Have you recently become one of Chicago's accidental landlords, perhaps due to acquiring inheritance property? Or maybe you've encountered unforeseen personal circumstances, resulting in your need for extra income.
Regardless of the reason, here's some good news. According to ZipRecruiter.com, landlords in Chicago earn quite a hefty sum: A whopping $89,911 a year, on average!
However, to make your career as an accidental landlord pay off, you must implement the right Chicago property management strategies. But don't worry; the Yellow Key Property Management team is here to help.
Read on for real estate tips and rental property advice to help you get started on earning income from your property.
Understand Chicago's Tenant and Landlord Regulations
One of the first crucial steps accidental landlords in Chicago must take is to learn and understand the city's regulations on tenant-landlord relationships. According to the City of Chicago, these laws are all under the Residential Landlord and Tenant Ordinance (RLTO). The RLTO codifies legal matters relating to the city's rental housing, including:
- Duties and rights of tenants and landlords
- Security deposits
- Conditions affecting the property's habitability
- Remedies for tenant and landlord disputes
- Prohibition of retaliatory acts by landlords
The above laws apply to most rentals with some exceptions, such as those in owner-occupied buildings with six or fewer units.
Learn About the Chicago Fair Housing Ordinance
Another legal subject accidental landlords must be aware of is the Chicago Fair Housing Ordinance, outlined in Chapters 5 to 8 of the Municipal Code of Chicago. The law makes it illegal for housing providers, including landlords, to discriminate against and decide whether to rent to someone based on their:
- Race, color, ancestry, and national origin
- Sex, sexual orientation, and gender identity
- Age and disability
- Marital and parental status
- Source of income
- Military status
Failure to adhere to the Fair Housing Ordinance can result in lawsuits and fines. So, please master the dos and don'ts of tenant screening and placement before renting out your Chicago house.
Get a Rental Pricing Analysis
A rental pricing analysis is a strategic valuation of how much you can rent your property. In many cases, it involves researching comparable properties or "comps." You can then use their rates as a guide to set your property's fair market price.
Our Chicago rental property management company, Yellow Key Property Management, can provide a complimentary analysis.
Insure Your Property
Before signing the dotted line with future tenants, purchase landlord insurance and umbrella coverage. It can help protect you from losses arising from:
- Property damage
- Third-party liability claims
- Lost rental income
An umbrella policy can provide further protection by expanding your coverage amounts. It can be a lifesaver in cases wherein you face legal costs that exceed your standard landlord's insurance coverage.
Follow These Tips for Accidental Landlords
Even accidental landlords without prior experience can earn a hefty sum, provided they do their due diligence and enter the rental industry prepared. So, follow our starter tips; they can help you generate income from your Chicago property.
Better yet, partner with Yellow Key Property Management, our full-service property management firm. Our owners and brokers bring several decades of business, real estate, and property management expertise to the company. With the whole team supporting your business, we can help your rental thrive.
Speak with us today to get your free consultation!
