What to Know About Listing Your House for Rent in Chicago, IL

Whether you’re a novice landlord or a seasoned real estate professional, creating a compelling property listing is crucial. Your listing acts as the initial introduction renters have to your home, offering them a preview of what living in your space would be like.

In the bustling city of Chicago, where a little over half the population are renters, according to the Institute for Housing Studies at DePaul University, competition is fierce. From the trendy neighborhoods of Wicker Park and Lincoln Park to the historic charm of Hyde Park, each area has its unique appeal. Understanding how to highlight these local attributes can significantly impact your property's marketability.

Below, you will find practical tips and insights on crafting a standout rental home listing in Chicago, IL. You'll learn how to comply with local rental laws and effectively market your rental home to attract potential renters. By the end of this guide, you'll be equipped with the knowledge to create a listing that not only captures attention but also converts inquiries into successful leases.

Listing Your House for Rent in Chicago

Renting out your house in Chicago comes with specific legal responsibilities. As a landlord in Chicago, you must adhere to both state and local regulations concerning security deposits, rent control, and other pertinent laws. Before you proceed with listing your property for rent, it’s essential to stay informed about the regulations that will impact how you present your listing.

Does Chicago have rent control?

In Chicago, renters do not have the protection of rent control due to Illinois state law (50 ILCS 825/), which prohibits municipalities from enacting such measures.

However, the City of Chicago has implemented The Fair Notice Ordinance  (Mun. Code Ch. 5-12-130) to provide renters with greater stability. Approved by the Chicago City Council in July 2020, this ordinance introduces new rights and responsibilities for both tenants and landlords, aiming to create a more balanced rental market and ensure fair practices.

Key provisions of the Fair Notice Ordinance

• Extended notice requirements: The ordinance mandates a required notice period that landlords must provide when opting not to renew or terminate a lease or when raising a tenant's rent, as long as the tenant is not in the eviction process. The required notice period ranges depending on how long a tenant has lived on the property.

  • Under the ordinance, if your tenant has lived in your residential rental home for more than six months but less than three years and you decide to raise the rent or terminate their lease, you must give them 60 days' notice.

    But if your tenant has lived in your residential rental home for more than three years and you decide to raise the rent or terminate their lease, you must give them 120 days' notice.

    These required notice periods allow renters more time to find alternative housing or prepare for any rent adjustments.

• Eviction flexibility: Renters are now given more time to halt an eviction by paying the overdue rent and any court filing fees incurred by the landlord. This means that tenants are allowed to remain in your residential rental property and end the eviction case against them if they:

  • Pay all of their back rent owed
  • Pay any court filing fees their landlord has paid in their eviction case
  • Do not live in the same building as their landlord if the building has six units or fewer

Tenants are free to make the payments listed above until a judge issues a formal eviction order against their tenant. This provision offers tenants additional opportunities to resolve financial issues and avoid displacement.

What rental units are not covered by the Fair Notice Ordinance?

According to sections 5-12-010 and 5-12-020 of the Municipal Code of Chicago, the following rental units are not covered under the Fair Notice Ordinance:

• Units in owner-occupied buildings with six or fewer units.
• Units in hotels, motels, and rooming houses, unless rent is paid monthly and the unit is occupied for more than 32 continuous days. 
• School dormitory rooms, hospitals, shelters, employee’s quarters, and non-residential rental properties. 
• Owner-occupied co-ops and condominiums. 
• Employee housing

Even though these rental units are not covered under the ordinance, it’s still important to conduct thorough research before you list any rental unit in Chicago.

Utilizing Apartments.com for market insights

While not equivalent to rent control, the Fair Notice Ordinance is essential to learn about to avoid potential legal issues. According to one experienced landlord in Chicago, “Chicago has a lot of specific tenant laws that you must comply with. [You’re] going to spend a lot of time researching the local rental market to find a competitive rental rate.”

By listing your property on Apartments.com, you can access free rent comparison reports that provide critical insights and a detailed market analysis. These reports assist you in setting the right rental price by comparing it with similar properties. Additionally, they help you stay informed about Chicago’s rental market trends, such as average rent prices and the number of days properties remain on the market.

For further details on the Fair Notice Ordinance, you can visit the City of Chicago's official website or refer to the State of Illinois legislative documents for comprehensive housing law information.

Do you need a license to rent out your house in Chicago?

Although the city of Chicago does not require a license to rent out a house, Chicago is in Cook County, and Cook County requires a Residential Rental License for each rental unit in buildings with four units or more.

As a landlord of a rental home in Chicago, you do not have to obtain a license as long as your home is considered one rental unit. But if your rental home is considered more than four units (because you rent out individual rooms in the home to different tenants on different leases rather than renting the whole home to tenants on the same lease), then you’ll have to apply for a Residential Rental License for each rental unit.

