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All Forum Posts by: Sean McKee

Sean McKee has started 27 posts and replied 204 times.

Post: Should I kick them out at the end of the lease???

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148

@Michael J. I've had a very similar situation. Tenant was rough on unit, but would pay on time and paid for what she broke.  However it started to get worse a couple years in.  She started paying late(but still paid and communicated when she would pay) and started being a little more careless with unit.  I decided to renew because she had been on my property for a while. Then she lost her job. I had to pay her to leave and fix up the unit.   In hindsight I should have not renewed lease once she started paying late consistently.  As long she pays on time and fixes stuff that she breaks keep her.  But the first sign of trouble bail out.

Post: Illinois Eviction Ban ending August

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148

Hello BP!

I have a few questions for my Illinois landlords and anybody else who might have some input.

Gov. Pritzker announced last month that the moratorium will end by August in Illinois.  This has been long overdue and it certainly bitter sweet considering Illinois moved to Phase 5 on June 11th.  I've been researching almost daily if they are any new details regarding how it will be phased out.  Has anyone heard anything?  All I've been able to find is that evictions will be sealed between March 2020 till August 2022.

The sealing of evictions records is incredibly unfair to both current and future landlords.  I've been fortunate not to have the crazy losses some landlords have faced, and have only recently faced difficulties. I had a tenant that stopped paying rent in May.  Since eviction records are going to be sealed, I have decided to go the collections route and report to the credit bureau.  Normally I would consider this a waste of time, but it is hard for me stomach that there will be nothing on their records as they have been particularly bad.  I would like future landlords to have some kind of warning signs.  Is this a route you might consider? 

Lastly, how are you gearing up legally?  What advice do you have for making sure your in the best position possible to limit future losses?  I've already gotten a hold of my attorney to try and position myself to move as quickly as possible once the eviction ban is lifted.

Thanks!

Post: Evictions across America: Landlording

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148

Also make sure to consult your attorney.

Post: Evictions across America: Landlording

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148

Do I think it will cause another housing crisis? No.  I don't believe we have the same overleveraging and subprime lending that we saw back in the early 2000s.  I do think it will cause a series a mini-crises for some smaller landlords that don't have the financial cushion to absorb losing rents for 12+ months.  Foreclosures might creep up in the next few years, but I don't believe an outright crisis. But you never know.

As far as tenants not paying and maintenance.  It is very tough and very unfair situation.  I agree with @Damaso Bautista and the fact that landlords are held to a much higher standard.  Depending on what breaks, you still might be held accountable for it despite the tenant owing money. Even before the pandemic, landlords were pretty much seen as the bad guy.  Have you tried paying them to leave?  I just recently did that with a renter that was behind on rent.  You might want to check with your local organizations to see if some of the 25 billion in back rent assistance is available.

Sorry about your situation. Hang in there!   

Post: 25 Billion in Rental Assistance.

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148

@Mary Aviles . Thanks. I’ve saved that link. I was definitely looking for more local advice. So I appreciate it.

Post: Chicago: Investing in East Garfield Park and Austi

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148

@John Warren that’s definitely an interesting insight. I definitely noticed some crazy competition when I was searching there. I will definitely have to do more research.

Post: Showing Occupied Rentals

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148

Thanks everyone for their responses. I was leaning towards not showing in person. It seems like too much of headache and liability during COVID. I normally only show occupied rentals if the tenant is of at least average cleanliness. I’ve had good luck with it in terms of preventing vacancy. However it is definitely more work than having a completely vacant unit.

Post: Showing Occupied Rentals

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148

Hello Everyone,

I actually did not have any turnover last year on my rentals, so I’m a little late with marketing during COVID. 

Are you still showing occupied rentals or have you gone full virtual? Have tenants refused to let you show it? Are they allowed to prevent you from showing it during COVID?

Thanks for any advice.

Post: Cook County RTLO passed

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148

@Connor O'Brien it didn’t specify but I imagine it would be around 1/2 of a month’s rent. Definitely seems like you will have to be careful what you charge for. 

Post: Cook County RTLO passed

Sean McKeePosted
  • Rental Property Investor
  • Chicago, IL
  • Posts 204
  • Votes 148

Hello BP and Chicagoland Investors.

The cook county board of commissioners passed the Residential Tenant and Landlord Ordinance. I found the proposed document on ChicagoEviction.com-https://www.chicagoeviction.co...                                                    

I remember seeing the original back in July and I am thankful landlord advocates were able to get some concessions. However it is still overall skewed heavily in the tenants favor.

The biggest issues for me are

1. Late fees capped at 10 dollars for the first 1,000( was originally 1,500 I think) I’m all for preventing predatory fees, but 10 dollars is not fair.Definitely lowers incentive to pay on time.

2.Vague language as to what constitutes an “reasonable fee”. You can’t charge in excess of that.

3. One-time Right To Pay and Stay- Tenant can stop an eviction order by paying all back rent, filing fees, and all other cost EXCEPT attorney fees.  Again not fair. Most landlords going to court spent weeks if not longer before making that decision. Hopefully judges are still allowed to make that call.

4. Limits on security deposits. Security deposits are limited to 1.5 times rent( the excess above 1 times can be paid over 6 months). This basically eliminates for me the ability to let people who are borderline on to my property. 

What is better than original version

1. It seems as if landlords can still charge move in fees. However you have to provide a itemized statement of estimated reasonable costs. However you definitely might run into trouble if you miscalculate something.

2. A right to remedy to breach of the security deposit law. Landlords will get two days to remedy any violation after written notice from tenant. So unlike Chicago you won’t automatically get fined double the security deposit plus attorney fees (I think).

Tenants definitely  deserve protection, and there are some justified provisions in the new ordinance. However there are ways to do it without being unfair to the landlord.

I disagree with a lot of the provisions in this ordinance. I am thankful that landlord advocates were able to get us some concessions and make this an easier deal with.   Unfortunately this will have the unintended effects of making it harder for tenants who have blemishes on their record to find quality housing.

For me personally, the biggest change will be to not rent to anyone who is borderline to my criteria. I still use security deposits thanks to the right to cure provisions. But given the current climate and this new provision it really doesn’t pay to take unnecessary risk.


What impact, if any, will this have your business?