Legal Question in Real Estate Law in Illinois
I'm away at college, I have a primary address in IL and temporary address in another state while enrolled in college. Can I allow my sister to sublet my home while I'm temporarily away? She will pay only the mortgage payment and there will be no money gained as income. Is that legal or do I need to do other things to meet legal requirements? The payments are very low and I will pay property taxes and insurance. What other factors do I need to consider with this situation? Thanks
1 Answer from Attorneys
If I understand your question correctly, you wish to rent out your primary residence to your sister, whereby she will be making the mortgages payments and you earn no additional income.
This is most likely a perfectly legal situation. However, if you have a homeowner's association, be sure to check the rules to verify you can rent out the property, as they often will have restrictions.
Also consider that the payments she makes on the mortgage will count as income to you, and will thus need to be reported to the IRS as taxable income.
Additionally, to be safe, despite it being your sister, you will want to draw up a lease to clearly outline your duties as landlord and her duties as tenant. Be sure to give her all disclosures necessary for renting out property in Illinois, and any your city/county may require.
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