For more information about this ordinance, you can read the full Residential Rental Dwelling Ordinance, contact a local real estate attorney, or email the Cook County Agency of Building and Zoning at rentaldwelling.bnz@cookcountyil.gov.

Is there a security deposit limit in Chicago?

While there is no security deposit limit for rentals in Chicago, the municipal code does provide comprehensive regulations on how security deposits must be handled to protect tenants. Below are some of the key points of Chicago’s municipal codes 5-12-080, 5-12-081, and 5-12-082.

Handling and account requirements:

1. Separate account: Chicago law mandates that as a landlord, you must hold security deposits in a federally insured, interest-bearing account located in Illinois. These deposits, including accrued interest, remain the tenant's property and must not be mixed with your personal assets or subjected to claims by your creditors as a landlord (5-12-080(a)(1)).

2. Combined payments: As a landlord in Chicago, you can accept the first month's rent and security deposit in one payment, but you must transfer the deposit to the previously mentioned separate account within 5 business days (5-12-080(a)(2)).

3. Disclosure and receipt: After you receive the security deposit from your tenant, you must provide them with a receipt detailing when the deposit was received, the amount, your full name (as well as the full name of the person who collected it, such as a property manager), date, and a description of your rental home. The receipt must be signed by you, and failure to provide it entitles your tenants to the immediate return of their deposit (§ 5-12-080(b)(1)).

   • If your tenant provides a security deposit in the form of an electronic payment, then you must issue a receipt or an electronic receipt containing the required information and a digital or electronic signature from you as a landlord (5-12-080(b)(2)).

   • After you have created a separate bank account and deposited the security deposit in that account, you must disclose the financial institution's name and address where the deposit is held in your lease agreement. If there is no lease agreement, this information must be provided to your tenant in writing within 14 days (5-12-080(a)(3)). 

4. Excess Interest: If you collect excess interest in the account holding your tenant’s security deposit, it is not considered commingling with your personal assets. "Excess interest” refers to any extra money in the account beyond the total amount of all the security deposits plus any interest owed on them. This means you can have extra money from interest in the account without violating the law about commingling funds ((5-12-080(a)(4)).

5. Interest Payment: As a landlord, if you’ve held a security deposit for more than six months, you must pay interest to your tenant from the rental term's start date, as determined annually by the city comptroller. This interest must be paid within 30 days after each 12-month period, either in cash or as a rent credit (5-12-080(c); 5-12-081).

   • But if the interest payment is deficient or if you do not pay it to your tenant, there will be penalties unless this is corrected in 14 days (5-12-080(f)(2)). To learn more about the interest rate for security deposits, Chicago’s city comptroller annually reviews and announces the rate, then publishes it in newspapers and distributes it through other various channels (§ 5-12-081; § 5-12-082).

6. Failure to comply: If you fail to comply with the laws about security deposits above, damages will be awarded to your tenant that is equal to two times the amount of the security deposit they paid plus interest (§ 5-12-080(f)(1)).

Returning security deposits:

1. Returning deposits: When you return a security deposit, the deposit and accrued interest must be returned within 45 days after your tenant vacates or within 7 days after your tenant's notice of termination. Deductions for unpaid rent and damages (beyond normal wear and tear) are permitted, but you must provide an itemized statement and receipts of the damages to your tenant within 30 days (§ 5-12-080(d)).

2. Transfer of deposits for property sale: If the property ownership of your rental home ever changes, then the new landlord must notify tenants of the transfer of their deposits within 14 days. As the previous landlord, you will remain liable for the deposit until it is transferred and tenants are notified by the new landlord (§ 5-12-080(e)).

While there is no specified limit on the amount of the security deposit, these detailed requirements ensure that tenants' security deposits are protected and properly managed. By following these regulations, you can avoid potential legal issues and build a good relationship with all of your tenants.

Is your property in line with Chicago housing codes?

It's essential to ensure your rental property complies with Chicago's housing codes for its readiness and safety. These codes establish the standards that all rental properties must meet to be considered fit for tenants.

