Illinois Real Estate Group Takes Action on Behalf of Investors

 Posted on April 27,2017 in DuPage County Real Estate Attorney

Investing in the state of Illinois' real estate market is already risky business; the housing market is still lagging from the recession, and now the commercial real estate market is lagging and, perhaps, on the cusp of a crash. Unfortunately, this is not stopping legislatures from trying to impose rent control on both commercial and residential properties. What might this mean for you, the investor, and what actions are being taken to stop the advancement?

Examining the Rent Control Bill

As of right now, rent control is prohibited in the state of Illinois. In other words, property owners and investors can charge what they see fit for their property; generally, this is determined by calculating costs like taxes, the mortgage, maintenance, and insurance. After all that is configured, the investor is only likely to make a small profit. HB 2430, a House Bill that was recently proposed, would lift the prohibition and allow for rent control. In short, it would cut into the little bit of profit that investors currently make from their properties.

Understanding the Impact

As an investor, your goal is to make money off your properties. Of course, you may not make quite as much as everyone thinks you do - but the point is that you do turn a profit. Doing so not only increases your cash flow, but it also provides you with the funds needed to expand your portfolio. On the one hand, this might seem "greedy," but as most investors know, it is all about being prepared for the next dry spell or market crash.

So what happens if HB 2430 passes? Well, for starters, you might be limited in the amount of rent you can charge. In the best-case scenario, this would decrease your income from a property. In the worst-case scenario, you start losing money on your investment properties. That is why the realtor group is fighting so hard to stop it.

Real Estate Group Campaigning for Investors

Real estate salespersons have jobs that are intrinsically tied to yours, so perhaps they are only looking out for their best interest in their fight against HB 2430. In the grand scheme of things, their motives do not matter. What does matter is the action that you and your fellow investors take against the bill. Not only can this help mitigate the potential risk of rent control, but it can also help you determine what actions can be taken now to mitigate the damage, should the bill pass.

Contact Our DuPage County Real Estate Lawyers

Stock, Carlson & Asso. LLC has decades of experience working within the real estate industry. Dedicated to your financial future, we can guide you in developing creative solutions and strategies for growing your portfolio. Schedule your consultation with our DuPage County real estate lawyers. Call 630-665-2500.

Source:

http://cookcountyrecord.com/stories/511098791-illinois-realtors-opposes-illinois-rent-control-bill-to-green-light-city-rent-controls

https://realtorparty.realtoractioncenter.com/site/Advocacy?cmd=display&page=UserAction&id=4622