The short answer to whether you can enact limits on renting condo units in Chicago is yes. Associations can restrict owners from leasing their units entirely or enact other restrictions to limit the amount of rentals within the association.
What to Know About Rental Restrictions in a Condo Association
Per the Illinois Condominium Property Act (ICPA), individual condo associations in Illinois are allowed to create their own rules and restrictions when it comes to renting individual owner units.
While some associations may choose to outright ban all leasing within the association, others may implement more lenient restrictions. For example, they may place limits on the number of units that can be leased at a given time or restrict the number of times an owner can rent their property.
If your association chooses to enact limits on renting, it’s generally recommended that the association amend the declaration to reflect the new rules rather than simply pass the rule by a board vote. Declaration amendments are more permanent, whereas board votes can change from board to board.
Owner Leasing Responsibilities
Condo associations that allow leasing should have a clear policy in place. The Condo Unit Owner’s Rights and Responsibilities Handbook notes that “the unit owner leasing the unit must deliver a copy of the signed lease to the board not later than the date of occupancy or 10 days after the lease is signed.” Moreover, the handbook also specifies that unit owners are liable for any damage caused to the association by their tenants.
As you choose your association’s rules and regulations when it comes to renting, be clear about your policy and make sure all owners understand it. If the association will be voting to amend current documents, it will require at least a majority vote to pass.
For help understanding Chicago condo association’s rights and restrictions, give us a call at First Community Management. We offer full-service management to assist your board and property owners.