Illinois Senate Bill 1563: Squatter Relief for Property Owners, Landlords, & REO Professionals

Illinois Senate Bill 1563: Squatter Relief for Property Owners, Landlords, & REO Professionals

Illinois Senate Bill 1563, widely known as the “Squatter Bill”, has passed both houses and is awaiting Governor JB Pritzker’s approval. This bill is a pivotal shift in how unauthorized occupants, or “squatters,” are managed statewide. As housing challenges evolve statewide, IL SB 1563 addresses long-standing frustrations property owners have faced when dealing with individuals who exploit the legal gray areas to unlawfully occupy homes and rental properties, often without paying any rent.

For Chicago landlords, investors, REO managers, and property managers, this legislation marks a turning point in the rental market. It offers legal clarity while providing more enforcement power and quicker resolution timelines without navigating the often costly and time-consuming eviction courts. Understanding the specifics of IL SB 1563 and its practical applications will help you better protect your Illinois assets and bolster your long-term investment strategy.

What IL SB 1563 Fundamentally Changes

Senate Bill 1563 introduces long-awaited protections for property owners by clarifying the distinction between unlawful occupants (“squatters”) and lawful tenants. The bill reinforces already existing property rights without altering the judicial due process. It simply enables the enforcement of existing criminal laws in clearer, more actionable ways, like allowing police to act decisively when there’s no valid lease. The legislation:

• Affirms that the Illinois Eviction Article does not restrict police from removing criminal trespassers.

• Empowers law enforcement to take immediate action when property owners show legal ownership.

• Criminalizes the use of fraudulent documents or false identity to claim residence in a property.

How SB 1563 Works in Practice

For owners and property managers in Chicago, SB 1563 dramatically simplifies the squatter response process. This new legal path enables Chicago property management companies to expedite turnover processes, reduce vacancy time, and protect clients from losses resulting from adverse possession attempts, lease fraud, and unauthorized occupancy. IL SB 1563 provides a clearer legal process for resolving squatter incidents. These steps include:

1. Owner confirms legal control: typically with a deed, title, or other proof of ownership.

2. Police review on-site documentation: to verify the absence of a lawful tenancy or lease agreement.

3. Trespasser is removed: no civil eviction filing needed, minimizing delays and property damage risk.

4. Property is resecured and reoccupied: typically within days instead of months.

Updated Overview of the Law

IL SB 1563 primarily aims to clarify the existing ambiguities and gray areas in the current law to help restore enforcement authority to local municipalities. This legislative change doesn’t diminish tenant rights, but instead restores a balance by clarifying which situations are considered unlawful occupancy and legal residency. Giving property owners a stronger foundation to act quickly and lawfully while protecting their other tenants. Specifically:

• It updates language in Illinois’ Eviction Article to affirm that criminal trespass enforcement remains valid and enforceable, even if civil eviction is not yet underway.

• The bill targets individuals using forged leases, fraudulent documentation, or identity misrepresentation to delay removal or create confusion over tenancy.

• Supported by both Democratic and Republican lawmakers, the bill passed with overwhelming bipartisan support and now awaits Governor J.B. Pritzker’s expected signature.

IL SB 1563: What Are The Next Steps?

As of June 18th, Illinois SB 1563 has been sent to Gov. JB Pritzker for his approval, the last step in the legislative process. Although he has 60 calendar days to decide, political and real estate leaders in Springfield express strong confidence that Gov. Pritzker will sign the measure. His supporters cite direct engagement with his administration and broad bipartisan backing as clear indicators that the bill is likely to become law.

So if you are a property owner, landlord, or REO professional experiencing squatters in your Chicago investment property and are seeking to file an eviction, now is the time to prepare. IL SB 1563 gives Chicago property management companies like PRG Management the legal authority to act quickly and decisively, allowing the police can take immediate action once proof of ownership is provided, so squatter issues can be resolved almost immediately.

With the new legal framework from IL SB 1563, PRG Management’s experienced Chicago property managers are here to support landlords and property owners with any tenant-related issues affecting your cash flow. With over 2,800 units managed and $1B in assets under care, PRG Management provides customized Chicago property management solutions, including tenant management, compliance oversight, financial reporting, and much more. To talk to a property manager about how IL SB 1563 impacts your properties or tenants, contact PRG Management anytime. Our experienced Chicago property team is happy to answer any questions about your investment and provide a free proposal for services.

Has Lincoln Yards Found New Potential Investors?

The state of Lincoln yards

The Lincoln Yards project is a major Chicago real estate development that planned to take over a former industrial site along the Chicago River on the city’s North Side. The project was announced in 2019 and its goal was to utilize 53 acres of industrial riverfront space to link several of Chicago's bustling neighborhoods, including Wicker Park and Lincoln Park. The vision for Lincoln Yards detailed a comprehensive mixed-use development with approximately 6,000 residential units and a variety of entertainment offerings.

The plans for Lincoln Yards include a variety of commercial, residential, and retail real estate developments. Starting with the residential property plans the designs included the construction of thousands of residential units, ranging from apartments to condominiums and townhouses. These living spaces would cater to a mix of demographics, offering a variety of sizes, styles, and amenities to accommodate different lifestyles. Additionally, some commercial properties were planned in Lincoln Yards, which would feature substantial office space and serve as a hub for businesses across various sectors. Finally, Lincoln Yards real estate development plans included ample public spaces which would include public green spaces, parks, and recreational areas all working towards promoting outdoor activity, relaxation, and community gathering.

