Real estate investment news you can use!

October 2025

MESSAGE FROM THE BOARD

Illinois Landlord Law Updates

Being a landlord in Illinois can be challenging, especially with laws constantly changing. This article covers just a few of the recent changes from the past few years, along with an additional law that may have slipped under the radar. Most apply statewide, but keep in mind that certain areas—such as Cook County, Chicago, and Evanston—have regulations that go beyond state requirements. This is not legal advice. Everyone should perform his or her own due diligence and seek specific legal advice from a licensed attorney when needed.

1) Flood Disclosure – SB2601
Before a lease is signed, a landlord must disclose if the property is in a FEMA 100-year flood zone and whether the property or parking areas have flooded—and if so, how many times. For lower-level units, the landlord must also disclose if those specific areas have flooded within the past 10 years and, if so, how many times. If the landlord has no knowledge of flooding, the disclosure must still attest to that fact.
These disclosures must be in writing and signed by both the landlord (or their agent) and the tenant. We recommend including this directly in the lease packet. If flooding is not properly disclosed and the tenant later discovers it, they may be able to break their lease and receive a refund of prepaid rent and fees. If flooding occurs without proper disclosure, tenants may also sue for damages to their personal property.

2) Tenant Credit Reporting Act – HB4926
A tenant may provide their own credit report to a landlord, but it must follow specific guidelines:
a) It must have been prepared within the past 30 days by one of the major credit reporting agencies at the tenant’s request and expense.
b) It must contain the tenant’s identifying information (name, address, contact details, income, and eviction history).
c) It must be readily available for the landlord to access at no additional charge.
If these conditions are met, landlords are not allowed to charge the tenant again for a credit report. That said, landlords may still choose to run their own credit report through their preferred agency, but this will be at their own expense.

3) 5-Day vs. 30-Day Pay or Quit Notices
Most landlords in Illinois are familiar with the 5-day pay-or-quit notice for non-payment of rent. However, there are situations where a 30-day notice is required. This is critical because if the wrong notice is issued and the case goes to court, the eviction could be dismissed, forcing you to restart the process.

A) Federally Subsidized Programs: If the tenant is on a federally subsidized housing program, such as Section 8 or Housing Choice Voucher, a 30-day notice is required.

B) Federally Backed Mortgages: If the property’s mortgage is federally backed (Fannie Mae or Freddie Mac), this remains a gray area in Illinois. The CARES Act required a 30-day notice, and some tenant attorneys in Illinois have successfully argued for case dismissals where only a 5-day notice was issued. To cover all bases, some attorneys recommend serving both a 5-day and a 30-day notice.

Here are some resources to check if your loan if Federally backed.

Fannie Mae: www.knowyouroptions.com/loanlookup
Freddie Mac: myhome.freddiemac.com/resources/loanlookup

All of this can feel overwhelming for new and even experienced landlords in Illinois. We always recommend working with a qualified eviction attorney. If it’s too much to manage on your own, consider hiring a professional property manager to stay on top of the latest laws and protect your investment.

Keith Jablonowski
Chicago Area Real Estate Investors Association - Technology

Upcoming Events

CAREIA

Board of Directors

CAREIA Monthly General Meeting

Monday, October 13, 2025 @ 7:00 p.m.
Networking starts at 6:45 p.m.
Hyatt of Lisle • 1400 Corporetum Drive, Lisle

Topic: How to Know If You Are Taking The Right Path In Your REI

Key Note Speaker: Laura Baker

https://www.careia.org/event-6322229

Short Term Rental Sub Group Meeting

Monday, October 20, 2025 @ 7 p.m.

Portillo's Hot Dogs, 531 N. Randall Rd., Batavia, IL 60510

Anyone who has an interest in investing in short or mid-term rentals are invited to attend our monthly STR sub group meeting. Each month we will have an open forum to discuss all things short term rentals.

https://www.careia.org/event-6378964

Real Estate Networking Night

Monday, October 27, 2025 @ 6:30 p.m.

