an insider s guide to renting an apartment in chicago chicago apartments

Transcription

1 tenant guide an insider s guide to renting an apartment in chicago chicago apartments

2 inside 1...the building exterior 2...the apartment 3...building amenities 4...neighborhood amenities 5...requesting concessions 6...affordability, credit checking and co-signing 7...utilities 8...pets and smoking 9...signing the lease 10...security deposits 11...rights to sublease 12...landlord obligations 13...resolving problems 14...cars and parking stickers 15...renter s insurance appendix...tenant checklist tenant guide 1

3 tenant guide 1...the building exterior Your inspec tion of a potential new apar tment should star t with a close look at the building ex terior. Is there discoloration in the facade? I f so, that may be evidence of water damage. Do the windows appear to be relatively new? Has the owner invested in painting and landscaping? Do the porches appear to be sturdy? Reliable landlords are attentive to details and take pride in their proper t y, and this pride is of ten reflec ted on the outside as well as the inside. Before you walk in, take note of the building security. Is there a front gate? A doorman? Are there security cameras? Is there sufficient ex terior lighting? When you come home, par ticularly at night, you want to be as confident as possible in your physical safety. I f the building does not have a doorman, you need to ask how visitors are admitted to the building. I f guests can be buzzed in by tenants, you need to find out how the intercom system works (in fac t, you should do something to satisfy yourself that it works). I f there s an unmanned gate out front, you need to find out who has keys and how frequently the lock (or code) is changed. I t s also a good idea to k now who owns the apar tment you are interested in renting. At a high-rise condominium, the landlord is likely to be the owner of a single unit and potentially an investor who doesn t live in the area. I n these instances, you may not necessarily obtain the same level of responsiveness if something breaks as you would if you lived in an apar tment building which has its own engineering staff at your disposal. 2...the apartment There should be no exception to this rule. When you get there, carefully inspec t the unit. I n the k itchen, turn on all the appliances. Check the water faucet for temperature and pressure. Open the refrigerator and freezer. Open the cupboards above the counters and the cabinets beneath the sink and carefully inspec t for evidence of water damage, rodents, or vermin. Check the ceilings for evidence of water damage, and check under the refrigerator or behind any radiators. I n the bathroom, turn on the sink and the shower and check the water temperature and pressure. Check the tub and the sink for evidence of mold, moisture, or drainage problems and check for leaks in any cabinetr y. Flush the toilet. I nquire about the location and capacities of any water heater and furnace ser ving the apar tment. I f both are within the unit, ask to see them. I nspec t the furnace carefully and look for rusting or crack ing that might produce a carbon monoxide leak. Check the apar tment for smoke and carbon monoxide detec tors and check for fire ex tinguishers in the common areas. Satisfy yourself that there s a safe and quick way to leave the building in the event of a fire. 2

