Friday, January 25, 2008

Exclusions from CRLTO

The City of Chicago Residential Landlord Tenant Ordinance strictly governs the conduct of most landlords within the City of Chicago. Nearly all rental property within the City limits is regulated by the CRLTO. Some rental units, however, are not covered by the strictures of the Ordinance.

In fact, Section 5-12-010 provides in part that the CRLTO "...applies to, regulates and determines rights. obligations and remedies under every rental agreement entered into or to be performed after the effective date of is chapter for a dwelling unit located within the City of Chicago, regardless of where the unit is made, subject only to the limitations contained in Section 5-12-020".

Section 5-12-020 of the Chicago Residential Landlord Tenant Ordinance sets forth the various exclusions from coverage of the ordinance. The most common exclusion from coverage arises under 5-12-020(a) of the CRLTO in situations where a building both (1) contains six or fewer units and (2) the landlord resides in the building. Even when the ordinance does not apply in the case of owner occupied buildings of six units or less, the provisions of Section 5-12-160 continue to apply.

Unfortunately for many condominium owners throughout the City of Chicago, the test for exclusion under 5-12-020(a) is a two part test. As a result, if a condominium owner owns a single unit in a four unit condominium building but does not also reside in the building, that condominium is governed by the CRLTO. Similarly, a single family home in the City of Chicago that is leased out is also governed by the CRLTO. Many landlords are surprised to find that their tenancies are governed by the ordinance. Usually, when they find out, it is too late.

The remainder of the exclusions in 5-12-020(b)-(f) provide for exemptions for various hotels, hospitals, purchasers of real estate who allow a seller to retain temporary possession, employee housing, and co-op property occupied by the co-op shareholder under the proprietary lease. The exclusions are quite limited and specific, with many being defined elsewhere in the City of Chicago code.

7 comments:

Anonymous said...

Hi,

I have a 2-flat in the city of Chicago and I live on the 2nd floor, and my tenants live on the first floor. I created a 1 year lease following the CRLTO, and the tenants signed it November 07. I just received a letter from the tenant giving me 30 days notice that they plan to leave the apartment, due to undue pressure.... The only thing that he can use against me as undue pressure is the fact that the April rent, and all other rents, are due no later then the 5th day of the month. After not receiveing it by the 5th, I left them a voice message asking about the rent. On April 8th, I received a letter from them stating that they would pay the rent on the 18th, (this is not the first time they've been very late with the rent). On the April 9th, I wrote them a letter giving them 5-days notice that the rent would be due by the 14th. I received the rent on the 14th, but 2 days later we received their 30 days notice.

My question:
1. Because they are in violation of their lease by 7 months, what repercussions can I take?

2. Do they have to give me all the monies owed for the 7 months? or Can I request that they pay up to 3 months rent (the amount of time I believe I would need to fix the apartment and rent it out)?

3. Also, Do I have to give them the security deposit once they move out or until I find a new tenant?

Thanks,

Anonymous said...

I fall under the exclusion as the owner of an owner-occupied 2-flat within the city.

However, I cannot find a lease that will provide me with the protections that I have.

Any suggestions?

Thanks. rogers park1

Richard Magnone said...

There are many lease forms available commercially to landlords. Currently, my favorites are the Sanford Kahn leases sold by American Legal Forms. No lease form is perfect and we modify even the Kahn leases (both Chicago and non-Chicago) based upon our client's individual needs.

Anonymous said...

So, if a tenant resides in a unit that is excluded from the CRLTO (4 units and LL resides there), are there any laws that will allow recovery of the security deposit?

Richard Magnone said...

If a property is exempt from the CRLTO and the Illinois statute, then the lease document (if there is one), and the common law of landlord/tenant and contracts will apply.

What does this mean? Well, what it really means is that you lose the benefit of the strict time limits, procedures, and penalties that exist under the Illinois statute and the CRLTO.

It does not mean that a tenant has no remedy, just that the remedy is limited (ie. the statute and CRLTO give extra rights to tenants).

Anonymous said...

hi, thanks for all your helpful information on the blog. i own a condo, live in it, and rented a room to a tenant using the chicago apartment lease. my tenant's lease expires in 3 days, he has only paid half of the rent this month and he paid it 22 days late (he claims financial difficulties), he has not paid any utility bills, and he has not made any move to pack his belongings. it sounds like he is not protected under CRLTO so can i have him forcibly removed by changing my locks if he is still in my condo after the lease ends? or do i still need to go to court to evict him? i have given him verbal and a written notice that his lease will not be renewed and his stay at my place is terminated as of october 1st.

Richard Magnone said...

Merely being excused from the requirements of the CRLTO does NOT excuse a landlord from the other requirements of Illinois law that relate to landlord tenant relationships, including the Forcible Entry and Detainer statute (eviction act). A CRLTO-exempt landlord cannot just lock out a tenant!