Q. I am a landlord in Chicago whose apartments are governed by the City of Chicago Residential Landlord and Tenant Ordinance. Recently a tenant bounced a rent check, and I sent her a notice telling her she owed me rent, a late fee and an “NSF” (non-sufficient funds) fee due to the returned check.
First, she is disputing the late charge and the NSF fee, telling me I can’t charge a late fee since her rent check was submitted before the fifth of the month. Second, when she came to make good on her NSF check, she demanded that I give her back the NSF check. I told her I couldn’t give it back to her because I needed it for tax and record-keeping purposes. She insists I return it to her.
How do I address both of these issues?
A. You are entitled to charge her a late fee, as would be charged in any other case of late payment of rent. While she gave you a rent check before the fifth of the month, it was worthless. In fact, the rent was not paid until she gave you the replacement payment. As a result, you are entitled to your late fee.
Your tenant is entitled to a return of the dishonored check. There is probably little reason why you could not use a photocopy of the front and back of the NSF check for record-keeping and tax reasons. On the other hand, seeking a return of the dishonored check is a precautionary measure.
If you maintained the dishonored check, although you might not do so, nothing would prevent you from filing a suit against the tenant to recover the amount of the NSF check, claiming that the check was for another purpose. However, if you have surrendered the NSF check, that indicates that the obligation represented by that check has been satisfied.
Under these circumstances, you should return the now-satisfied check to your tenant.
Q. I rent a condominium unit in Chicago and want to know whether the ordinance prescribes the interest rate to be paid on security deposits.
A. The interest rate is the same for rental of all dwelling units subject to the ordinance.
If the condo building where you rent your unit contains more than six dwelling units, then the unit is subject to the ordinance, including the requirement for payment of interest on the deposit. The interest rate for 2002 is 0.83 percent.
Q. Can the landlord be held responsible for damage caused by a squirrel who got into our unit while we were gone for a few days? Our insurance doesn’t cover that damage and the squirrel came in through a vent that had been covered by plywood, and it fell through a damper that broke and allowed him into the apartment. While the landlord repaired the damper and roof, the damage to our property has not been covered.
A. Chances are the landlord would not be responsible for the damage to your apartment.
The damage is not necessarily due to a lack of repair by the landlord, or by any other matter that the landlord could have foreseen or prevented. This type of damage would be considered an act of nature, and beyond the control of the landlord.
You might want to check your insurance policy carefully, and call your insurance broker. This might be a casualty loss that would, in fact, be covered.
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Write to Robert A. Boron at Rental Q&A, Real Estate section, Chicago Tribune, 435 N. Michigan Ave., 4th floor, Chicago, IL 60611, or e-mail realestate@tribune.com. Sorry, but he cannot make personal replies.
