Move-in fee v. security deposit

[Joey Nakayama]

As a Chicago landlord, I've noticed many local apartment listings that ask for a non-refundable move-in fee instead of a security deposit. I suspect this is partially due to Chicago's strict laws regarding security deposits.

Fellow landlords, where do you fall on this issue (especially you Chicagoans)?

And for any renters out there who have weighed these options, what do you think?

[Steven Muresan]

Originally posted by @Steven Muresan:

Great thoughts here BP, @B

When I bought my 6 units building, it was fully rented, with 5 Yearly leases and 1 M2M lease. We returned all the deposits. Now I`m kinda risky cause they renting without a deposit. When I'll do the extension of the leases, which will be M2M is it that the right time to ask for the move in fee? Any ideas ?

@Joey Nakayama 

Thank you for the  good idea ! 

[Art Maydan]

I’m renting the bottom of my house hacked duplex (2B/1B) in McKinley Park for $1,450 and deciding what I should charge for the move-in fee as well as pet fees. I’m sort of just going based on how much I like the tenant and how much of a hassle the type of pet they have would be currently. I just rented out a condo in River West (3B/2B) for $3,300 and the move-in fee was $1,000 and $300 for a medium dog. Wanted to bump this thread to get some more recent input.

Also, question: I’m holding a $1,500 security deposit for the current tenant and I’m sending it back soon. Do I need to pay interest as an owner-occupant? I remember reading in the broker study material that I don’t.

[Sean Graham]

@Art Maydan Hi Art, I am curious about your duplex in McKinley Park. I am interested in house hacking in that neighborhood, but I do not know too much about it. It sounds like you are getting very good rent at $1,450 for a 2B/1B. Would you say that is high for the neighborhood? What areas (blocks/crossroads) would you recommend looking at within McKinley Park? Is there a lot of crime?

[Matthew Olszak]

@Art Maydan If you have an owner-occupied building under 7 units, you are exempt from the CRLTO, so no need to worry about the security deposit provisions.

[Art Maydan]

@Sean Graham Hey Sean, I'm on 38th by Damen & Pershing a couple blocks from the actual McKinley Park, which I go to a lot. I do have one of the nicer units in the area, so my rent is on the higher end. My upstairs unit will probably go for $1,600-$1,700 when we move. I love the neighborhood. you can look up the crime stats, but it's safer than a lot of more expensive North Side neighborhoods. I've never felt unsafe here or even witnessed any crime. It's a working class demographic, but I see more and more yuppies every day and ride past them on my way to work in the Loop every morning when I didn't ride past any 9 months ago. As someone who would rather be living in the mountains, a forest, or on a farm, I like it here; it's like a mini suburb. No nightlife across the street to draw drunk, loud people. Kids running around during the day, but it gets quiet enough to sleep with the windows open at night. Bought the place for $270K off the market from a rehabber. Lot of new construction - both commercial and residential - in the area