4 Finally, it s always a good idea to speak with other tenants in the building. This may require you to wait around outside and flag people down as they re coming or going, but it s cer tainly wor th the effor t. I nquire about such things as cleanliness, landlord responsiveness to tenant concerns (including requests for repairs), and noise. Turn on ever y light and, if possible, bring a small elec tronic device (like a cell phone charger) to test the outlets. ( You ll be surprised how many are not live.) Look for lighting fix tures in the ceiling. Count the number and check the location of all three - pronged elec trical outlets and telephone and/or cable jacks. I f you re a real pro, ask whether you have 24-hour access to circuit breakers. Satisfy yourself that you have sufficient closet space for your bedroom, your front hall, and your bathroom supplies. I f there are blinds, cur tains, or drapes, check them to ensure they work. Open all windows and doors and check for func tional locks, including a dead bolt on the front door. Ask whether the lock on the entr y door was changed af ter the last tenant moved out or whether it will be changed when the existing tenant moves out. Ask how recently the apar tment was ex terminated and how frequently the building is ex terminated. I nspec t the trash room and open the trash chute. I f there s something on the floor, move it gently with your foot to see if you scare any insec ts out of their hiding places. 3...building amenities I f you ride a bike, ask whether there s a bike room in the building. I t s hard to feel coz y with a bike in your living room, and nothing k ills a barbeque like a bike on your balcony. tenant guide Check to see where mail gets delivered to the building. I f there s no doorman, find out what happens to pack ages that are too big to fit in the mailbox. During holiday season, parcels lef t in common areas have a way of becoming gif ts for unintended recipients. I f you intend to park at the building, ask to see the park ing space. M ake sure it s easily accessible and inquire as to whether anyone ever has problems with unauthorized vehicles in their space. Lots of buildings with accessor y park ing have park ing issues. I f you have suitcases, boxes, or other closet-hogging items, you ll probably need storage space. Be sure to inquire whether there s a storage room in the building and ask to see it. I f the building has a laundr y room, ask to see it. Find out how much it costs to do a load of laundr y and whether there s a change machine on the premises. Check out the size of the equipment. I f there are no laundr y facilities in the building, find out how close you are to a laundromat. I f the building has health and exercise facilities, a pool, or a business center, ask to see them. Not all gyms are created equal. I f the equipment is nice enough, you may not need to join a health club. 3

5 tenant guide 4...neighborhood amenities I f you re moving to a new neighborhood, check your proximity to all necessities and amenities. Find the nearest el station and investigate the local bus routes. Make sure you re not too far from a supermarket and a pharmac y. I f you re an exercise nut, find a nearby health club. I f noise is likely to pose a problem for you, take a walk around the neighborhood -- at night if possible -- before signing a lease. Pay par ticular attention to the presence of late -night bars, el tracks, hospitals, and police and fire stations. 5...requesting concessions There s no law against negotiating. Before you make a big commitment for a year-long living space, tr y to swing the best possible deal. Don t be afraid to ask. Remember: Nothing ventured, nothing gained. The best way to negotiate is to educate yourself first. Spend a day or two look ing at all the apar tments that potentially suit your fanc y and ask the landlords to provide you with their best offers, including any rent concessions. (Rent concessions are frequently given, but not publicly adver tised). At the end of what may be a long day, order your preferences, return to your first choice, and make a counter- offer. Be patient, and be ready to leave (or ac t as though you re ready to leave) if they can t swing a deal with you. Among the concessions to request are free rent and/or free park ing (for one or more months), a reduc tion in the security deposit (if you have excellent credit), a waiver of move -in or move - out fees, and the right to renew the lease at the end of the term without any increase in rent. Par ticularly at new construc tion high-rises, landlords need to fill vacancies quick ly, so be aggressive and shrewd without being unfriendly or uncooperative. 6...affordability, credit checking and co-signing M ost landlords obser ve the general rule that a tenant s monthly gross rent (which includes utilities) should not exceed 30% of his monthly gross income. M ost landlords also require prospec tive tenants to submit to a credit check (typically at a cost of about $35.00). This is of ten described as an application fee. You may also be the subjec t of an inquir y to past landlords, and someone may search a database for evidence of past evic tion proceedings against you. I f you re concerned about your credit histor y, you may want to check your credit score first. ( You may be able to reduce the application fee by bringing your own credit repor t. A free copy is available once -annually at w w w.annualcreditrepor t.com.) Do not be surprised if you re also asked to produce an employer reference letter that verifies your monthly income. I f you have a poor credit histor y (or no credit histor y) or insufficient monthly income, the most common solution is to have someone who meets the requisite financial criteria co -sign the lease. By signing on the dotted line, a third-par t y binds himself to the legal obligations imposed on the tenant and ser ves as additional recourse for the landlord. In addition, a tenant may offer to increase the amount of the security deposit and/or 4

