After working for various management companies and opening my own, I have seen a lot in the world of tenant placement and legal disputes. Despite any of our best efforts and various tenant screening techniques methods, not every tenant placement will be perfect, and even your best tenant can make mistakes. As a rental property owner in Chicago, understanding the details of legal disputes in property management is important whether you manage your properties or hire a professional. This blog is designed to share my knowledge with you to help navigate these challenges, detailing the critical role you must play to protect your investments. Please note that I am providing my opinions (NOT LEGAL ADVICE) and you should inquire with your attorney rewarding your unique situation. Most property management companies like ourselves have someone trusted on staff to work through these as they come up.
What is the Legal Role of a Property Management Company or a Self-Managing Landlord?
Lease Agreement Enforcement:
- Details: You have to ensure that all aspects of the lease agreements are upheld by both parties. This includes overseeing that tenants fulfill their obligations and that landlords provide habitable living conditions as required by law.
- Real-Life Example: If a tenant fails to pay rent on time, property managers or self-managing landlords handle the situation by enforcing late fees as stipulated in the lease, and if necessary, initiating the legal process for eviction under Chicago’s Residential Landlord and Tenant Ordinance (RLTO). If the tenant still doesn’t pay, we would issue a Five-Day Notice, which informs the tenant that they have five days to pay the rent in full. If the rent is not paid in full (or possibly a payment plan worked out), we would file the Five-Day Notive to begin the eviction proceedings.
Handling Evictions Legally and Efficiently:
- Details: It is important to be trained to handle evictions in compliance with local laws, which in Chicago can be particularly complex.
- Real-Life Example: In case of non-payment of rent, you will have to file the appropriate legal notice, represent the landlord in court proceedings, and coordinate with law enforcement to ensure that evictions are carried out legally. If the tenant fails to pay the rent in full within the five days, the property manager or owner can begin filing for eviction. This involves submitting the necessary paperwork to the local court. In Chicago, eviction cases are heard in the Circuit Court of Cook County. Another thing to mention here is that a property management company should have experience in dealing with this and can often avoid the long drawn out process of eviction with an alternative solution or negotiation like “cash for keys.” For more information on how you should handle a tenant not paying rent check out our previous blog that covers this in detail called “How Do I Handle A Tenant that Stops Paying Rent.”
Mediating Disputes:
- Details: Often, property managers act as mediators between tenants and landlords to resolve conflicts without legal proceedings, saving both parties time and money. If you don’t use a management company you will be directly working with your tenants on these issues.
Real-Life Example: If a tenant complains about maintenance issues that are not being addressed, the property manager or owner works to resolve these issues amicably before they escalate into legal disputes.
What are specific examples of Legal Risks faced by Property Managers or Self-Managing Landlords?
Criminal Activity on the Property:
- Details: Property managers and landlords have a duty to address any criminal activities that occur on their properties promptly.
- Real-Life Example: Should there be incidents of drug use or other illegal activities, property managers must take immediate action, including notifying the authorities and taking steps to evict tenants involved in such activities, following the legal eviction process.
Hazards to the Environment:
- Details: Environmental hazards such as lead paint or asbestos are significant concerns in property management.
- Real-Life Example: If environmental hazards are discovered, property managers are required to notify tenants immediately and take swift action to remediate the hazard and comply with environmental safety regulations. They must provide tenants with any available records and reports on lead-based paint and/or lead-based paint hazards. This can include previous inspections and remediations. Tenants must sign a form acknowledging that they have received all necessary information before they are bound by a lease.
Injuries to Tenants:
- Details: Property managers or self managing property owners can be held liable if tenants are injured due to negligence, such as failing to repair a known hazard.
- Real-Life Example: If a tenant is injured due to a broken stairwell that was not fixed despite being reported, the landlord or property manager must handle the legal implications and potential compensation claims.
Improper Construction:
- Details: Addressing construction issues that affect tenants’ safety and health is a legal requirement.
Real-Life Example: If improper construction leads to problems like mold or structural risks, property managers need to act swiftly to coordinate repairs and avoid legal actions due to negligence.
Factors That Influence Legal Intervention:
- Tenant Behavior: Non-compliance with lease terms by tenants can lead to disputes that may require legal action.
- Property Condition: Failure to address maintenance issues can lead landlords into legal trouble, emphasizing the property manager’s role in regular inspections and timely repairs.
- Up-to-Date Legal Knowledge: Laws change, and staying informed is crucial. For instance, recent updates to the RLTO may affect how security deposits are handled, and being unaware can lead to severe penalties.
Knowing how to handle legal disputes is so important, particularly in a city like Chicago, where real estate laws are stringent and frequently updated. I can’t stress enough that whoever you go with, please make sure you do your due diligence and read their reviews. At Landmark Property Management, we equip our team with the latest legal knowledge and conflict-resolution skills to protect your investment and minimize your exposure to legal risks.
If you’re a landlord in Chicago looking to safeguard your property with expert management that includes legal support, contact Landmark Property Management today. Let us handle the complexities of property law, so you can enjoy the benefits of your investment without the hassle or reach out with any questions you might have about what you read. We are here to help and would love to share our industry secrets and knowledge with you!
