The Accidental Landlord’s Guide to Lease Renewals
- 11
- Apr
If you are like many of the landlords I've worked with in the past 12 months, you're pretty new to this whole rental thing. You found yourself unable to sell your home for a price that was worth the effort, so instead you are offering it to tenants for the time being. Meanwhile, if you're a regular reader you've seen what's happened to Chicago rent rates over the past year and are wondering what to do to maximize your return on investment.
As you approach the end of your first lease term with your first tenants, here's a timeline you can use to handle the renewal offer, and if necessary, the re-renting of the property. It will give you plenty of time to make plans if your tenants decide to leave, while staying within the bounds of the Chicago Residential Landlord Tenant Ordinance.
This guide assumes that you are a private landlord, not living in the same building with your tenants, that your tenants have been on a lease for over 6 months, and you want to keep them on a lease rather than going month-to-month.
A downloadable PDF version of this guide can be found here.
Was this guide helpful for you? Do you have suggestions on how I can improve it? Let me know in the comments!
Preparing the Renewal
Date |
Action |
120 days before expiration (4 months) |
|
90 days before (3 months) |
|
55-75 days before (2-2.5 months) |
|
Note: If you do not obtain a signed renewal before the lease expires, the lease will default to a month-to-month verbal agreement. You and your tenants will be able to alter and/or end the lease with just one month’s notice. However, you will lose the protection of the written lease, its rules and regulations, which is not a recommended situation. You may also wind up in violation of your Condo Association's Bylaws. You will still be covered by the CRLTO, and the Illinois Condo Act if this is a condo.
If your tenants decide to stay...
Date |
Action |
First day of new term |
|
30 days after |
|
Under no circumstances should you ever agree to use your tenants’ security deposit as the last month’s rent! This is against the law!
If your tenants are leaving...
Date |
Action |
55-60 days before (2 months) |
|
60 days before (2 months) |
|
15 days before |
|
Moving Day |
|
30 days after |
|
45 days after |
|