.jpg)
Rent in Chicago is rocketing. The median gross rent in Chicago was $1,139 in 2019. That's the highest it's been in more than a decade.
You may think this is a good thing for landlords. They get to earn more money.
But it isn't. The higher the rent is, the harder rent collection can be. You need to be prepared for a tenant to skip out on the rent.
What are the laws that affect collecting rent? How should you have a discussion with your tenant to resolve your conflict? What can you do if they won't make rent payments?
Answer these questions and you can master how to collect rent in no time. Here is your quick guide.
Review the Laws About Rent Collection
Chicago does not have a rent control law. You can raise the rent at the end of a rental period to whatever amount you want.
But you must provide advance notice at least 120 days in advance. You also cannot raise the rent during the rental period. If you are trying to collect more rent from a tenant who has already paid, you risk violating rental laws.
Make sure you review all landlord-tenant laws in Illinois before moving forward. You cannot lock a tenant out of their apartment, even if they have been late with the rent multiple times. You must talk to your tenant and explain the situation to them before acting.
Talk to Your Tenant
Don't overreact when rent payments don't come in. Your tenant may be confused about the payment schedule. You should talk to your tenant face-to-face and figure out what the problem is.
A tenant may not be able to pay rent now, but they may be able to pay in a week. They may also be able to make two rent payments in the next month. You can consider whether or not you want to accommodate your tenant.
Give Your Tenant a Legal Notice
If your tenant refuses to pay rent you are entitled to collect, you can move toward eviction. You must start the process by giving them a late rent notice.
Your notice should indicate how much rent they owe and what the deadline for the rent is. You can give them up to five days to pay the rent.
If they pay the late rent in that amount of time, you can end the eviction process. You cannot impose penalties on the amount they must pay.
If your tenant still declines to pay the rent, you can file for an eviction case with a local court. Talk to a lawyer and work with them on drafting documents that bolster your case.
Understand the Essentials of Rent Collection
Rent collection can get tricky. You cannot raise the rent before the rental period is out. Yet you can ask for rent after your tenant skips a payment date.
Sit down with your tenant and talk about what happened. If the tenant is late with the rent once, you can accept their apology.
But if they refuse to pay for no good reason, you can move forward. You should write them a legal notice and ask them for rent.
Get help whenever you have a difficult tenant. HomeRiver Group Chicago helps Chicago landlords. Contact us today.
