If you’re currently renting, know that it’s nearly impossible to time the end of your lease with the purchase, closing date, and move-in date of your new home. In fact, trying to time a purchase with the end of a lease can not only lead you to miss some opportunities, but also it can cause stress if your lease end date is near and you haven’t found anything yet. Renters tend to put too much emphasis on the lease end date, and while a lease is a contract that should not be taken lightly, the reality is you have options. Experienced and qualified realtors will be able to help you navigate through this part of the home buying process. Consider these possible scenarios:
- You are about to close on your new home, but you still have a few months left on your lease. This is actually the preferred scenario! The Chicago Residential Landlord Tenant Ordinance dictates that your landlord has to reasonably approve a subletter. The landlord will sometimes even release you as the former tenant, and resign the new subletter for a year while avoiding having to pay a commission to a rental agency. Some firms, such as New Urban Property Services will help you qualify a subletter at no additional charge. In today’s environment, the rental market in Chicago is strong, and marketing to tenants is easy with Craigslist and sites like Domu.com.
- Your closing date is after your lease expires. Again, while this isn’t ideal it can be managed. The easiest solution is to go month-to-month, but landlords tend to avoid month-to-month lest they get stuck with a new vacancy during the winter. If your landlord insists upon you signing a full year, then you can always sign it up and sublet for a longer period of time.
With subleasing there’s always a risk that if the tenant doesn’t pay rent you are responsible. For this reason, it is a good idea to consult an attorney before entering into a sublet arrangement. Also, using a real estate professional to help you qualify the applicant will dramatically reduce this risk.
If you have additional questions on timing the end of your lease with the purchase of your new home please contact New Urban Property Services at 312.502.8213. New Urban is experienced with first time home-buyers and we will expertly help you navigate the process.