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Landlord Tenant Representation

Legal Services:

·         For Tenants

·         For Landlords

·         Commercial – Retail – Office Tenants & Landlords

·         Eviction (Forcible Entry and Detainer)

·         Chicago Residential Landlord Tenant Ordinance (RLTO) with explanation.

o    Breaking your lease

o    Landlord liability

o    Tenant Liability

·         Security Deposit Return Act

·         Security Deposit Interest Act

·         Sample Cases

 

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FOR TENANTS:

 

Are you renting an apartment, condo or house in Chicago, Evanston, Mount Prospect or other municipality in Illinois?  Madison Group LLP represents tenants rights in Chicago and other municipalities in disputes with landlords who do not follow the rules.  If your landlord is is not complying with the strict laws which have been put in place to protect tenants, he may have to pay you!  You may be entitled to double your security deposit.  You may break your lease early.  The State of Illinois and various municipalities like Chicago (RLTO or Residential Landlord and Tenant Ordinance) and Evanston have enacted laws to protect renters like you. 

 

If your landlord has not done what they are supposed to do according to your lease or failed to comply with the local rules, contact the attorneys at Madison Group LLP for a free review of your matter.

 

·         Were you given a receipt for your security deposit?

·         Did you receive your full security deposit after moving out?

·         Did you receive a copy of the RLTO?

·         Did you receive a receipt of your security deposit?

·         Did your landlord maintain the property?

·         Did you get locked out of your apartment?

·         Were you improperly evicted?

 

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FOR LANDLORDS:

 

Landlords: be aware!!!  Most landlords are not aware of the strict rules imposed by the City of Chicago and other municipalities, like Evanston, Mount Prospect, Oak Park and many others.  Remember, knowledge is power!  What may seem like a minor requirement can cost you a lot of money.  For example, in Chicago, if a landlord does not maintain security deposits in a segregated interest bearing bank account you will have to pay double the security deposit to the tenant.  Though there are a few exceptions to the rule, but it is better to be safe than sorry.  Don’t trust your leasing agents or property managers because they, too, are most likely unaware of  the rules.  Regardless of the actions of your agents, you, as the landlord, are liable.

 

If you are a landlord, it is important to make sure you comply with the rules today before it is too late.  Contact the attorneys at Madison Group LLP for a free review of your leasing matter.

 

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COMMERCIAL – RETAIL – OFFICE LEASES

 

Are you a landlord or tenant of a commercial, retail or office property.  Renting a space for business is very different than renting an apartment.  Unlike renting an apartment, there are very few laws to protect tenants of commercial or retail spaces.  Most commercial lease terms are for many years and some as long as 10 and 15 years.  Because you are renting a property for long periods of time, it is important, both as a landlord and tenant, that the lease accurately and effectively represents what the each party’s responsibilities are.  Also, there are various types of leases including triple-net leases, gross leases and net leases that can be very long and complex. 

 

Everything in a commercial lease, small or large, can be negotiated.  Regardless of what’s fair and what’s not, the terms of your lease are what will be upheld in any court of law.  Therefore, it is important to review your lease with an attorney experienced in commercial leasing to best protect your needs, both as a tenant and as a landlord.  A simple oversight of any lease provision can make things ambiguous and unenforceable, and can be costly to the tenant, landlord or both.

 

For a free consultation regarding your commercial, retail or office lease contact the attorneys at Madison Group LLP. 

 

·         Is your tenant not paying rent?

·         Is your tenant withholding rent for repairs, when the lease states it is tenant’s responsibilities?

·         Is your landlord charging you for common area maintenance, insurance and property taxes?

 

Contact us for a free consultation at (312) 251-6005

 

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Chicago Residential Landlord and Tenant Ordinance

(Download the Chicago Residential Landlord and Tenant Ordinance)

 

This is intended to be a brief explanation of important sections of the Chicago Residential Landlord and Tenant Ordinance (RLTO), Chapter 5-12 of the Chicago Municipal Code.

 

Purpose & Scope (5-12-010): The RLTO is to be liberally construed to promote the public heath, safety and welfare of its citizens and establish the rights and obligations of the landlord and tenant.

 

Exclusions (5-12-020): This provision defines what properties are subject to the RLTO and what is not.  Simply, every property in the City of Chicago is governed by the RLTO.  However, there are some small exceptions, listed below, unless landlord is attempting to circumvent the RLTO.  Properties that are subject to the RLTO should strictly comply with the RLTO or may suffer consequences as much as loss of 2 months rents for failure to comply and permission to break the lease.

 

                Exceptions to the RLTO:

·         Owner-occupied buildings with six units or less;

·         Hotels, motels, inns, tourist houses, rooming houses and boardinghouses as long as unit has not been occupying for 32 or more continuous days and pays month rent.

·         Housing by hospitals, convents, monasteries, extended care facility, asylum or not-for-proft home for aged, temporary overnight shelter and dorms.

·         Purchasers of a real estate prior to transfer of title

·         Sellers of real estate after transfer of title

·         Employees of landlord whose occupancy is conditional upon employment in or about the premises

·         Cooperative housing

 

Tenant Responsibility (5-12-040): Tenants should comply with provisions of municipal code; keep the units in safe condition as possible; dispose of all ashes, rubbish, garbage and other waste; keep all plumbing fixture as clean as possible; use all electrical, plumbing, sanitary, heating, ventilating, air-conditioning and other appliances in a reasonable manner; to not deliberately or negligently destroy, deface, damage, impair or remove any part of the premises or knowingly permit any person on the premises with his consent to do so; and not disturb neighbors peaceful enjoyment of their premises.

 

Landlord’s Right to Access (5-12-050): Tenant should allow landlords reasonable access to enter the units for repairs or improvements with 48 hours notice between the hours of 8am to 8pm, unless in emergency situations or otherwise agreed upon.

 

Landlords Repair Responsibility (5-12-070): Lanlords should maintain the units to comply with Chicago municipal codes.

 

Security Deposits (5-12-080): 

(a) Lanlords should hold security deposits in an federally insured interest bearing account in a bank, savings and loan association or other financial institution located in State of Illinois.  Landlord should not commingle Landlord’s assets with the security deposits.  Security deposits should not be subject to clams of any creditors of the landlords.

 

(b) Landlord or Landlord’s agent who receives a security deposit from tenant or prospective tenant should receive  a receipt indicating the amount of such deposit, name of person receiving it, the name of landlord, and date on which it is received, and description of dwelling unit.  If landlord does not provide a receipt, the tenant is entitled immediate return of security deposit.

 

(c) Landlords must pay interest on security deposit within 30 days after the end of each 12-month rental period by cash or credit to be applied to the rent due.

 

(d) Within 45 days after tenant vacates the unit or within 7 days after the date that the tenant provides notice of termination pursuant to Section 5-12-110(g), the landlord must return the security deposit or balance thereof with required interest.  Landlord may deduct for unpaid rent, reasonable amount necessary to repair any damaged caused by tenant, reasonable wear and tear excluded.  If landlords is deducting for damage caused by tenant, the landlord should deliver or mail to the tenant within 30 days an itemized statement or actual cost of repairing or replacing each item on that statements, attaching copies of the paid receipts for repair or replacement.  If estimated costs is given, landlord shall within 30 days of the dte of the statement showing estimate costs provide copies of paid receipts of actual costs or repairs or certification if landlords employee is used.

