When it comes to renting, professionally-managed apartments and privately-owned condos tend to differ drastically. In fact, some Chicago lessees have a definite preference based on experience or recommendation. However, recent college graduates or seasoned renters who’ve lived in the same place for an extended period are probably less familiar with the disparities.

To fully prepare for your next rental search, consider a few of the differences between renting Chicago apartments versus renting from private owners.

Move-in costs

From a general standpoint, the initial costs of moving into a professionally-managed apartment complex are less than those for a private condo or single-family home rental. In an apartment, applicants first pay an administration fee ($400 to $500) and an application fee ($40 to $50). Often, rental property managers will offer a credit for some or all initial fees if the applicant signs within 24 to 48 hours of a showing. That’s when making quick decisions can really pay off, but swiftness is only recommended if you’re sure the unit is the right fit.

The upfront costs to move into a private rental home tend to be costlier. Aside from the application fee, which is usually standard for both types of rentals, condo owners in Chicago can demand a security deposit. Security deposits typically equal one month’s rent, paid up front prior to move-in day. There’s also the move-in fee, move-out fee and, if applicable, refundable elevator deposits charged by the Homeowners Association (HOA) board. In total, these fees may cost you over $1,000 alone. Like apartment complexes, private landlords may also charge you a pet deposit and monthly pet rent.

If you were to look at West Loop apartments with no pets, you may only have to pay the application fee and possibly the admin fee, totaling approximately $550 upfront – not including the first month’s rent. On the other hand, to rent a West Loop condo at a rent of $2,000 per month, expect to pay around $3,000 upfront, also not including the first month’s rent.

Keep in mind, private owners are more likely to use security deposits because they have fewer ordinances than property management companies. Landlords who own and operate 25 or more units are required to pay interest on security deposits when the deposit is retained for six or more months. The security deposit must be placed into a federally-insured, interest-bearing account in an Illinois financial institution and commingling the security deposit with the landlord’s other assets is prohibited. Any earned interest must be paid to tenants each year. Landlords can credit the interest toward the following month’s rent or cut a check separately. Because the process can be complicated, apartment buildings tend to forgo the security deposit altogether. But, a homeowner who rents out just one condo for passive income is more likely to ask for a security deposit because said legal restrictions do not apply. Even so, many private owners forgo the security deposit to remain competitive and attract more tenants.

Size

Chicago apartments tend to be smaller than condos unless of course the building was originally built to sell and later converted to rent. Developers want to maximize rental building space since apartments aren’t designed to be forever homes. The general assumption is that renters will move out and purchase their own place once they outgrow the space. Apartment developers are also willing to cater to the efficient and compact millennial lifestyle since the median age of all renters is just 32-years-old. A two-bedroom condo in Chicago may range between 1,000- to 1,500-square feet, while a two-bedroom luxury apartment could be as tight as 775 square feet. Building age plays a major role as well, with older properties often being more spacious.

Finishes

In general, condos tend to feature higher quality materials compared to apartment finishes. Think genuine hardwood floors in condos and cheaper (albeit more durable) laminate to achieve a similar look in apartments. Condo kitchen appliances also tend to be higher-end because the need to replace often is lower, but it depends on the owner and their investment in the unit. You also might find custom touches such as window coverings or built-in cabinetry in a condo, which landlords of apartment buildings usually don’t include or allow.

Interior style

Although condos tend to offer higher-quality finishes, that’s not to say they are the most modern of the two. Because a large percentage of new construction development in Chicago is devoted to rentals, you’re more likely to find up-to-date interior designs within luxury apartment complexes. Think quartz countertops instead of granite, laminate floors throughout instead of wall-to-wall carpet, contemporary slab cabinetry instead of raised panels or detailing, and white or grey color schemes instead of beiges or tans. Ultimately, the favored rental type boils down to personal preference. Unlike most apartments, no two condos are alike and many tenants are drawn toward distinctiveness. Overall, architectural and interior character is more common with privately-owned condos compared to brand new, luxury apartment complexes. 

Amenities

If pools and gyms are important to you, consider leasing a unit in a new construction apartment complex. The amenities are usually both generous and lavish, to say the least. Shared spaces for party rooms, business centers, movie theatres, pet wash stations, dog runs and more are fairly common these days. Keep in mind, tenants typically pay for those extra benefits in the form of higher monthly rent payments. If you don’t plan to use the amenities ever, renting from a private owner could save you more money over your lease term.

 

 

Featured image: Z Chicago / Jones Chicago Apartments