All Forum Posts by: Carole M.

Thanks to Anthony, Mindi and David for their valuable posts. I hope others will join in and share their knowledge.

Several years ago I purchased a "Landlording Kit" by Socrates.com from an office supply store. This Forms Kit came with a User Manual with 21 forms and a CD with other forms. This was invaluable and I used many of the forms, including Pet Agreement, Rental Credit Application, Security Deposit Receipt, Tenant Information Sheet, Lead Paint Disclosure, Garage/Parking Space Lease Agreement etc. An Illinois approved Residental Lease was included, but many municipalities, including City of Chicago require their own approved lease form, so checking with your local municipality is important. These kits/forms are also available Online and are listed by state.

Any and all suggestions that others have for new landlords, would be greatly appreciated.

I found a local contractor whose main business was tub refinishing/glazing. I had a two flat that we were rehabbing and I tried him for tub #1 and he did a beautiful job, and then gave him the contract for tub #2. The cost per tub was $250.00 and he gave a 5 year guarantee on the finish. He also gave a checklist of care instructions, which I gave to the tenants and attached to the lease. The care instructions were simple, "use a non abrasive cleaner and sponge for cleaning after every use".

I would contact the local universities in your area and ask to put up a notice of apartment for rent. I got 3 young college ladies for a 3 bedroom and they all split the rent. I even found that somme of the parents were willing to assist with their share of the rental as per the rent checks that came to me. They were very good tenants and every year, one of the tenants graduates and moves on, but they still keep the apartment.

When we rehabbed, we pulled up all carpets and found that the old wood floors could be sanded/polished/waxed ,so I then hired someone to sand/polish/wax the floors in all rooms and they turned out beautifully. Tenants really liked the hardwood floors and put down their own area rugs.

Make sure you keep good records of Income and Expenses as you will be required to file a tax return for the LLC every year, starting this year.

Now is the time to sit down with a tax pro.

When I rented our two flat after rehabbing, I found the best way to attract prospective tenants was to to put a large free standing sign in the front yard. (I got it at a local hardware store.) I then put my phone number and # of bedrooms on the sign. I deliberately left off price. I got a stream of calls and let them go to voicemail. I then called back and I arranged to have an Open House on a Sunday afternoon between 1-3 and invited all. Those really interested came and were given an application to complete. This application was a credit application/rental aplication. Anyone really interested took the application. I found two quality tenants and they lasted for 2 years and then I sold my interest to my partner/sibling.

Also, I purchased a "Landlord Kit" from an office supply store. This kit had the credit app/move-in/move out forms/pet policy, lease plus other forms. The lease of course could not be used as many municipalities require their own approved form of lease for rentals and you will have to check with your local municipality. This kit also made a novice look like an experienced landlord.

Another advantage of the front yard sign is that you attrach persons familiar with the area.

Anyway, good luck.

I too, live in Morton Grove. The south side of Chicago is vast and changing. You must be comfortable going to and from the area. I would start by getting a realtor in the area and ask them to show you properties and find out about the neighborhood. I would not personnally invest in any area that I could not feel safe in visting.

In Illinois, an LLC is registered with the SofS. The name of the Manager and also the name of the Registered Agent are both on record with the SofS. Anyone can look up the LLC and find out who is the Mgr and also Reg. Agent and contact them. You need to check your states laws to see if the Reg Agent can also be Mgr.

I had an LLC and the documents were prepared by a very good attorney. If this ever gets to litigation, you will need an attorney who approves of your Articles of Organization and can back you up. The monies spent are well worth the cost of having an attorney prepare the documents. Also, you will have access to legal counsel that you can call for advice, which is very important.

Tom
It could be a matter of siblings/owners not getting along. It could be that there are future repairs that need to be done and they don't want to do them. You need to look at the age of the buildling, and the general condition of the property, then get an inspection and appraisal done. You would also want to see their financials. If they have it in an LLC then there is a tax return that you can view for a few years and would assist you in your decision making.

I jointly co-owned a property in
Chicago, IL with my sibling and sold my interest because it was better that there be one owner. The property was a 2 1/2 flat and making a decent income, but I figure I could do more with buying a property myself and being sole owner.