Becoming a landlord for the first time in a thriving city like Chicago can be an exhilarating experience, but incredibly overwhelming as well. Chicago’s highly competitive real estate market and diverse neighborhoods offer landlords strong rental demand, but rent collection is only part of the story when it comes to successful property management. Effective Chicago real estate management is your key to success, from understanding tenant laws, to maintaining your property, and marketing it strategically.

Let us look at some top property management tips for first-time landlords who are renting out property in Chicago.

One of the initial and most essential steps in Chicago real estate management is to become familiar with local rules. The laws governing housing in Chicago are complex compared to other major U.S. cities, and failing to comply can lead to legal issues and costly fines. Understand the basics of the Chicago Residential Landlord and Tenant Ordinance (RLTO), which governs landlord responsibilities such as providing essential services, following proper security deposit procedures, and including required lease provisions.

TIP: Always give a written lease and include all relevant disclosures.

Selecting the wrong tenant can lead to late payments, property damage, and costly evictions. An exhaustive vetting process is essential. Check for:

• Credit history

• Background checks

• Employment verification

• Rental history and references

Never skip this step. Choose tenants with a history of on-time payments, stable employment, and no prior evictions.

The quality of tenants your property attracts depends heavily on the rental price. Research comparable properties in your neighborhood and factor in your unit’s condition, amenities, and proximity to transit, groceries, and schools.

You can also talk to a Chicago real estate management company like Beal Properties and ask for assistance with a market rent analysis.

Nothing frustrates tenants more than delayed repairs. Being prompt in maintenance and looking after any issues immediately not only keeps tenants cheerful but also protects the property from long-term damage. Develop a maintenance request tracking and regular inspection submissions system.

Build relationships with local sub-contractors, plumbers and electricians for quick service tips.

Some first-time landlords attempt to manage everything because they feel it will save them money. In the end, professional Chicago real estate management can save you time as well as directly (money) and indirectly (stress). These services consist of rent collection, screening tenants, coordinating maintenance, lease renewals and legal compliance.

If you live outside of Chicago (non-local) or manage multiple units, professional management can be a game-changer.

While the rental market in Chicago is incredibly competitive, simply posting your unit online isn't going to cut it. Make sure to use good pictures, a clear and engaging description, and list it on multiple listing sites. Take virtual tours or promote them with social networking.

You can also turn to a property management company to handle professional management and marketing, which should help decrease the number of people caught renting the units.

Preserve all lease contracts, maintenance invoices, files, rent books, and logbooks. This not only helps to settle disagreements, but it is also essential for tax reports and legal protection.

Being a landlord in Chicago can be very lucrative, but it takes some preparation and a good strategy. Given your type of investment, you can shield yourself from this risk at many potential turns by learning what to look for on your own and employing a worthy Chicago real estate rental management company.

These tips work whether you want to rent out a single condo in Lincoln Park or hundreds of units in Hyde Park.