By Ryan Byers,
Rammelkamp Bradney, Attorneys-at-Law
It seems that the majority of landlords in the twenty-first century are larger corporate entities. Typically these companies own several properties within the same city, if not numerous properties spread across many states. However, there are still times when an individual decides that he or she would like to attempt to earn some extra money by renting out one property in his or her possession. Perhaps the individual has inherited real estate recently and feels that it could be used to make some extra money. Perhaps the individual intends to move out of state for an extended period of time but is not quite ready to give up his or her residence in Illinois. Perhaps there is extra space in the individual's home that is already set up to be used as an apartment or could be converted. Regardless of the circumstances, there are numerous situations in which individuals who do not have experience as landlords decide that they would like to rent property to another. However, before doing so, there are several legal concepts that these individuals should be aware of, which are also concepts that experienced landlords would be wise to keep in mind.
First of all, though the concept of doing business on a verbal agreement and a handshake may seem simple and appealing, it can be quite dangerous in the field of landlord-tenant relations. Terms of the agreement between the landlord and the tenant will not necessarily be clear if the agreement is verbal, and, should there ever be a dispute regarding the terms of the agreement which results in the parties appearing in court, a verbal agreement's terms can be difficult to prove. In the event that there is a classic "he said, she said" argument about what terms are contained in a rental agreement, it will most likely be one judge's opinion of which party is more credible that leads to the court's determination of the terms of the oral agreement. Additionally, when a tenant violates the clear terms of a written lease, evicting that tenant can be done more efficiently and with less notice than if a landlord wishes to remove of a tenant for some reason that cannot be considered a clear cut lease violation.
As a result, a landlord should always enter in to a written lease with a tenant, the terms of which clearly spell out the rent and other fees to be paid as well as any valid restrictions that the landlord wishes to place on the use of the tenant's property. It is also advisable to have an attorney review any lease before it is entered into. Though form leases do exist and though some potential landlords attempt to rely on other leases that have been used in the past by their friends or colleagues, there is no guarantee that a given form lease will best protect the interests of a specific landlord. Furthermore, certain state laws and regulations will invalidate some lease provisions which are considered to be too burdensome on tenants. A practicing attorney can assist in determining whether a lease that a landlord wishes to use is completely enforceable and definite enough to meet all of the landlord's goals.
Additionally, potential landlords should exercise caution when attempting to rent out buildings which have not specifically been constructed to act as apartments. Though renting out a room, leasing your former residence, or splitting a larger home in to multiple units may sound appealing, zoning restrictions and municipal ordinances in your area may prevent the property that you are attempting to rent from being lawfully rentable for the purposes that you intend. Furthermore, if you are converting a smaller portion of a large building in to an apartment or apartments, you will want to be aware of building codes that may require more renovation than you originally think is necessary or may make it physically impossible for your property to be broken down in to rental units. A lawyer in the area in which your property is located is the best resource for determining whether you are complying with all of these codes and regulations.
Finally, even if there is a valid lease in place and even if the property that you are seeking to rent is suitable to be rented, there is still the possibility that it may be necessary to evict a tenant. The eviction process in Illinois contains several specific steps which must be followed exactly. If these steps are not followed exactly, it may be necessary to start the eviction over again from the beginning of the process. Though some landlords attempt to evict tenants without the aid of a lawyer due the expense that they perceive as being involved, if the terms of the lease are drafted correctly, all lawyers' fees that you are charged as a result of the eviction can be recovered from the tenant through procedures such as wage deduction or garnishment of other assets.
Renting residential property in Illinois can be a successful full-time business venture or a side project which offers a fair amount of supplemental income. However, whether renting property is your primary means of earning a living or something that you have undertaken to earn a bit of extra cash, it should only be done with the advice of a professional who can inform you of the legal consequences of your actions as a landlord.
