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Chicago’s New ADU Ordinance And What It Means For Landlords


Starting May 1st, 2021, landlords will be able to apply for approval to convert or newly construct additional dwelling units (ADU’s) on their existing rental properties Chicago. The Chicago City Council Committee on Housing and Real Estate has approved a new ordinance that legalizes ADU’s such as Coach Houses, attic and previously-illegal garden units for the first time since 1957. The aim for this pilot program is to increase the supply of more affordable rental housing.

The ordinance provides regulation to keep the newly legal ADUs affordable and prevents these units from being rented on vacation rental platforms like Airbnb without approval from the city. This has the potential to positively impact multifamily property values and increase rent revenue.

Presently, this 3-year pilot program is approved for 5 zones in the city of Chicago. There are restrictions placed on buildings located within pilot zones on the West, South, and Southeast side of Chicago. The Chicago Sun Times reports in more detail here: Chicago Sun-Times article. Please contact The Apartment Source if you would like more information!

In addition to our leasing service, The Apartment Source can help with budgeting, planning, + construction of the newly legal ADU units. Call The Apartment Source to discuss how you can take advantage of this pilot program ASAP (773) 404 9900.

Ready to list your apartment or invest in Chicago multifamily real estate? Call The Apartment Source (773) 404 9900

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