As one seasoned landlord in Chicago advises, "Always ensure your buildings are up to code and repaired before listing and leasing." Therefore, it's crucial to confirm your rental property's adherence to these local regulations before listing it. Common violations of Chicago housing codes for newly constructed residential rental buildings or homes include:

• Fire code violations
• Leaking or falling ceilings
• Accessibility issues
• Rotting or loose steps
• Missing or broken handrails
• Falling exterior bricks/terra-cotta
• No water
• No heat
• Poor lighting near curbs and stairs
• Inconsistent stair heights
• Missing or broken windows/screens
• Uneven curbs with inadequate warnings
• Lack of non-slip mats on smooth surfaces

If you’re a property owner of an existing residential rental building or homes (which means you purchased it or it was given to you, you did not build it or hire a construction team to do so) in Chicago, then you must follow Chicago’s Minimum Requirement for Existing Buildings. Here are some critical requirements:

• Structure and outdoor maintenance: Maintain existing structures and outdoor areas in compliance with this code and the Chicago Fire Prevention Code.

• Systems and equipment: Provide and maintain all systems, equipment, and fixtures as required by this code.

• Cleanliness and safety: Ensure that shared and public areas of the premises remain clean, sanitary, and safe.

• Pest control: Exterminate insects, rodents, and similar pests as specified in Section 14X-3-308.

• Alarm maintenance information: Provide written information to your tenants about their responsibilities, if any, for testing and maintaining smoke alarms and carbon monoxide alarms.

By being proactive about these requirements, you can help yourself and your rental property prevent costly fines and ensure a safe environment for your tenants. To learn more about building codes in Chicago, visit the Department of Buildings’ website or contact them at 312-744-3449.

Does your Chicago listing abide by Fair Housing Laws?

Ensuring your rental home listing in Chicago complies with federal fair housing laws is essential for avoiding legal issues and fostering a fair rental market. These laws are designed to prevent discrimination and ensure equal opportunity housing for all applicants.

The Fair Housing Act, enacted in 1968 and amended over the years, prohibits discrimination in housing-related activities. This includes renting, buying, and financing homes based on race, color, national origin, religion, sex, familial status, or disability. As a landlord, it's crucial to adhere to these regulations to avoid legal ramifications and promote inclusivity. It is also vital to understand that there are specific phrases and terms you should never use. Here’s what you need to know:

• Inclusive language: Ensure your listing does not suggest or imply any preference or limitation based on protected characteristics. For example, avoid phrases like "perfect for singles" or "ideal for young professionals," which can imply discrimination against families or older individuals.

• Equal opportunity statement: Include a clear statement that your property is available to all qualified applicants, regardless of race, color, national origin, religion, sex, familial status, or disability.

• Highlight accessibility: If your property has features that cater to individuals with disabilities, explicitly mention these to demonstrate compliance with accessibility standards.

By adhering to these guidelines, you can create a fair, welcoming, and legally compliant environment for all of your potential tenants. To learn more about fair housing laws, visit the city of Chicago’s Blueprint for Fair Housing.

Marketing Your Rental Property in Chicago, IL

Successfully marketing your rental home in Chicago, IL, requires a comprehensive understanding of the local market dynamics and strategic planning. Chicago, known for its diverse neighborhoods like Lincoln Park, Wicker Park, and the Loop, offers unique opportunities for landlords to attract a wide array of renters. With a population exceeding 2.6 million and a steady influx of new residents due to the city’s bustling job market and renowned cultural institutions, positioning your property effectively is key. Below, you will find strategies and tips to help you market your rental home efficiently and attract high-quality renters in Chicago's competitive rental landscape.

Enhance your house’s curb appeal

First impressions are paramount, and the exterior of your rental property can greatly impact a potential renter’s decision. Improving your rental house's curb appeal is a proven method to draw more interest and attract higher-quality renters. Begin by ensuring that the exterior is well-maintained; this includes applying a fresh coat of paint if needed, cleaning windows, and keeping a tidy, landscaped yard.

Consider incorporating simple yet impactful elements like plants native to Illinois, such as Cardinal Flowers or Blazing Star plants. These not only add visual appeal but also attract butterflies and pollinators, enhancing your yard's attractiveness. Additionally, think about adding a new, welcoming doormat to greet potential renters at the entrance.

Furthermore, ensure all outdoor lighting is functional and inviting by illuminating the pathways leading to the entrance. These enhancements do not have to be expensive or time-consuming, but they can significantly increase the allure of your rental home in Chicago’s competitive rental market.

Take professional photos of your rental

Capturing high-quality photos of your rental property in Chicago is essential for attracting potential renters. In a city known for its architectural beauty and diverse neighborhoods, showcasing your property with professional images can make a significant difference. Here are some practical tips to help you photograph your rental effectively:

• Consider your photography equipment: You don't need a high-end camera to take excellent photos of your rental property; a modern smartphone can work just fine. Many smartphones today have advanced camera capabilities that can produce sharp and detailed images. Ensure you use good lighting and take multiple shots to find the best angles.

  • However, if you want to guarantee the highest quality photos, consider investing in a high-resolution camera or hiring a professional photographer. Clear, professional images can help prospective renters get a realistic view of the property, increasing the likelihood of scheduling a viewing.