6 pay several months rent in advance. (If the landlord agrees, then the tenant should attempt to regain some ground by negotiating a discount for early payment.) 7...utilities Utilities include gas, elec tricity, internet, cable television, telephone, and water. Unless the lease provides other wise, the tenant will be responsible for paying utilities, so always ask which utilities, if any, are included in the base rent. I n vintage buildings with boilers and radiators, the cost of heat is likely included. I n high-rise apar tment buildings, landlords typically charge a flat fee for heating, air- conditioning, and natural gas based on the size of the unit. Vir tually all landlords include the cost of water in the rent. I n condominium buildings, the cost of internet and basic cable T V may be included in the owner s monthly assessments, which are typically not added to the monthly rent. The proper course of ac tion is to ask the landlord to specify exac tly which utilities are not included in the base rent and to estimate the monthly expenses associated with those utilities. I f you re really diligent, you can even contac t the public utilities direc tly. Simply provide the address of the apar tment, and the utility will approximate your monthly charges. Once you sign a lease, be sure to contac t all the utilities and arrange for ser vice at least a week in advance of your move -in date. You can find the contac t information at domu.com/resources. 8...pets and smoking I f you have a pet or have an interest in keeping a pet, you should bring this to the landlord s attention. S ome buildings prohibit pets entirely. S ome buildings allow pets only if they do not exceed a cer tain weight, but require an additional security deposit, typically in the amount of another month s rent. tenant guide I f you re a smoker, you need to inquire whether smok ing is prohibited in the building. Landlords are increasingly prohibiting smok ing due to the much-publicized dangers posed by second-hand smoke. 9...signing the lease I f you intend to live with others, ensure that all your roommates sign the lease. I f they don t, you ll be the one holding the bag when they sk ip town. Before you sign, read the lease carefully. Don t just sign the lease two seconds af ter it s handed to you. Take it home for at least a night. Learn your rights and obligations. The lease may look like something from the tenth- centur y, but a standard form lease is t ypically comprehensible to laymen. I f the lease contains a provision that contradic ts your understanding with the landlord, ask to have that provision stricken. Do not rely on any oral promise that was made to you. M ake cer tain that all promises are expressed in writing in the lease and accept no excuse for their omission. 5

7 tenant guide I f, during your initial tour of the apar tment, there were items that needed to be fixed or cleaned, create an itemized punch-list and obtain the landlord s written commitment to fix the problems within a cer tain period of time. During your review, check the star t and end dates. Determine when and where the rent is due and what the available payment options are. Check the late fee that may be assessed if rent is paid untimely. Read the disclosure forms, par ticularly the summar y of the Chicago Residential Landlord Tenant Ordinance. Ask for copies of any rules or regulations that specifically apply to your tenanc y. ( This is par ticularly impor tant if you are renting an apar tment from the owner of a condominium, as condominium associations typically have lengthy and unexpec ted rules.) S ome associations impose exorbitant move -in (and move - out) fees in an effor t to discourage owners from renting out their units. Be cer tain to inquire about any such fees before you sign on the dotted line. Finally, if you have any questions, find a law yer friend and tr y to trade a dinner or bottle of wine (if you re old enough) for his wisdom and exper tise security deposits A security deposit is money you will probably be required to pay up -front to protec t the landlord against damage to the apar tment or unpaid rent. The typical security deposit is one -month s rent, although some landlords may request more, and there is no law that limits the amount of security deposit that a landlord may require or hold. S ome landlords even require the first month s rent, the last month s rent, and the security deposit to be paid simultaneously at the inception of the lease. This is less common, and tenants with good credit should think long and hard before committing to this. The Chicago Residential Landlord and Tenant Ordinance (or CRLTO) requires a landlord to hold all security deposit funds in a federally-insured, interest-bearing, segregated account, to provide the tenant with a receipt, and to disclose the identity of the financial institution at which the funds are held. The CRLTO also requires the landlord to pay annual interest on the security deposit funds (at a rate determined by the City of Chicago), provided the funds are held longer than six months. Within 30 days of the conclusion of your tenanc y, the landlord is required to supply you with a statement of the cost of repairing any damage you caused at the apar tment (ordinar y wear and tear excepted) and to refund the balance of the security deposit (or the entire deposit) within 45 days. ely and, I f the landlord commingles the security deposit, fails to pay annual interest, or fails to refund the balance of the deposit within 45 days af ter the termination of the lease, the tenant may recover an amount equal to double the security deposit, plus interest and reasonable attorneys fees. This punitive and draconian ordinance is legendar y in Chicago, and more than a few landlords have been taken to the cleaners for failing to comply. A copy of the CRLTO can be found at w w.chicityclerk.com/ tenantsvrslandlords. I n fac t, because the CRLTO imposes such harsh penalties, and because lawsuits based on technical violations are so common, landlords have begun moving away from 6

