Homeowners in Chicago who are looking to purchase a new home and rent out their current home must take proper precautions to be cash flow positive.
Changing Your Mindset - Becoming a Business Owner
- Properly forming an Illinois Limited Liability Company (LLC)
- Executing a Quit Claim Deed from themselves personally into an Illinois Limited Liability Company
- Hiring a real estate broker to obtain qualified tenants
- Engaging a real estate attorney to review and/or draft your lease
- Consider a property management company to handle repair issues and rent collection.
Steps 3-5 are particularly important for properties located in the City of Chicago and Evanston. This is because these municipalities have strict Residential Landlord Tenant Ordinances (RLTO) to protect tenants.
Beyond failing to maintain a habitable property and failing to provide essential service, tenants in these municipalities can have claims against their landlords for actions and/or inactions, including, but not limited to: