Chicago Tribune Declares It's a "Renter's Market"

Today's business section of the Chicago Tribune declared its a "Renter's Market" in Chicago.  Here's a link to the story in case you missed it.   "Landlords are lowering rents as they try to fill vacancies and cover their costs."  In short, citing research from DePaul University's Institute for Housing Studies, the paper announced that vacancy rates have increased significantly throughout the city putting pressure on the smaller landlord.  Rising unemployment is cited as the biggest reason, although the DePaul study also says that  the best renters are being lured into the sales market by historically low prices and the government's $8,000 tax credit.

What's a landlord to do?  Hire Rent Smart , of course.  Our company can make sure that you are on the right side of the statistic's cited by the Tribune.  What could be worse than holding a vacant apartment going into the winter months?  A single month vacancy let alone several months can wipe out a year's return on a building.  Avoid that drastic result by consulting the experts.  Rent Smart will give you an honest evaluation of the rental market for your property and will set a price that will bring you the tenant.  Results.  Nothing else matters and Rent Smart is equipped to deliver.  We have five offices staffed with 125+ agents ready to start working for you today.  Call us and we will get started.

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Get Paid for Your Trash - Chicago Launches New Recycling Program. Will It Work This Time???

Chicago has struggled in recent years to launch a sustainable recycling program.  We can all recall the 'blue bag" program that required residents to buy their own bags in order to recycle.  That went nowhere and was then replaced with the "blue bins" that also seem to be largely ignored if they can be found at all.  Thus, it's not surprising that the city is making another attempt.  This time is just might work.  Why?  Chicago is going to try a new tactic  - paying you by the pound for your recyclables.  Yes, that's right,  the city proposes paying you for your trash!

Chicago has contracted with RecycleBank to test a recycling program with 10,000 south side households.  The program will work like this:  for every pound  of trash recycled, a household will receive points from RecycleBank which can then be redeemed on the company's web site for gift cards and discount cards at participating retailers.  RecycleBank estimates that the value of the points offered to the local community could exceed $500,000 for new business injected back into the local economy from trash.  The program launched August 1, 2009 and covers the 5th, 8th and 19th Wards of Chicago which include the Beverly, Beverly West and Mt. Greenwood neighborhoods.

Let's hope this third attempt at recycling in Chicago actually works.  The initial prospects look good.  If the City can save money by recycling and its residents see a direct benefit too, then the program stands a good chance.  For more information about the program, contact RecycleBank or Rent Smart .

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Mortgage Lenders Have Your Money - $18 Million in Cook County

Today it was reported in the Chicago Tribune that Cook County Circuit Court Clerk is holding $18 Million for 1,900 people who have had their homes foreclosed over the past year.  How can this be?  Well, prior to the real estate bust, when home prices were still stable, homes sometimes sold at foreclosure auctions for more than the amount due to the mortgage lender on the loan.  If the homeowner did no step forward in the lawsuit and claim the money, those funds were then turned over to the Cook County Circuit Court for safekeeping.  You can search the Clerk's online database at www.chicagotribune.com/default or call 312-603-5030. See the complete Tribune story here: http://www.chicagotribune.com/news/local/chi-englewood-foreclosureaug25,0,1445727.story

A few words to the wise: Never pay anyone to recover money on your behalf.  There are plenty of scammers that just want a cut of your money.  When you are due money from the state, county or city, ask for help   at the place where your money is held.  Most are helpful in helping you complete any paperwork required o get your money returned. Check out the State Treasurer's Tips of Dealing With Finding Firms.

Search the State of Illinois' database for unclaimed funds at Cash Dash and follow the online instructions.  State Treasurer Giannoulias is holding millions of dollars in unclaimed funds.  At the linked site you can search for your name or that of someone you know.

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Rents May Be Recovering Downtown

Downtown apartment rents, occupancies rise

By Alby Gallun, Aug. 24, 2009

(Crain’s) — It’s the worst of times for many real estate investors, but downtown apartment landlords can’t complain about much.

Rents and occupancies at top-tier downtown apartment buildings rose for a second straight quarter, bucking the downward trend of the broader real estate market, which has been battered by the recession and credit crisis. Leery of the lousy condominium market and possibly uncertain about their own economic futures, many downtown residents are choosing to rent rather than buy, boosting demand for apartments.

The average effective rent at Class A downtown buildings rose to $2.17 a square foot in the second quarter, up 2.4% from the first quarter, according to a report by Appraisal Research Counselors, a Chicago-based real estate consulting firm. Effective rents include concessions such as free rent.

While that’s still down 4.8% from the year-ago period, it’s a positive sign for an apartment market that usually takes a hit during recessions.