With an estimated budget of $6 billion for the large property, the developer Sterling Bay has finished 1 building at the southern end of the massive site. Named ALLY and situated at 1229 W. Concord Place, the building focuses on accommodating the life-sciences industry, providing 285,000 square feet of area and rising 144 feet in height. Nevertheless, it has faced challenges in attracting occupants which was not the promising start Sterling Bay may have hoped for.

Lincoln Yards New Investment Opportunities?

However, in the past few years, several holds have been made on the large-scale project over concern about the infrastructural issues and potential problems with transportation. Previously in 2022, there was hope for construction to start but those developments never came to Lincoln Yards. It seemed Sterling Bay, the project's developers, were at a stand-still with city officials. However, in recent news, new investors have stepped forward to join the large-scale project potentially.

In March 2024, Representatives of the Kayne Anderson investment firm met with city planning officials and executives from Sterling Spring to discuss potentially revamping the Lincoln Yards real estate project. If the LA-based firm does choose to join the project, this could be a major update for the future of Lincoln Yards and may refresh the project’s original designs. Among the advisors for Kayne Anderson included Darren Sloniger, formerly associated with Marquette Companies who engaged in discussions to serve as the primary financial backer for the project potentially. Last year, Sloniger stepped down as the CEO of the Naperville-based developer Marquette. Over the years Marquette has developed hundreds of apartment projects in the Fulton market with Sloniger at its head.

With such powerful names in the world of investment and real estate in the talks to acquire Lincoln Yards, the project may finally have a chance to move forward. The future looks promising for this massive Chicago real estate development project, and the potential for its expansion seems to be imminent in the next few months. Lincoln Yards aims to create a vibrant, sustainable, and inclusive urban community that integrates residential, commercial, retail, and recreational elements. By repurposing underutilized industrial land, the project seeks to transform the area into a dynamic and thriving neighborhood that enhances the quality of life for residents and contributes to the economic vitality of Chicago, and hopefully, these new potential investors will help that happen.

If you are interested in this investment opportunity or are looking for some consultation on an existing property, our team of commercial real estate veterans are here for you! Contact us today with the form below to talk to a commercial real estate expert at PRG Management!

Maximize Your ROI with a Chicago Investment Property Manager

How To Maximize Your Return on Investment with a PRG Investment Property Manager

In the heart of the Midwest, Chicago's real estate landscape is ripe with opportunities for investment properties. Navigating this landscape requires more than just ownership—it demands thoughtful management. This is where the expertise of a Chicago investment property manager becomes invaluable. By entrusting your property to seasoned Chicago property managers, you not only protect your investment but also significantly enhance your ROI.

An investment property manager serves as the guardian of your real estate assets. They handle everything from tenant relations to maintenance with the main goal of maximizing your property's profitability. These professionals are equipped with the essential local knowledge for navigating the city's diverse neighborhoods and complex (and ever-changing) regulations.

Benefits of Hiring a Chicago Investment Property Manager

Maximized Rental Income

Determining the right rental price in Chicago can be tricky, requiring an intimate understanding of the local market. Effective Chicago investment property managers regularly analyze local market reports to set rental rates that attract tenants while maximizing your income. Maximizing your investment property’s ROI also requires a proactive approach to minimizing vacancy periods between tenants. An experienced property manager minimizes the turnover period, ensuring no gap in your income stream.

Cost-Efficient Property Maintenance

Proactive preventative maintenance is pivotal in preserving the value of your investment for any property. Investment property managers work to establish relationships with a network of reliable contractors and vendors, ensuring maintenance issues are addressed promptly and affordably. Not only does this save money in the long run but it also keeps tenants satisfied, thus reducing turnover.

Rigorous Tenant Screening Process

The cornerstone of a successful investment property is a reliable tenant. Through a meticulous screening process, property managers vet potential tenants for financial stability and reliability, significantly reducing the risks of late payments and evictions. This thoroughness ensures your property is occupied by tenants who respect your property and fulfill their lease obligations. Effective Chicago property companies will work closely with reputable Chicago real estate firms like Pearson Realty Group to minimize vacancy rates.

Streamlined Rent Collection and Financial Management

The biggest threat to your ROI on an investment property is tenants not paying rent. Through a meticulous screening process, Chicago property managers vet potential tenants for financial stability and reliability, significantly reducing the risks of late payments and evictions. This vigorous process ensures your property is occupied only by tenants who respect your property and fulfill their lease obligations.

Knowledge of Local Laws and Regulations

Many landlords and investors don’t have the time to keep up with the ever-changing local laws and regulations surrounding property and tenants’ rights. Chicago's investment property managers are well-versed in local, state, and federal regulations, from fair housing laws to building codes. Their expertise safeguards property owners against legal issues, avoiding pitfalls that could cost you big time, offering peace of mind and protection from potential litigation.

Choosing the Right Investment Property Manager in Chicago

Selecting the right investment property manager is paramount for Chicago property owners looking to maximize their ROI. By leveraging the expertise of a seasoned investment property manager you can reduce stress, and ensure your property is a source of pride and profit. If you're ready to take your investment to the next level, PRG Management is here for you.

Request a FREE proposal of management services here or simply fill out the form below! With over a decade of experience maximizing the return of thousands of units across Chicagoland, our investment property management team is here to give you peace of mind.