Eviction is a terrible idea. It’s terrible for you. It’s terrible for your tenants. It’s terrible for your property.
Always treat eviction as a last resort. If you do have to pursue an eviction through the courts, make sure you’re working with a Chicago property management that has exceptional legal resources (like us). Trying to evict on your own is risky and carries the potential for a lot of expensive mistakes.
The better idea is to prevent eviction.
Here’s how we avoid it at Paragon Property Management Group.
Tenant Screening: An Important Anti-Eviction Tool
One of the most reliable ways to prevent eviction is by placing a tenant who is well-qualified and unlikely to be evicted.
We are pretty thorough when it comes to screening prospective tenants. That’s because we want to avoid evictions, property damage, lease violations, lease breaks, and unpleasant conflicts and disputes with the residents in our professionally managed properties.
Before we start accepting applications, we establish clear rental criteria. This includes income requirements, credit score minimums, and acceptable background checks. We communicate these criteria to prospective tenants upfront, so there are no surprises.
If someone decides to apply, we provide a comprehensive rental application, which is key to collecting all necessary information about a prospective tenant. And then, we set about screening. We evaluate every application against our criteria and with the idea that we never want to be in danger of having to evict this tenant. We:
Verify income and employment history. This can be done by requesting recent pay stubs, tax returns, or bank statements as proof of income. We need to be sure tenants can afford to pay the rent.
We conduct a credit check, which provides valuable insight into a potential tenant's financial responsibility. We look for red flags such as late payments, high debt-to-income ratios, and money owed to former landlords.
Not every credit report will show past evictions, so we always check the national eviction database. It’s important to us that we don’t place tenants with a history of evictions.
Rental histories are confirmed. Reaching out to previous landlords can offer insight into our prospective tenant's rental behavior. We ask about their payment history, whether they took care of the property, and if there were any disputes or issues during their tenancy.
Tenant screening is your first step in preventing evictions in Chicago.
The Benefit of Positive Tenant Relationships
A good relationship with residents makes it easy for us not to evict.
Trust is a crucial element in the relationships we have with our tenants. When they trust that their property manager is fair, transparent, and reliable, they are more likely to take care of the property and fulfill their lease obligations. They’re more likely to pay rent on time. Building trust involves being consistent in actions, adhering to agreements, and respecting tenants' privacy and rights. We do all of that and more.
It helps that we’re good at solving problems. We listen and respond promptly to tenant issues, and that demonstrates care and respect. This encourages tenants to follow their rental agreement in good faith and remain open to working with us even if they run into difficulties paying rent. Whether it's fixing a leaky faucet or addressing noise complaints, proactive problem-solving can prevent minor inconveniences from turning into major disputes or grievances that jeopardize tenancy.
Establish a Rent Collection Policy and Enforce It
Nonpayment of rent is the most common reason that landlords will want to evict a tenant. We recommend a strong rent collection policy be included in your lease. This should establish when rent is due, how much rent is due, what your grace period is, and what the consequences of late rent might be. We also recommend allowing for online rental payments. That kind of ease and convenience cuts down on late and missing rental payments. We can provide that easily because of our property management software and our investment in technology. Tenants can pay online, schedule advance or recurring payments, and store their payment information.
According to the City of Chicago Residential Landlord and Tenant Ordinance, a five-day grace period is required. You cannot charge a late fee or pursue an eviction for five days after the due date. If the tenant fails to pay rent on time, the landlord may charge a late fee of $10.00 per month on rents under $500 plus 5% per month on that part of the rent that exceeds $500.00 Make sure your rent collection policy incorporates these legal requirements.
Partial Payment Options and Agreements
Let’s say your tenant cannot pay all of the rent that’s due, but they’re willing to reach out to you and talk about it.
That’s an excellent sign. The worst-case scenario usually involves us calling or emailing a tenant when rent is overdue, and having that communication ignored.
We are willing to work with tenants to get the rent paid. This is much better than eviction.
If your tenant can’t make the full rent payment, consider doing what we do, and accept partial payments. While it’s not ideal, for many landlords, it’s better than having no payment at all. It tells you that your tenants are still intending to pay the rest of the rent that’s due. If they were going to not pay at all and wait to be evicted, they would not offer the partial payment.
When we put together a payment plan or a payment arrangement for a tenant, we ask them to sign a written agreement outlining how much they’ll pay and when they’ll pay the outstanding balance. This way, there’s a clear understanding of the payment plan and expectations. We can hold them accountable to this agreement and if they fall short, we can take the steps necessary to evict.
Benefits of Preventing Evictions in Chicago
Preventing evictions offers numerous advantages for both rental property owners and tenants. For you, avoiding the eviction process saves time and money associated with legal proceedings, court fees, and potential damage costs incurred by vacant properties. Maintaining long-term tenants through effective prevention strategies reduces turnover rates and minimizes the expenses tied to advertising and preparing a property for new occupants.
For tenants, eviction prevention ensures housing stability, allowing individuals and families to remain in their homes without the stress of displacement. Staying in a familiar environment supports community ties and promotes a supportive network, which can be important in times of financial or personal difficulty.
Overall, proactive eviction prevention strengthens the landlord-tenant relationship, allowing a cooperative atmosphere marked by open communication and mutual respect. This collaboration not only benefits the immediate parties involved but can also contribute to broader community stability and cohesion.
How to Handle Eviction When it Cannot be Prevented
We are realists. While we use every resource and every bit of expertise to avoid an eviction, sometimes it is the only way. Tenants may become unresponsive. They may even become combative. When you have to evict, make sure you know the law.
The city of Chicago and the state of Illinois have specific regulations that protect tenants' rights, and as a landlord, it's crucial to comply with these to avoid legal complications. Chicago has a Just Cause Eviction Ordinance, which mandates that you have a just cause for evicting a tenant. Reasons may include:
Non-payment of rent
Violations of the lease agreement
Criminal activity
Property damage
Owners moving back into the unit
The first step involved in an eviction is the service of a notice. When we’re evicting for nonpayment of rent, we serve a Five Day Notice to Pay or Quit. If we are evicting for a lease violation, we will serve a notice that requires the tenant to come into compliance within 10 days. From there, a lawsuit is filed in the courts and a hearing is scheduled.
Eviction should only be approached when all other options have failed. In Chicago, we do everything we can to prevent eviction, both before the tenancy and during the tenancy. Even if we’ve served a notice and begun the eviction proceedings, we often remain ready to work with tenants who are willing to communicate with us and establish some kind of payment agreement.
If you’re even at the point that you’re thinking about eviction, you’re probably involved in a very difficult situation with your tenants. That can be frustrating and painful. Remember that you’re required to stay professional. You cannot change the locks. You cannot turn off the utilities. If you’re not sure where to turn or what to do, contact us at Paragon Property Management Group. We can work towards a solution.
Contact us for any questions about Chicago property management, including any questions you may have about ways to avoid potential evictions.