“All things considered, it’s not a terrible place to be right now,” says Appraisal Research Vice-President Ron DeVries.

The average Class A occupancy also rose for the second consecutive quarter, to 93.4%, up from 90.9% in the first quarter and 91.6% in the year-ago period.

The numbers would be even stronger if it weren’t for all the new apartment buildings on the market. Developers have built 2,098 apartments downtown since early 2008, and the so-called shadow rental market is growing as more condo owners, unable to sell their units, rent them out instead.

Demand for apartments, meanwhile, normally tracks closely with the job market, which has been awful. Chicago-area employers have cut more than 200,000 jobs in the past year.

But other factors may be playing a larger role in the current market. Many would-be buyers are renting instead either because they’re worried about condo values falling further or because they can’t get a loan to finance a condo purchase. Others may be nervous about taking on a mortgage given the state of the economy, says Greg Mutz, CEO of Amli Residential Partners LLC, a Chicago-based apartment owner.

“People are worried about their jobs,” he says. “When you’re in that kind of mind-set, you don’t want to be illiquid, and you want to have flexibility.”

The apartment market is “not as bad as I thought it would be,” he says.

Amli completed construction last year on a 440-unit building at 900 S. Clark St. While the high-rise is more than 80% leased, it faces competition from other new buildings in the South Loop, where developers have been especially busy.

Compounding the supply problem, Chicago-based developer Centrum Properties Inc. recently decided to convert a new 342-unit condo project at Roosevelt Road and Clark Street into apartments.

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Security Deposits - Why They Are Disappearing in Chicago

If you live in Chicago and you have rented an apartment recently, you may have noticed the fact that more and more landlords are not requiring security deposits.  In fact, most large managed apartment buildings have done away with deposits altogether.  What is behind this trend?

Certainly, it could be that Chicago landlords recognize the dire economic times we all live in and are loosening their requirement out of a well-placed sense of rental brotherhood.  Do you buy that?  Didn't think so.   Then what is behind it?

The answer: LAWYERS.  Yes, that's right, for once, law firms are on the side of the little guy.  Chicago lawyers have identified the Chicago Residential Landlord Tenant Ordinance ("RLTO") as a perfect tool to go after the deep pockets of landlords recovering thousands of dollars for their clients while pocketing a little for themselves in the process.  RLTO places significant burdens on Chicago landlords when it comes to security deposits.  Among the requirements are that the landlord give a proper receipt for any security deposit that it accepts, that the deposit not be co-mingled with the landlord's money, and that the deposit be returned or properly accounted for upon lease termination.  As easy as it seems, landlords are having difficulty following RLTO and the Court in Chicago have been unforgiving in their strict enforcement.  The result is that many landlords have been faced with large judgements and class action claims that threaten their bottom line.  

In response, many landlords have chose to drop the requirement that tenants post a security deposit altogether.  This is a windfall for Chicago tenants.  No longer will tenants be required to come up with an extra month or sometimes two months for a security deposit freeing up substantial amounts for other needs.  Deposits are often replaced with nonrefundable "move in" or "processing fees" which may or may not be returned to the tenant or credited against the rent due.  These fees average about $250, but can vary widely.

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South Loop Office Opening October 1, 2009

Yes, we are growing again.  Rent Smart is pleased to announce that we are opening of fifth office on October 1, 2009.  The new office will be located at 2000 South Michigan Avenue in the South Loop in the historic Locomobile Lofts building.  We are excited that we will now have a new presence in this area to better serve our clients.  We welcome you to stop into our new office to say hello.  And, of course, if you are in the rental market please keep this location in mind.  We are here to serve all of your rental needs.

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Real Estate School Is Starting August 27, 2009. Enroll Today - It's FREE for Our Agents.

Rent Smart has partnered with the Chicago Real Estate Institute to offer the pre-licensing salesperson course beginning August 27, 2009.  CREI is one of the most respected and established real estate schools in the Chicago area.  The classes will be held at Rent Smart's office located in West Town at 1900 West Chicago and at the corporate office located in Edgewater at 5650 North Broadway.  The course will be taught exclusively by Chicago attorney Thea Pazen .  Thea takes great pride in making sure that all of her students exit the course with the knowledge required to not only pass the state examination but also garner the tools required to launch a long and successful real estate career.  We are proud to offer the course to our agents FREE OF CHARGE because we are committed to having all of Rent Smart's agents licensed as sales agents to better serve our growing client base.  

If you are interested in becoming a licensed agent, please contact Anna at our corporate office at 773-275-2700 to learn more about enrolling in Rent Smart's next course and joining our team. Learn more about CREI at www.ChicagoRealEstateInstitute.com 

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