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Cook County has a wide variety of properties. Grouped into several categories for group purposes…– KSN landlord/tenant attorney Jessica Ryan discusses the Chicago Real Estate Tenant Ordinance (RLTO). He will review what steps will be taken to comply with this Chicago law. (54 min.)
In each session, KSN attorneys share their experience and knowledge as they discuss legal updates, best practices, industry trends, and more.
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Since 1983, KSN has been a legal resource for real estate, homeowner, and municipal relations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant matters, and property tax appeals. We have multiple office locations, serving hundreds of customers and thousands of communities throughout Illinois, Indiana, and Wisconsin.
Nikki: You’re listening to the KSN podcast and today we’re talking about Chicago’s residential landlord and tenant law, also known as the RLTO. Welcome to the KSN podcast where you’ll hear from KSN attorneys as they share their experience and insights on legal issues related to community relations, collections, property tax appeals, and landlord tenant law. I’m Nikki, and today we’re joined by KSN attorney Jessica Ryan. Jessie practices landlord tenant law, including apartment, townhouse and landlord association law. Please note that this is a previous seminar posted on May 25, 2022.
Jessica: Hello everyone. Welcome to today’s webinar. Alright, so let’s get started. I’m Jessie Ryan. Today, I will be presenting a webinar on Chicago residential tenant law. There are many things to cover in RLTO. So, I’ll cover the parts that are really broken, but if there’s something I didn’t cover, or if you have a question that I can’t get to the end, feel free to contact me. My comments are in the discussion. So, except for that, when I finish my question film, I’ll have my phone number and email again so you can contact me anytime. Okay. So, as a background, if you are a landlord or property manager in Chicago, you may have fallen into one of the technical pitfalls of the popular residential landlord tenant law, which we call for short, the RLTO. You may hear lawyers refer to it as the CRLTO. If you haven’t been prosecuted under the RLTO, I think you may have breached it and didn’t know it, and the tenant hasn’t called you out for minor mistakes you’ve made in some of the 15 last year.
So, the RLTO is part of the Chicago city code and its purpose is to regulate the lease of properties within the city limits. So, as I’m sure you know, the tenant is very nice. Landlords are subject to heavy penalties for even the smallest offenses, and the law allows tenants to recover attorney’s fees and court costs with each lawsuit, and that’s where tenants suffer. landlord because the tenant’s proper attorneys are not bound to claim the tenant’s fees. attorney’s fees add up very quickly and are often the highest percentage of the cost to the landlord when sued under the RLTO. Moreover, in most cases, the landlord’s liability is absolute whether the breach was intentional or not. This is called the absolute liability, it eliminates the opinion of the court to listen to both sides of the story, listen to the excuse of the landlord or the reason why this violation occurred suddenly. With strict liability, the landlord remains responsible regardless of what happens. So if you are a landlord or property manager and you breach the RLTO, you are often liable for fines and tenant costs and court costs. So, it is very important that you understand the requirements of the RLTO and know what you can do to avoid all the technical problems.
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Now the RLTO is very comprehensive and covers almost all the rental properties within the city limits. It applies to every apartment and some common economy, a living unit can be from a private living unit to high-rise buildings. It is also important and important to make sure that the accommodation under the RLTO includes all facilities and other facilities used in connection with the tenant’s occupation of the premises. So, under the law are parking garages, storage areas, installation areas. So, when we talk about maintenance obligations and the like under the RLTO, maintenance obligations for a residential building, maintenance obligations for a building, a garage, a storage area, a cooling area, all of these. is included in the definition of residential category. Now, there are many exceptions for properties covered by the RLTO, and it’s common for owner-occupied buildings with six units or less.
Now, it is a common misconception that the position is for all properties of six units or less, but it is not. This exception only applies when the tenant’s primary residence is part of the building. So, for someone who owns a three-story, lives on the first floor and rents the other two units. Therefore, that person will not be subject to the RLTO, and those two pensions will not be subject to the RLTO. The law also creates exemptions for hotels, motels, bed and breakfasts, hospitals, churches, homeless shelters, and boarding houses, all of which are exempt from RLTO requirements. Property subject to a real estate contract or lease agreement is exempt from RLTO as long as the buyer or seller is in possession of the property. So, if there is a real rental house with tenants that are transferred from one landlord to the next owner, and none of those tenants live in the house, they will just sell it according to the rental agreement. , they will remain. be subject to the RLTO. They don’t get that position. One of them should be in the category.
Finally, this is important for some of our larger clients who have larger buildings and staff and need to maintain space. A unit occupied by an employee of the landlord; if such residence is based on the occupation of the property, such as residences in the manager, maintenance, supervisor, or the like, that section, such residence is excluded from the RLT as applicable their existence and connection with their work. . So, when they don’t work, they don’t live in that property.
So, let’s talk about the advantages of RLTO leasing. What are some of the requirements for renting in Chicago? First, it’s important to note that the RLTO covers both written and oral leases for new and innovative features. So, this also covers renewal leases, even if it’s just a one-page renewal that says you’re extending the term for another 12 months. Now, the legal requirements are very complicated, and the verbal consent will almost always put the landlord in Chicago under liability. Therefore, due to all the detailed requirements of the law, I always recommend that you write a lease with our office to review your lease in Chicago, to make sure that everything is in order, and that you have the additions and presentations attached to you. lease so that you never break. We often see this happen when the buyer files an eviction case, and we never saw the lease before we filed the eviction case. By law, the lease must be attached to the eviction lawsuit when we go to court
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