City of Chicago laws and lease agreement practices as a landlord

[Rachel Margis]

Hi Bigger Pockets Chicago community!

I am a beginner investor in the city of Chicago and are looking to invest in my first small multi-family property (2-4 units) via house hacking. Given the landlord/tenant laws in the City of Chicago, what are some things that would be good to include/adjust/not include on a lease to protect me as a landlord that's a good practice? For example, my agent told me that it's best to not include a security deposit due to certain laws and tenant rights the city has.

Any tips, suggestions or anything would be appreicated. Thank you!

[John Warren]

@Rachel Margis! Great to see your name pop up again! 

The city of Chicago itself has its own landlord tenant ordinance. Most of the risk for landlords is focused on security deposits, which is why very few people still use them. The move in fee eliminates a lot of the risk. 

The other big thing is to use the CAR lease with all the addendums that it comes with. Compliance with these simple things at the front end will protect you from most of the risks. Actually following the day to day management stuff is simple (proper notice to access units, not doing illegal lock outs, etc).