• Stage the property: A well-staged rental home can significantly enhance its appeal. Consider hiring a professional stager familiar with Chicago’s décor and market trends to arrange furniture and decor in a way that highlights the space's potential. If staging services aren't within budget, simple touches like fresh flowers and neat, uncluttered rooms can also make a big impact.

• Use natural light: Chicago's varying weather can affect natural lighting. Aim to take photos on a clear day when sunlight is abundant. Morning or late afternoon light often provides the best illumination, casting a warm and inviting glow.

• Highlight unique features: Identify and emphasize unique aspects of your property. Whether it's a view of the Chicago skyline, proximity to Lake Michigan, or distinctive architectural elements typical of Chicago homes, make sure these features are prominently displayed in your photos.

• Capture key areas: Focus on photographing key areas such as the kitchen, living room, bedrooms, and bathrooms. Additionally, include exterior shots that showcase any outdoor spaces, whether it's a small patio or a shared courtyard. Highlighting the neighborhood's amenities, such as nearby parks or public transportation hubs, can also add value to your listing.

Write a compelling property description

Creating an engaging property description is crucial for attracting potential renters to your rental home in Chicago. According to another experienced landlord, “[You should] optimize [your] listing for neighborhood, amenities, and transit accessibility for tenants.” To start your listing description, begin with an attention-grabbing opening, such as "Step into urban elegance with this newly renovated two-bedroom apartment in the heart of Lincoln Park." This immediately sets the tone and captures interest.

Next, highlight key features and amenities that make your property stand out, like modern stainless-steel appliances, granite countertops, and hardwood floors. Additionally, emphasize unique selling points such as large windows providing ample natural light or spacious closets for added storage.

Furthermore, detail the location's benefits, including proximity to public transportation ("Just a short walk to the CTA Blue Line"), nearby parks ("Minutes from Humboldt Park"), and local dining and shopping options ("Close to trendy boutiques and top-rated restaurants in Wicker Park").

Moreover, use persuasive language to create urgency. Words like "luxurious," "spacious," "newly renovated," and "move-in ready" help potential renters envision themselves living in the space. For practical purposes, provide clear and concise information, including square footage, number of bedrooms and bathrooms, pet policies, and lease terms.

When you list with Apartments.com, your listing becomes more attractive by including neighborhood overviews, nearby schools, transportation information, and points of interest, offering potential renters a comprehensive view of their next potential rental home.

Include contact information

It's crucial to provide clear and accessible contact information for potential renters. This should include your phone number, email address, and any other relevant contact details. If you're based in Chicago, consider including local information that might be helpful to renters who live in different parts of the country or even internationally, such as the best times to call, considering the differences in time zones.

With Apartments.com, you, as a landlord, have the added convenience of allowing renters to apply directly through our online portal. This streamlines the application process and allows you to receive inquiries online. In essence, clear contact information and the use of online portals on Apartments.com are key to a smooth and efficient rental process for your Chicago-based rental home.

Engage with prospective renters

Once your rental is listed, active engagement with potential renters becomes a key priority. This involves responding promptly to all forms of communication, including messages, texts, emails, and notifications. Demonstrating such professionalism and respect for the renter's time can significantly sway their decision in your favor.

Another vital aspect is the scheduling and showing of the property. On Apartments.com, this process is simplified as renters can easily reach out using the provided contact information to schedule a showing. The ease of reaching you can expedite the process of filling your rental home's vacancies.

Being punctual for all appointments is a must. It not only showcases your commitment but also leaves a positive impression on your property management style. Remember, your handling of the rental process can be a significant deciding factor for many renters.

List Your Chicago Home for Free on Apartments.com

In Chicago's competitive rental market, it's vital to ensure your listing stands out and appeals to potential renters. This is where Apartments.com steps in. By offering free listings on our platform, we connect you to a broad network of prospective renters actively seeking their next home. Our platform guarantees exceptional visibility, ensuring your property is seen by the largest possible audience.

Furthermore, Apartments.com equips you with tools and features specifically designed to simplify the rental process. These include tenant screening upon application receipt, a lease wizard for creating fully customizable, state-specific, and legally binding lease agreements, and an online maintenance platform for renters to submit requests, which you can conveniently update as repairs progress. With Apartments.com Rental Tools, managing your Chicago property becomes a breeze. Experience the seamless efficiency of our rental process by listing with us. Regardless of where you stand in your landlord journey, Apartments.com is committed to assisting you at every turn.

*The information presented in this article is not a substitute for legal advice. Always consult an attorney for questions regarding your specific situation.