Illinois Appellate Court Rules RLTO's "Owner Occupied" Exclusion Covers Landlord's Coach House

The law defining the "owner occupied" exclusion found in section 5-12-020(a) of the Chicago Residential Landlord Tenant Ordinance has been expanded to cover coach houses with the First District Appellate Court's ruling in Berven v. Marquette National Bank and Trust, and Toy.

In Berven, the plaintiff signed a lease with Toy to rent one of two apartment spaces inside a coach house located on a parcel of land that included a main house. After it appeared that the landlord did not clean the apartment, Berven broke the lease based on Toy's failure to supply him with a copy of the ordinance as required by section 5-12-170 of the RLTO. Berven also requested that Toy return his security deposit which was not done.

At trial, Toy asked the court for a directed verdict that the RLTO's "owner occupied" exclusion was triggered because (1) Toy lived in the main house, (2) that the total number of units on the property was 6 or less (4 in the main house and 2 in the coach house) and (3) that the coach house should be included because it was an "appurtenant building" to the property. The trial court agreed with the Toy and noted that additional evidence in the form of the property's PIN number indicated that the Cook County Assessor treated both structures as one property. Berven argued that the exclusion shouldn't have applied because the coach house was physically separated from the main house in which Toy lived.

The Appellate Court agreed with the trial court and held that "it is without doubt that the coach house is appurtenant to Landlord's residence...this fact alone brings the coach house under the definition of a dwelling unit in section 5-12-030(a)." This section provides a definition of the term "dwelling unit." The court also indicated that because Toy used part of the coach house for personal storage and other uses "associated with occupancy" also "render the coach house part of Landlord's 'dwelling unit...'"

Tenants renting coach houses in the City of Chicago may be afforded little protection under the Chicago RLTO. Tenants should strive to make sure they are comfortable with their prospective landlord and that the rental property is in good condition before signing any lease.

The appellate court's full opinion, (docket number 1-08-3296), may be found on the Illinois Court's home page at: http://www.state.il.us/court/Opinions/AppellateCourt/2009/1stDistrict/August/1083296.pdf