Renting Non-Conforming Garden Units in Chicago

[Mario Morales]

Asking for a friend: Has a non-conforming basement, zoning really. 2 exits, 3 br, nice apartment. Can she post it on zillow market place? Where do people post "illegal" basements? It obvisouly wouldn't fly with section 8? Any advice and/or experience appreciated?

[Krystyna Schexnayder]

Hi, 

As a property manager in Chicago, if a client of ours presented us with this situation, in good faith, I could not advise them to rent the unit. 

Advertising an illegal, non-conforming basement for rent, whether publicly or privately, out right violates local laws. 

Chicago's Residential Landlord and Tenant Ordinance (RLTO) and building codes require that all rental units meet zoning, health, and safety standards. Advertising a non-conforming unit without disclosing its illegal status could be considered deceptive (and fraudulent), opening the owner to major legal risks (fines or tenant lawsuits).

Even private marketing, like word-of-mouth, doesn’t absolve the owner from liability if the unit fails to meet legal requirements. If the unit does not comply with local codes (like proper egress, zoning approvals, safety standards, etc), it cannot be legally rented regardless of how it’s marketed.

The safest course of action forward, would be to bring the unit up to compliance with chicago's zoning/ building codes before attempting to rent or advertise it. 

But furthermore, consult with your attorney.

Hope this helps.

[Sarita Scherpereel]

Hi Mario- Is this a non-conforming unit or illegal unit? These words have different meanings and you're using them in your question as if they mean the same thing. Many people use these words interchangeable. Even though they do not have the same definition. Has the city issued the owner a citation that the unit needs to be decommissioned? That would make the unit illegal and they cannot rent it out. Does it have building code violations on it?

[Mario Morales]

@Sarita Scherpereel so it's in a three flat building, but the zoning says there's only two units the basement unit based on what you said it's not illegal as it hasn't been cited by the city.

[Krystyna Schexnayder]

Yes, @Sarita Scherpereel these words are used interchangeably, but @Mario Morales, both are still not able to be rented without risk. 

A non conforming unit is technically legal but it doesn’t meet current zoning (but possibly was once a legally functioning unit as a residence). Therefore still posing a risk to the owner, if rented.

An illegal unit was never legal per zoning/ building codes, and cannot be occupied without city approval.

[Michael Smythe]

@Mario Morales you can do anything you can get away with, but that doesn't mean it's right, legal or that when you get caught it will have been worth it.

[Jonathan Klemm]

Hey Hey @Mario Morales - @Sarita Scherpereel pointed out some really good questions you need to ask your friend...

You have to consider the difference between a non-conforming and an illegal unit.  

A unit in Chicago becomes illegal when there are violations on the building. Without the violations, the unit is just non-conforming, meaning it doesn't meet the current code.  IF you were to renovate a non-conforming unit, that unit would now need to be brought up to code.

When or if you rent out the unit, you, of course, run the risk of the tenant calling the city and saying the property isn't up to code, which would, in turn, cause an inspection by the city and likely result in some violations that would require you to bring the unit up to code.

These types of units are ALL OVER the city of Chicago and be rented out on a daily basis, but there is still clear risk associated with renting them out.