Portillo's Hot Dogs, 235 E. North Avenue, Glendale Heights, IL 60139

A FREE Member & Non-member Event

https://www.careia.org/event-6322238

Cash Flow Game Night (Members Only Event)

Wednesday, November 5, 2025 @ 7:00 p.m.
McDonald's off Highland Avenue
1 Yorktown Shopping Center, Lombard

https://www.careia.org/event-6378969

CAREIA Dinner & Networking with Vendors (Special Location)

Monday, November 10, 2025 @ 6:30 p.m.
Pappa Passero's Family Restaurant, 6326 S Cass Ave, Westmont

CAREIA Members: $15; Guests/At Door: $30

Menu: Pizza, Chicken, Pasta, Italian Beef, Hot Dogs, Meatballs, Wings, Green Beans, Home-Made Chips

In addition to the dinner, our vendors will be on hand to showcase their services and offer some amazing raffle prizes. This is a great chance to learn about valuable resources to support your real estate endeavors while enjoying a fun evening of networking.

Please RSVP so we can ensure there's plenty of food and space for everyone.

We look forward to seeing you there and having a great evening together!

https://www.careia.org/event-6335823

Short Term Rental Sub Group Meeting

Monday, November 17, 2025 @ 7 p.m.

Portillo's Hot Dogs, 531 N. Randall Rd., Batavia, IL 60510

https://www.careia.org/event-6322235

Real Estate Networking Night

Monday, November 24, 2025 @ 6:30 p.m.

Portillo's Hot Dogs, 235 E. North Avenue, Glendale Heights, IL 60139

A FREE Member & Non-member Event

https://www.careia.org/event-6378940

President: Pete Gordon

Vice President: Steven Bell

Secretary: Rob Hayes

Treasurer: Vanessa Krynen

Librarian: Dwayne Denzinger

Programing: PK Kleinert

Vendor: Iva Norris

Newsletter: Belinda Moore

Publicity: Mary Ann Skweres

Membership: Danny Galvez

Tech Support: Keith Jablonowski

__________________

Our mission

To support and
promote local real estate investors
though networking, education, support, leadership on
legislative issues,
and promoting professionalism
and standards of excellence in the
real estate
investing industry.

__________________

WORDS OF WISDOM

““[Real estate] is like Jack and the Beanstalk’s goose that lays golden eggs. It’s something that pays you month after month, whether you are working or not.” – Kathy Fettke, Co-Founder and Co-CEO of RealWealth

Library Book of the Month

Investing in Real Estate with Lease Options and "Subject-To" Deals

Wendy Patton

Every new investor asks the same question: How do I get started if I don't have much money?

With lease options and subject-to deals, investors can control properties worth much more than what they could normally afford to purchase. The potential for profit is great and the costs of getting started are low. This book shows novice investors how author Wendy Patton and thousands of other Americans--including well-known real estate developers and business moguls--use lease options and subject-to deals to control valuable property without necessarily owning it. The cost of purchasing an option or subject-to deal is a fraction of what it costs to buy a home. That's why these kinds of deals are typically found in every serious investor's portfolio. Sharing the secrets and strategies investors use to profit from low- and no-money-down deals, Patton gives investors all the information they need to succeed.

In this excellent primer from Wendy Patton, she explains how these deals are different from conventional purchases and how the numbers work. Then she walks you through the process from finding prospects to closing the sale, and provides good information on the business and common players in the market.

Finally, a book that explains lease option and subject-to deals in depth and detail. This book is essential for anyone who wants to make money in real estate without using a lot of cash or taking on a lot of risk.

To check out materials:

Only members can borrow materials
Review inventory here: https://www.careia.org/LibaryList
Fill out CAREIA Library request form
Receive materials at the next General Meeting
Materials are due back in one month
Note. If materials are not returned, member is responsible for paying cost of materials for replacement.

National REIA Benefits

Members of CAREIA can register at National Real Estate Investors Association (National REIA) https://nationalreia.org. and learn about the negotiated group discounts from National vendors. Login CAREIA website https://www.careia.org and go to Account -> Members Only: National REIA for more details.