## Property management disputes in Illinois **Property management** is increasingly central to real estate — but creates legal disputes between property owners + management companies, between managers + tenants, and between owners + tenants when management is involved. Illinois property management has specific licensing + regulatory requirements. ## ${s.name} licensing requirements **Most states require:** - Real estate license (often broker level) - Specific to ${s.name} requirements - Specific exemptions (limited) - Property management as agency relationship **${s.name} specific:** - Specific licensing - Specific exemptions - Specific procedures - Specific oversight **Unlicensed activity:** - Civil penalties - Criminal sometimes - Disgorgement of fees - Specific consequences ## Owner-manager disputes **Common issues:** **Fee disputes:** - Management fees (5-10% typical) - Specific charges - Hidden fees - Specific to contract - Non-disclosed markups **Accounting issues:** - Inadequate accountings - Specific deposits + payments - Specific reserves - Trust account compliance - Specific to ${s.name} **Authority issues:** - Manager exceeding authority - Specific actions taken - Specific to contract - Specific limits **Performance issues:** - Inadequate management - Specific failures - Tenant problems - Specific to standards **Trust account / commingling:** - Owner funds not segregated - Specific violations - Specific procedures - License consequences **Termination disputes:** - Notice requirements - Specific procedures - Final accounting - Specific to contract ## Management agreements **Critical document:** **Should include:** - Specific scope of services - Fee structure (clear) - Specific authority limits - Specific reporting - Trust account procedures - Specific termination - Specific dispute resolution - Indemnification - Insurance requirements **Common provisions:** - Marketing + leasing - Tenant screening - Lease execution - Rent collection - Maintenance + repairs - Trust accounts - Eviction handling - Specific reporting - Specific authority limits ## Manager-tenant disputes **Common issues:** **Security deposits:** - See security deposit guide - Specific to ${s.name} - Manager liability - Specific procedures **Maintenance + repairs:** - Habitability issues - Specific obligations - Specific procedures - Tenant remedies **Eviction issues:** - See eviction guide - Specific to ${s.name} - Manager authority - Specific procedures **Communications:** - Inadequate response - Specific notice issues - Specific to issues - Manager liability **Discrimination:** - Manager liability - Owner liability - Both potentially liable - See fair housing guide ## Trust account requirements **Strict regulations:** - Specific to ${s.name} - Tenant deposits separated - Owner funds separated from manager - Specific record-keeping - Specific audits possible - License consequences for violations **Common violations:** - Commingling - Inadequate records - Specific deposits - Specific procedures - License revocation possible ## Liability issues **Owner vs manager liability:** **Owner generally liable:** - Tort claims (slip + fall) - Premises liability - Specific to circumstances - Cannot delegate liability **Manager generally liable:** - Negligent management - Specific actions taken - Specific to scope - Specific contract **Joint liability:** - Often both - Specific to circumstances - Specific to contract - Insurance considerations **Indemnification:** - Often manager indemnifies owner - Specific procedures - Specific scope - Limited applicability ## Insurance requirements **For owners:** - Property insurance - Liability insurance - Umbrella sometimes - Specific to property **For managers:** - Errors & omissions (E&O) insurance - Specific to professional liability - Specific to scope - Important coverage **Specific provisions:** - Manager named additional insured - Specific waivers - Specific subrogation - Specific to coverage ## Litigation considerations **Common claims:** **Owner against manager:** - Breach of contract - Breach of fiduciary duty - Negligence - Conversion - Specific damages **Manager against owner:** - Breach of contract - Unpaid fees - Specific to circumstances - Specific damages **Tenant against either:** - Various tenant claims - Specific to circumstances - Both may be defendants - Specific liability allocation ## ${s.name} regulatory oversight **State real estate commission:** - Licensing oversight - Complaints procedure - Investigation - License consequences - Specific to ${s.name} **Trust account audits:** - Periodic - Specific procedures - License consequences - Specific to compliance **Continuing education:** - License renewal - Specific topics - Specific to ${s.name} - Continuing requirement ## Specific scenarios **Eviction handled by manager:** - Manager authority - Specific procedures - Owner involvement - Specific to contract **Repair disputes:** - Manager's authority limit - Owner approval requirements - Tenant's rights - Specific to circumstances **Lease modification:** - Manager authority typically limited - Specific to contract - Owner approval - Specific procedures **Tenant lawsuits:** - Manager + owner sued - Specific allocation - Insurance issues - Specific defenses **HOA disputes:** - Manager often handles - Specific authority - Specific procedures - Specific issues ## Best practices **For owners:** - Comprehensive management agreement - Specific authority limits - Regular accounting reviews - Trust account verification - Specific reporting - Insurance verification - Periodic reviews - Specific to ${s.name} **For managers:** - Strong contract documentation - Trust account compliance - Specific record-keeping - Specific reporting - E&O insurance - Continuing education - Specific procedures - License compliance **For tenants:** - Identify owner + manager - Specific lease provisions - Communications in writing - Specific to ${s.name} - Specific rights ## Common mistakes **Owner mistakes:** - Inadequate contract - No regular review - Trusting too much - Inadequate oversight - Specific failures **Manager mistakes:** - Trust account violations - Inadequate documentation - Exceeding authority - Specific procedural failures - License non-compliance **Tenant mistakes:** - Inadequate documentation - Not knowing rights - Specific to ${s.name} - Failure to communicate in writing ## Termination of management **Owner-initiated:** - Notice requirements - Specific to contract - Final accounting - Trust account transfer - Specific procedures **Manager-initiated:** - Notice to owner - Specific procedures - Final services - Specific to contract **Disputes during termination:** - Final accounting - Specific deposits - Trust account transfer - Specific records - Specific to ${s.name} ## What you should do If you have property management disputes in Illinois: review management agreement, document specific issues, file complaint with Illinois real estate commission if appropriate. Most Illinois real-estate attorneys handle property management disputes. Trust account violations particularly serious. Specific to Illinois regulations. --- *This guide is general information about Illinois law as of mid-2026 and is not legal advice. Property management is technical + regulated. Talk to a licensed Illinois real-estate attorney about your specific situation.*