First, Your Management Team Does Not Include Any Attorneys, So This Is Not Legal Advice

That given, because of recent questions we want to provide some quick resources to our Landlord owners. The more information you have, the better the rental experience for you and your tenants.

First of course are resources you need for the Association, most of which are also available in our online library at ptcondo.com/library:

1. You will need to be qualified to rent under the present leasing policy in the Rules & Regulations: PTCA Leasing Policy
2. You will need to follow the procedures for leasing and move ins and move outs, which are conveniently outlined in our PTCA Lease Packet: Lease Packet 03.2024
3. You will need to be familiar with all the Association’s Rules and Regulations, and insure your renters learn and follow them. Even though you may be renting the unit, you are responsible for your renter, their guests and anyone present in the building associated with your unit. You’ll avoid pesky and sometimes costly fines if they don’t: PTCA Rules and Regs 03.2024
4. Finally, you’ll want a solid lease. We suggest ABOMA Form C. (ABOMA is a group that represents the interests of building owners and managing agents.) We can’t post this for you, because it is copyrighted, but you can pick them up in the office for $4. They also have nifty carbon copies so each party gets one; you, the renter and the Association.

Next, you have to understand and follow requirements of the municipality, aka Chicago. We suggest a Landlord Checklist fashioned by the Association’s legal counsel, Kovitz Shifrin Nesbit (KSN). To learn more about KSN, visit ksnlaw.com.

Because we’re clients, we are sharing this checklist right from the source. They begin with a disclaimer: “Due to the expansive range of items that a lease agreement can cover and the various amenities specific to each property, this article is should not be considered exhaustive.” The wisest approach is to consider seeking professional legal counsel to review and guide you when fashioning your lease. Here is what they suggest you include:

1. Attach the following required documents:

• The Summary of the Chicago Residential Landlord Tenant Ordinance
  • The CLRTO [5-12-170] requires that the landlord provide the most current summary, last revised in 2016, to the tenant with each lease or lease renewal, written or oral.
• The Chicago Rate of Interest on Security Deposits Summary for the current calendar year
  • Every January, the city of Chicago comptroller releases an updated summary for the year. The CRLTO [5-12-170] requires that the landlord provide the latest version of this summary to the tenant with each lease or lease renewal, written or oral.
• The Chicago Preventing Bedbug Infestations Pamphlet
  • The CLRTO [5-12-101] requires that the landlord provide this informational brochure to the tenant prior to entering or renewing a lease agreement.
• The US EPA Protect Your Family from Lead in Your Home Pamphlet
  • The Lead Residential Lead-Based Paint Disclosure Program (Section 1018 of Title X) requires that “potential buyers and renters of housing built prior to 1978 receive certain information about lead and lead hazards in the residence prior to becoming obligated to buy or rent”, including this informational pamphlet.
• The Illinois Radon Testing Guidelines for Real Estate Transactions Pamphlet
  • The Illinois Radon Awareness Act requires that this informational pamphlet be issued.

2. Attach the following documents, if applicable:

• A security deposit receipt, if the landlord accepts a security deposit.
  • The CLRTO [5-12-080] requires that, if the landlord accepts a security deposit, the tenant must receive a receipt listing: the amount of the deposit; the name of the person receiving the deposit(if not the landlord, also list the name of the landlord);, the date the deposit was received; a description of the dwelling unit; and a signature of the person receiving the deposit. We also recommend that you obtain the tenant’s signature on the receipt as well.
• Lead based paint disclosure, if property was built before 1978.
  • The Lead Residential Lead-Based Paint Disclosure Program (Section 1018 of Title X) requires that “potential buyers and renters of housing built prior to 1978 receive certain information about lead and lead hazards in the residence prior to becoming obligated to buy or rent”, including “any known information concerning the presence of lead-based paint or lead-based paint hazards in the home or building.”
• A radon disclosure, if the latest test for radon indicated a hazard and the unit is on the 3rd floor or lower.
  • The Illinois Radon Awareness Act requires that “if a lessor conducts a radon test in a dwelling unit and the radon test indicates that a radon hazard exists in the dwelling unit, the lessor shall disclose in writing to the current lessee, and any individual seeking to enter into a lease of that dwelling unit, the existence of a radon hazard in the dwelling unit.”
• A heating cost disclosure, if tenant is responsible for paying the cost of heating.
  • The Chicago Utility Cost Disclosure Ordinance requires that, if the tenant is responsible to pay the cost of heating, the landlord provide “the annual cost of service from the utility providing the primary source of heat based on energy consumption during the previous twelve months”.
• A recycling disclosure, if the property has 5 or more units.
  • The Chicago Recycling Ordinance, in effect for multi-family buildings as of January 1, 2017, requires that each tenant receive an educational flyer (developed by the landlord), outlining, at a minimum: the types of materials that can and cannot be recycled; instructions on how to properly prepare materials for recycling; the location of all recycling containers; and the name, contact information, and collection schedule of the hauler.
• A list of code violations on the property, if any occurred during the past 12 months, including common area.
  • The CRLTO [5-12-100] requires that a landlord must disclose any conditions affecting habitability to the tenant prior to entering or renewing a lease agreement.
• The association’s rules & regulations, if the unit is in a condominium, townhome or homeowner’s association.

3. Secure the following acknowledgements:

• Initials of tenant next to each section of the lease, or at minimum on each page.
• Initials of tenant acknowledging receipt of the applicable documents listed above.
• Signature of each adult tenant with date of signature.
• Signature of landlord(s) with date of signature.

Including all this with your lease may seem like an awful lot, but don’t panic. As they state, “A comprehensive lease agreement is critical to ensure that landlords have properly protected their interests.”

Perhaps you are interested in contacting KSN for professional guidance? You can reach them toll-free at 855-537-0500 or visit www.ksnlaw.com.

Also, while we are not attorneys, we are happy to answer any questions and provide any guidance we can. E-mail anytime at parktowercondo-mgmt@habitat.com.