8 security deposits. I t is now increasingly common for landlords to demand a nonrefundable move in fee. ( This is separate from the move -in fee that high-rises sometimes impose on new tenants to compensate for loading dock and elevator usage or for repairs to anticipated nicks and dents.) A move -in fee assessed as an alternative to a security deposit can be steep, sometimes as much a half a month s rent. I t eliminates the need to tie up a substantial amount of cash for a full year, but it s a hef t y price to pay, and you don t get the money back even if you vacate the apar tment in pristine condition. In fac t, you ll still be legally liable for any damage. To ensure the maximum possible refund of your security deposit, carefully inspec t the apar tment for any damage before or immediately af ter you move in. Bring the damage to the landlord s attention immediately and, if possible, take photographs to protec t the record rights to sublease Lease terms typically run for periods of one year. This of ten leaves out- of-town students no choice but to continue paying rent for several months when they re not around. A lease must grant the tenant the right to sublease the apar tment with the consent of the landlord (whose consent may not be unreasonably withheld), and the landlord may not charge additional fees for providing his consent. I n cer tain instances, the par ties may be able to negotiate an agreement that will allow for early termination of the lease in return for an additional payment by the tenant. I f you negotiate a deal like this, be cer tain to get all the details in a signed writing. tenant guide For additional answers, or for information on how to obtain a renter s insurance polic y, consult the Insurance Information Institute at w w w.iii.org landlord obligations The Chicago Residential Landlord Tenant Ordinance obligates most apar tment owners to maintain the premises in compliance with all relevant provisions of the municipal building code. Among other things, this obligates landlords to protec t against damage to the struc tural integrity of the building; to keep the floors, walls, stair wells, porches, windows, elevators, and ceilings in good repair; to maintain bathtubs, showers, and sinks; to furnish hot and cold running water; to supply heat in the winter; to ex terminate as necessar y to prevent infestation by rodents and vermin; to supply locks and deadbolts; to maintain and repair all appliances and equipment furnished under the lease; to keep the premises water tight and free of leaks; and, perhaps most impor tantly, to maintain the dwelling unit and the common areas of the building in a fit and habitable condition resolving problems The Chicago Residential Landlord Tenant Ordinance sets for th, in surprisingly plain English, exac tly what you should do in the event your landlord is not maintaining the premises in a fit and habitable condition (assuming the lease is governed by the municipal code) or in the event that your landlord is failing to make even minor repairs. The first step, not surprisingly, is to deliver a written notice to the landlord specifying 7

