Free Chicago Security Deposit Interest Rate Notice
Chicago security deposit interest rate notice under Chicago RLTO §5-12-080. Required annual disclosure of interest rate paid on security deposits. Penalties for non-compliance: two times the deposit + attorney fees.
Free Chicago Security Deposit Interest Rate Notice — overview
A Chicago Security Deposit Interest Rate Notice is an annual disclosure required under Chicago RLTO §5-12-080. Landlords holding security deposits on covered units must pay interest at the rate set annually by the City Comptroller and provide this notice to the tenant.
Complete the Security Deposit Interest Rate Notice
Complete the form below to generate a Chicago Security Deposit Interest Rate Notice. The notice should be delivered annually and include the current interest rate published by the City Comptroller. Verify the rate at the City of Chicago website before delivering.
⚠ Security deposit handling is one of the most-litigated areas of landlord-tenant law
Courts strictly enforce statutory itemization, timing, and notice requirements. Chicago RLTO §5-12-080 imposes penalties of TWO TIMES THE DEPOSIT plus attorney fees and costs for non-compliance. Document every charge with photos, receipts, and inspection records. Consult a Chicago attorney for high-value disputes.
1. Parties
2. Rental Property & Lease
3. Security Deposit Held
4. Interest Rate & Disclosure
Chicago Residential Landlord-Tenant Ordinance (RLTO) §5-12-080 requires landlords holding security deposits on covered units to pay interest annually at the rate published by the City Comptroller. The rate changes annually – verify the current rate at the City of Chicago website.
5. Landlord / Agent Signature
About the Chicago Security Deposit Interest Rate Notice
Chicago’s Residential Landlord-Tenant Ordinance (RLTO), specifically §5-12-080, imposes strict requirements on landlord handling of security deposits. The landlord must hold the deposit in a separate account at a federally-insured financial institution within Illinois, pay interest annually at the rate set by the City Comptroller (which is updated each year), and provide written disclosure of the rate to the tenant. The RLTO applies to most rental units in Chicago but exempts owner-occupied buildings of 6 or fewer units. Penalties for non-compliance are severe: §5-12-080(f) provides for payment of two times the deposit plus reasonable attorney fees and costs – meaning a non-compliant landlord could lose the entire deposit and pay substantial additional damages.
Chicago Security Deposit Framework
- Ordinance: Chicago RLTO §5-12-080
- Required: hold deposit in separate IL-based federally-insured account
- Required: pay interest annually at City Comptroller rate
- Required: written disclosure of interest rate to tenant annually
- Exemption: owner-occupied 6-or-fewer-unit buildings
- Penalty: 2x deposit + attorney fees + costs for non-compliance
Penalties for Improper Handling
Chicago RLTO §5-12-080(f) is one of the strictest security deposit statutes in the country. A landlord who fails to comply with the requirements (separate account, annual interest payment, written disclosure) may be required to pay the tenant TWO TIMES the amount of the deposit plus reasonable attorney fees and reasonable costs. Chicago courts have applied this penalty strictly – even technical violations (wrong interest rate, late disclosure, commingled account) can trigger the doubling penalty. The penalty is in addition to return of the deposit itself, meaning a non-compliant landlord effectively pays three times the deposit value plus the tenant’s legal costs.
Best Practices
- Document with photos. Move-in and move-out photos are powerful evidence in any deposit dispute.
- Keep receipts. Charges must be supported by actual costs – retain invoices, contractor estimates, and receipts.
- Distinguish wear-and-tear from damage. Normal wear-and-tear is NOT chargeable in any state. Faded paint, minor carpet wear, and small nail holes are typically not chargeable.
- Time everything precisely. Most states have strict statutory deadlines from move-out for itemization and return. Missing the deadline can forfeit ALL deduction rights.
- Send by trackable method. Certified mail with return receipt is the gold standard – establishes both delivery and receipt date.
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⚖ Legal Disclaimer
This form is provided for general informational purposes only and does not constitute legal advice. Security deposit handling is procedurally strict; improper itemization, timing, or notice can result in statutory penalties (often double or triple the deposit amount plus attorney fees). For Chicago-specific guidance, visit City of Chicago and review the Chicago RLTO. Consult a qualified Chicago attorney for high-value disputes.
