Puyallup WA, USA · Member since 2019 · 2 posts · 0 votes
Does anyone own property in Illinois? Chicago specifically?
We are buying our first rental there and wondering if there are any fees I need to be aware of on an ongoing basis above and beyond property management/property taxes, etc.?
Is rent subject to state income tax?
Other required municipality fees on an ongoing basis?
Attorney · Elmhurst, IL · Member since 2016 · 255 posts · 161 votes
6y
@John Hurlbut - Speak to your accountant RE state income tax, I am not a tax professional, but I believe that rental income is subject to local tax. There are no municipal fees, other than water and garbage, on a continuing and ongoing basis.
DONT TAKE SECURITY DEPOSITS AND DISCLOSE BUILDING VIOLATIONS WITHIN THE LAST 12 MONTHS.
HIRE A LOCAL, IL, REAL ESTATE ATTORNEY, to assist you through the process. It is and will be money well spent.
Attorney · Elmhurst, IL · Member since 2016 · 255 posts · 161 votes
6y
@John Hurlbut - Speak to your accountant RE state income tax, I am not a tax professional, but I believe that rental income is subject to local tax. There are no municipal fees, other than water and garbage, on a continuing and ongoing basis.
DONT TAKE SECURITY DEPOSITS AND DISCLOSE BUILDING VIOLATIONS WITHIN THE LAST 12 MONTHS.
HIRE A LOCAL, IL, REAL ESTATE ATTORNEY, to assist you through the process. It is and will be money well spent.
You should know that property taxes will be going up to cover the state and municipal pension funding shortfalls. You should know that there is stiff competition on the higher end rentals from newly constructed and soon to be completed apartments in Lincoln Park and surrounding areas. You should know that rents are no longer rising as they did for the last 10 years or so. And, as Vincent said, Chicago is very tenant friendly so most landlords no longer take sec. deposits but instead opt for non-refundable move-in and/or move-out fees.
Realtor · Cleveland, OH · Member since 2015 · 2k+ posts · 857 votes
6y
Tenant friendly as they come.
I would look into AIR BNB. I own a two bedroom townhouse which I personally live in. I have rented that spare room in 2019 for out oft owners, visitors for the weekend and made $7000 off! Also became a super host :)
SO I would look at a place that's close to the train lines, easy access to downtown. Then you are not limited to just long term rental but could also do short term rentals. Get the best of both worlds, msg if you have questions