 

Tenant Remedies (5-12-110):  If the landlord fails to materially comply by failing to maintain building structure; maintain floors with safe load-bearing requirements; requirements for width, construction, and location of exits, exit, stairways, fire escapes or directional signs; smoke detectors, sprinklers, fire alarm; heating facilities or gas-fired appliances; heat or hot water; hot and cold running water; foundation, exterior walls or exterior roof, rodents; floors and interior walls; windows, exterior doors, provide lock or security devices; deadlatch locks, deadbotls, sash or ventilation locks, front door window or peep holes; screens were required; stairways and porches; basement or cellar; accumulation of stagnant water; exterminate insects, rodents or other pests; supply or maintain facility for refuse disposal; plumbing facilities, piping, fixtures, and appliances.  If the landlord materially does not comply with rental agreement tenant may deliver a written notice to landlord specifying that landlord comply with no less than 14 days after receipt of notice, and landlord does not remedy, then lease shall terminate, and tenant must deliver possession of unit within 30 days after the expiration of the 14 days notice.  However, if the tenant does not leave within the 30 day period, then the lease shall remain active.

 

If there are minor defects, and the reasonable cost of compliance does not exceed $500 or ½ of monthly rent, the tenant may recover damages for the material noncompliance or may notify the landlord in writing of his intention to correc the condition at the landlords expense.  This section is not applicable if the reasonable cost exceeds one months rent.  If landlord does not comply after 14 days written notice, then tenant may have work completed at reasonable cost and provide paid receipt of work and deduct from rent.  This section does not apply if tenant caused the condition deliberately or by negligence.

 

Landlord Remedies (5-12-130): If tenant does not pay rent or any portion of rent unpaid when due and fails to pay within 5 days after five day written notice by landlord, the landlord may terminate the rental agreement.  A landlord may also maintan an action for rent and/or damages without terminating the rental agreement.

 

If tenant fails to materially comply with the lease, the landlord may deliver 10 day written notice to tenant specifying the noncompliance, and if the noncompliance is not remedied after 10 days from receipt of notice the landlord may recover damages.  If noncompliance was willful, landlord may recover reasonable attorney’s fees.

 

 

Lease Agreement Terms (5-12-140): No lease may provide that the landlord or tenant agrees to waiver or forego rights and remedies under the RLTO; confess judgment; limiting landlord liability; waiver written termination; right to jury trial; attorneys fees in addition that provided by court, statute, or ordinance; either party may cancel or terminate lease at different times; excess late fees other than provided by RLTO; discount on rent for prepaid.  Any provision in the lease is unenforceable and tenant may recover actual damages sustained due to its enforcement.  If the landlord attents to enforce a provision then tenant may recover two months rent.

 

Retaliation by Landlord (5-12-150): RLTO prohibits landlord for retaliatory action.  If landlord is found to have retaliated then tenant may recover two months rent or twice the damage sustained

 

Threats/Locks/Utility Cut off by Landlord (5-12-160): Landlord cannot threaten or attempt to oust a tenant without authority of law, by plugging, changing, adding or removing any lock or window from unit. Landlord cannot block any entrance into unit, remove doors or window, interfere with services to unit (electric, gas, water, heat, etc).  If there is a violation, a complaint shall be filed with the Chicago Police Department for investigation and determine whether a violation occurred.  If landlord is found guilty, the landlord shall be fined between $200-500 for each day of the violation.  Tenant may be entitled to recover two months rent.

 

Summary of Ordinance Attached to Lease (5-12-170):  A copy of the RLTO summary shall be attached to each written lease when initially offered to any tenant or behalf of a landlord for new lease or renewal.  If an oral agreement, a copy must be given to tenant.  If landlord fails to comply, tenant may terminate the lease by written notice with the date of terminate no later than 30 days from date of written notice.  Tenant may be entitled to recover $100.00 in damages.

 

Attorney’s Fees (5-12-180):  the prevailing party in any action brought using the RLTO may recover reasonable attorneys fees and costs, except in forcible entry and detainer actions(evictions).

