How to manage tenants if you are living in the same unit

[Jessica H.]

Hi everyone, I'm looking to buy a condo in Chicago and use it as my primary residence but also rent out the additional rooms to roommates. I was looking into the Residential Landlord and Tenant ordinance but it was unclear to me if my situation applies to it since it states "The ordinance covers most rental properties located in Chicago except units in owner-occupied buildings with six units or less; most units in hotels, motels and rooming houses, dormitories, shelters, employees' quarters, and non-residential rental properties, and owner-occupied co-ops". 

Does anyone have any experience they could share or resources they used to manage tenants in this situation? Also, where/how do people draft up leases?

Thanks in advance!

[Paul De Luca]

@Jessica H.

@Michael J Scanlon has experience with house hacking a condo so I think he'll be able to give you some advice here. Based on that definition I think an owner occupant condo would be exempt.

[Henry Lazerow]

You should use a Chicago realtor lease will all the disclosures. Feel free to message me and I can frwd all the 2021 docs to keep compliant.

Make sure you collect a security deposit (normally I would not recommend security deposits in chicago) as the roommates tend to just move out with no notice otherwise, even in the class A areas. People assume you won't go through the cost of suing them for breaching lease on just a bedroom. I have seen a few clients have issues with roommates where as I have very rarely seen any issues on northside renting units. Be careful who you rent to and vet much harder then you would for an apartment rental. 

[Michael J Scanlon]

Hey Jessica,

I have house hacked a condo in wicker park and I do still collect security deposits and go through all the normal processes just to protect myself. But if you’re house hacking in this manner, typically more premier locations are accessible price wise and the tenants tend to be young professionals so I have had no issues. 

[Jonathan Klemm]

@Jessica H. - If you are an owner occupant the CRLTO does not apply.  I would just follow it as normal anyways though just so you arent in a bad habit.  I'd also suggest collecting a move-in fee instead of a depoist.

I would use a CAR lease as @Michael J Scanlon suggested.