All Forum Posts by: Sean McKee

Hello everyone - Brand new to landlording, so apologies in advance for the basic questions. I recently secured a tenant for my condo apt. The lease specifies that tenant must notify management and owner of any additional occupantsand that they're subject to board review. Management was really wishy-washy about what that means and basically told me "do whatever you want, the board doesn't really care".

Tenant lease started a few days ago and she has indicated that her boyfriend will be living in the apt effective immediatelly and she'd like an extra set of keys.  My questions are:

1. What paperwork should he complete as an authorized occupant? Management did a background check, and I was going to have him sign the condo house rules. Should he also fill out an application... Or no since he's not a tenant? 

2. Should I make the tenant sign an additional document that spells out she is responsible for her occupant, that they are required to follow all rules otherwise she may be subject to fines, etc?

3. I believe I'm required to give tenant copies of the keys upon request, correct? If they are for the authorized occupant who is responsible for returning them, just the tenant?

3. Is there any reason/benefit to make him a tenant over an authorized occupant?  The latter sounds not only easier but also more straightforward if any issues btwn the two ever arose in the future.

Thanks in advance for any guidance y'all can provide!!

@Sean McKee we do a lot of leasing, and I have leased in both markets. Cicero is really easy to fill units in as long as you have one beds or affordable two beds. We leased up over 50 units there in the past year, so I would know. 

Humboldt Park will probably be a lot more seasonal. We leased a good deal in Chicago this year, and the leasing market was red, red hot during May, June and July. I could feel it slowing down as we filled our last unit at the end of the summer. 

At this point, I would do a price drop to get the right number of showings. You need 7-10 showings normally to get the right applicant in my experience. Try to have your lease bump out a few months so you end on March 31 or April 30. Then the next cycle you will be in more in the groove for pushing rents. 

@Sean McKee - What cross streets are you at?  I think I am near by but the nomenclator east humboldt park can be misleading depending on whether you are talking about the actual park or neighborhood.

I am at Armitage & Western and have a similar 2/1, I actually pivoted to airbnb during covid because I had to drop the rent so low ($1450) that I refused to do a LTR at that rent.  I think you are probably priced right if it were summer, but may need to drop another $100 given the Chicago winter.

Most important if you are confident in your price it is often just a timing thing...the right tenant will come, but I know it's tough when you only have a couple of doors...that lost rent hurts.

 Your rent is in-line with the market based on the comps I reviewed, but most of those comps were rented in August. So seasonality is definitely a factor. Do you have high quality photos?

You may have to discount the rent a bit more if you want to fill it fast.

@Sean McKee

I see you're in IL. How did your first auction go? 

I'm considering tax lien investing as well but will likely focus on counties outside of cook.

Would appreciate your insights!

@Sean McKee

If you buy a tax lien you are not forced to foreclose on it - you have specific parameters to follow and statute of limitations - you can just do nothing and let it expire and walk away

You would lose your investment in that situation

 Where are you investing in? What city is this?