 

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 Illinois Security Deposit Return Act

 A lessor of residential real property, containing 5 or more units, who has received a security deposit from a lessee to secure the payment of rent or to compensate for damage to the leased property may not withhold any part of that deposit as compensation for property damage unless he has, within 30 days of the date that the lessee vacated the premises, furnished to the lessee, delivered in person or by mail directed to his last known address, an itemized statement of the damage allegedly caused to the premises and the estimated or actual cost for repairing or replacing each item on that statement, attaching the paid receipts, or copies thereof, for the repair or replacement. If the lessor utilizes his or her own labor to repair any damage caused by the lessee, the lessor may include the reasonable cost of his or her labor to repair such damage. If estimated cost is given, the lessor shall furnish the lessee with paid receipts, or copies thereof, within 30 days from the date the statement showing estimated cost was furnished to the lessee, as required by this Section. If no such statement and receipts, or copies thereof, are furnished to the lessee as required by this Section, the lessor shall return the security deposit in full within 45 days of the date that the lessee vacated the premises.

Upon a finding by a circuit court that a lessor has refused to supply the itemized statement required by this Section, or has supplied such statement in bad faith, and has failed or refused to return the amount of the security deposit due within the time limits provided, the lessor shall be liable for an amount equal to twice the amount of the security deposit due, together with court costs and reasonable attorney's fees.

 


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 Sample Cases

 

Payment of Interest on Security Deposits:

 

In the Illinois case, Lawrence v. Regent Realty Group, Inc., this case involved a multi-year lease and tenant had paid security deposit for the apartment and a $100 security deposit for the tenant’s pet.  Landlord had properly paid interest on the apartment security deposit but did not credit tenant for the interest on the $100 pet deposit.  The court stated that the failure of the landlord to pay interest, even if it was not willful, was not relevant.  The only thing that mattered was if the landlord complied.  The landlord did not pay interest as required and therefore had to pay double the security deposit as required by the RLTO

 

If you did not receive proper interest or return of your security deposit, contact the Attorneys at Madison Group for a free consultation.  Remember, all consultations are free and you may be entitled to DOUBLE your security deposit. 

 

“Owner Occupied” Exception Cases:

 

The RLTO applies to residential buildings in Chicago and one of the exceptions are “owner occupied” buildings with 6 or fewer units.  In Detrana v. Such, a tenant sued the landlord claiming that the landlord violated the RLTO and was NOT “owner occupied.”  The property was a two unit building and one of the owner lived in the other unit.  The tenant argued that even though one of the owners lived in the building, he was not in “control” of the building and the owner who did not live in the building was in control.  The court held that if he was a legal owner, then the RLTO does NOT apply.

 

In Allen v. Lin, the court found that town homes are subject to the RLTO.  In this case, there were rows of townhomes and approximately 6 townhomes were adjacent and shared common walls.  The owner rented a townhome and lived two houses down.  The Tenant sued the landlord for violation of the RLTO and succeeded.  This case helped clarify was the word “building” meant for the “owner occupied” exception to the RLTO.  The court found that if there are firewalls separating the townhomes then they are considered separate buildings for the purposes of the RLTO.  Also, it is important to note that Condominiums are considered separate.  So, unless the landlord lives in the Condo or townhouse, it is subject to the RLTO.  On a side note, landlords are advised to be safe than sorry, and simply comply with the RLTO even if they believe it does not apply to them.

 

If you did not receive a copy of the RLTO, contact the Attorneys at Madison Group LLP for a free consultation.  Remember, all consultations are free.

 

 

Commingling of Security Deposit:

 

In Turner v. 1212 S. Michigan Partnership, the court clearly stated that if the security deposit is commingled with landlords other assets then there is a violation of the RLTO.  The landlord stated that they maintain a security deposit trust account and that funds are transferred from operating accounts to trust accounts regularly but could not prove it at the time.  The court requested further investigation into the matter to determine if there was actual commingling.  NOTE:  It is recommended that landlords not deposit security deposit in accounts unless it is an account specifically for security deposits per the RLTO.  We advise landlords to receive security deposit check and rent checks separately to prevent commingling or deposit money into security deposit trust account and deduct the rent from the trust account to prevent commingling.