including the withholding of rent in certain circumstances.  rent withholding can be a risky proposition, so you should consider seeking counsel (from a public legal services organization if need be) before taking any such action.
 
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for more insight on these issues, see this post from the the metropolitan tenants organization.
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tenant guide: what you need to know about security deposits

Thursday, March 31, 2011  |  john

if you read one section of our tenant guide, make it this one.  if you know this information about security deposits, you'll be ahead of the game.  andy explains everything you need to know about a security deposit--what it is, what it means for you as a tenant (and for your landlord), and, if you're asked to pay one, how to get it back.

security deposits

a security deposit is money you will probably be required to pay up-front to protect the landlord against damage to the apartment or unpaid rent. the typical security deposit is one-month’s rent, although some landlords may request more, and there is no law that limits the amount of security deposit that a landlord may require or hold. some landlords even require the first month’s rent, the last month’s rent, and the security deposit to be paid simultaneously at the inception of the lease. this is less common, and tenants with good credit should think long and hard before committing to this.

the chicago residential landlord and tenant ordinance (or crlto) requires a landlord to hold all security deposit funds in a federally-insured, interest-bearing, segregated account, to provide the tenant with a receipt, and to disclose the identity of the financial institution at which the funds are held. the crlto also requires the landlord to pay annual interest on the security deposit funds (at a rate determined by the city of chicago), provided the funds are held longer than six months. within 30 days of the conclusion of your tenancy, the landlord is required to supply you with a statement of the cost of repairing any damage you caused at the apartment (ordinary wear and tear excepted) and to refund the balance of the security deposit (or the entire deposit) within 45 days.

if the landlord commingles the security deposit, fails to pay annual interest, or fails to refund the balance of the deposit within 45 days after the termination of the lease, the tenant may recover an amount equal to double the security deposit, plus interest and reasonable attorneys’ fees. this punitive and draconian ordinance is legendary in chicago, and more than a few landlords have been taken to the cleaners for failing to comply. a copy of the crlto can be found here.

in fact, because the crlto imposes such harsh penalties, and because lawsuits based on technical violations are so common, landlords have begun moving away from security deposits. it is now increasingly common for landlords to demand a nonrefundable “move in fee.” (this is separate from the “move-in fee” that high-rises sometimes impose on new tenants to compensate for loading dock and elevator usage or for repairs to anticipated nicks and dents.) a move-in fee assessed as an alternative to a security deposit can be steep, sometimes as much a half a month’s rent. it eliminates the need to tie up a substantial amount of cash for a full year, but it’s a hefty price to pay, and you don’t get the money back even if you vacate the apartment in pristine condition. in fact, you’ll still be legally liable for any damage.

to ensure the maximum possible refund of your security deposit, carefully inspect the apartment for any damage before or immediately after you move in. bring the damage to the landlord’s attention immediately and, if possible, take photographs to protect the record.

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for the rest of our posts from our tenant guide, go here.

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