Howard Dakoff, attorney in LP's Homeowners Association group, was published in the January edition of Condo Lifestyles. The article,"Three Best Practices When an Association Leases a Unit to Mitigate Unpaid Assessments" provides a common scenario where a unit owner is delinquent in their payment of the monthly assessments and what the condominium board needs to know once it has a renter in the unit paying down the Unit Owner’s delinquent assessment balance. Condominium boards are advised that leases with any tenants must be extended every 13 months after expiration of the stay on the order of possession and that any lease should include an early termination clause (i.e. kick-out clause) to protect the Association from liability in the event there is a foreclosure or title to the property is transferred. The article also warns against condominium boards requiring a security deposit with a tenant because of the subjection to local landlord-tenant laws, which in Chicago require all security deposits be held in a federally insured, interest-bearing account located in the State of Illinois.
View the complete article here.