WARNING - Know Who You Are Working With

Would you let a stranger into your home?  Of course not.  Yet, every day well meaning landlords place their property at risk by failing to do their homework before listing their property for rent with an apartment broker.  When you list a property and give that person keys or access to your property you are bestowing a great deal of trust in the individual or company.  Have you made sure that they are worthy of that trust?  Here are some basic questions you should ask:

1.  What is the company or individual's experience?  Delve deep here. Ask how long they have been in the business, where they have rented properties and how many deals have they closed.  Ask for references from prior landlord clients and call them. Is the company and the agent a member of a professional association of realtors?

2.  What is the Company's name and how long have they been in the brokerage business?  You would be amazed by the number of rental brokers that have emerged over the last year.  Its fairly easy for any inexperienced broker to pass and exam, throw an add on Craigslist and starting calling landlord's for listings.  Does the company have a real office (as opposed to the trunk of their car or a "virtual" office).

3.  Is the Company insured for liability  against accidents?  Demand liability coverage and ask for a copy of the policy.  A reputable broker will take no offense.  Consider the fact that it is you that can be named as a defendant if there is an accident at a showing.

4.  Is the company properly licensed?  Ask to see a copy of the agent's "pocket card".  All licensed real estate agents are required to carry a pocket card showing that they are licensed.  Check with the Illinois Department of Financial & Professional Regulation to verify the agent's license.  Again, no reputable agent will take offense.

5.  Is the agent covered by errors and omissions insurance?  Ask for a copy of the policy.  If they do not carry coverage, do not list your property with that agent.  Errors and omissions can offer protection should the agent make a mistake in his representation of you in a leasing transaction.  Don't underestimate what the potential liability can be.  For example, many landlords are shocked to learn that tenants can recover two times the security deposit amount, plus the deposit, plus attorney's fees for simple errors like failing to properly create a receipt or lease.

Following these simple steps will go a long way toward protecting yourself and your property.  If you have questions or concerns ask for additional information from your Rent Smart agent.  Rent Smart is a licensed Illinois real estate broker corporation with five locations located throughout Chicago and 150 properly trained and licensed agents.  All Rent Smart agents are covered by liability and errors & omission insurance policies.

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New Interest Rates for Chicago - Time to Update Your Lease

On December 31, 2009, the City of Chicago announced the security deposit nterest rate for all 2010 leases subject to the Residential Landlord Tenant Ordinance ("RLTO").  The new rate is .073%.  It is important that landlords update their lease forms to reflect proper disclosure of the new rate to be in full compliance with RLTO.  Failure to comply can expose a landlord to significant liability.

Consult with your own legal counsel to learn more or contact a Rent Smart agent for a reference to an attorney familiar with these matters.

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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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