9 tenant guide the exac t problems with the apar tment. ( This is merely a cursor y summar y of your rights and obligations. I f you should ever have a problem with the habitability of your dwelling unit, consult the CRLTO, which can be found online, or hire an attorney.) Communicating in writing with your landlord is an excellent prac tice. Even in cases where you are requesting simple repairs that don t really impac t the overall habitability of your apar tment, you should correspond in writing and retain a photocopy of your letter. I f the problem is urgent, send a letter by cer tified mail, return receipt requested, send a fax and retain the confirmation sheet, and send an e -mail too. The CRLTO sets for th in great detail all the remedies available to aggrieved tenants, including the withholding of rent in cer tain circumstances. Rent withholding can be a risk y proposition, so you should consider seek ing counsel (from a public legal ser vices organization if need be) before tak ing any such ac tion cars and parking stickers I f you own a car or motorc ycle and are not an I llinois resident at the time you move, you will need to register your license plates with the I llinois Secretar y of State within 30 days and obtain a new driver s license within 90 days. I f you already live in I llinois, you have 10 days to notify the Secretar y of State of your new address, although this can usually be accomplished online. Updating your contac t information ensures that you receive impor tant communications, including annual renewal forms. You also have obligations to the City of Chicago. Within 30 days of moving into the city, you are required to obtain a vehicle sticker for your front windshield. No matter when you buy it (and you may buy it online), the sticker will expire on June 30, at which point you ll have to fork over at least $75 for a new one. I f you move to a neighborhood where park ing is scarce, there s a good chance you ll need to obtain a residential park ing permit to avoid being ticketed during specified hours. You may apply for the permit online (the cost is $25), and the permit will be consolidated with your vehicle sticker. You may also purchase temporar y park ing passes for visitors, just in case you ever throw a par t y and want to ex tend the convenience of curbside park ing to your guests renter s insurance Renter s insurance is typically inexpensive and provides financial protec tion against thef t or casualty. A renter s polic y covers personal proper t y, including consumer elec tronics, bic ycles, jewelr y, and other valuable stuff. I t also protec ts against personal liability in case a visitor gets hur t inside your apar tment and slaps you with a lawsuit. (Hey, this stuff happens all the time.) A renter s polic y will cover both the cost of your legal defense and the amount of your ultimate liability (subjec t to standard polic y exclusions, deduc tibles, and coverage limits). I n the event of a casualty to the building itself, the polic y will (or should) cover your additional living expenses during the period that your apar tment is uninhabitable. Do not assume that the landlord s insurance polic y will protec t you, because it almost cer tainly won t. For additional answers, or for information on how to obtain a renter s insurance polic y, consult the I nsurance I nformation I nstitute at w w w.iii.org. 8

10 tenant checklist Building Exterior o Appearance of facade o Tuckpointing o Landscaping o Porches o Security & Admission Of Visitors (Doorman / Gates / Cameras) o Exterior Lighting The Apartment o Check ceilings for evidence of water damage o Check walls for evidence of cracking paint, plaster, or drywall o Turn on all lights o Turn on kitchen appliances o Check kitchen faucet water temperature and pressure o Open refrigerator and freezer o Check for and activate garbage disposal o Open kitchen cabinetry and cupboards check for evidence of rodents or leaks o Check bathroom faucets (sink and shower) water temperature and pressure o Check bathtub and shower for evidence of mold, moisture, or drainage problems o Inspect bathroom cabinetry for evidence of rodents or leaks o Flush toilets o Inquire about size and location of water heater o If the unit has its own furnace, check for evidence of rusting, chipping, or debris o Open and close, lock and unlock all doors, including entry door o Check for deadbolt on entry door o Open and close windows o Test blinds, shades, or window coverings o Inspect closet floors and other dark areas for evidence of rodents o Check number and location of electrical outlets and telephone jacks and test all outlets for power o Check for smoke and carbon monoxide detectors o Inspect trash room o Inspect laundry room Building Amenities o Doorman / mail handling o Laundry room o Fitness room o Bike room o Storage room o Accessory parking Neighborhood Amenities o El station / bus routes o Supermarket o Pharmacy o Health club Lease Terms o Monthly rent (apartment and parking) o Utilities included in / excluded from monthly rent o Estimated monthly utility costs o Start and end dates o Move-in / move-out fees o Security deposit o Concessions (free rent, reduced security deposit, right to renew on same terms) o Pets / smoking tenant guide 9