Free Illinois Security Deposit Interest Notice
Illinois security deposit interest notice under 765 ILCS 715/. Required for buildings with 25+ units on deposits held over 6 months. Chicago RLTO §5-12-080 applies separately to most Chicago rentals.
Free Illinois Security Deposit Interest Notice — overview
A Illinois Security Deposit Interest Notice is the annual interest disclosure required under the Illinois Security Deposit Interest Act (765 ILCS 715/) for landlords of buildings with 25 or more rental units. Chicago landlords are subject to additional requirements under Chicago RLTO §5-12-080.
Complete the Security Deposit Interest Notice
Complete the form below to generate a Illinois Security Deposit Interest Notice. Required for buildings with 25 or more units holding security deposits more than 6 months. Verify current rate at IDFPR. Chicago RLTO applies separately – use the Chicago-specific notice if applicable.
⚠ Security deposit handling is one of the most-litigated areas of landlord-tenant law
Courts strictly enforce statutory itemization, timing, and notice requirements. Illinois 765 ILCS 715/2 imposes penalties of the deposit + 2x deposit + attorney fees for failure to pay interest after written demand by tenant. Document every charge with photos, receipts, and inspection records. Consult a Illinois attorney for high-value disputes.
1. Parties
2. Rental Property & Lease
3. Security Deposit Held
4. Interest Rate & Disclosure
Illinois Security Deposit Interest Act (765 ILCS 715/) requires landlords of buildings with 25+ units to pay interest annually on security deposits held more than 6 months. The interest rate is set by the Department of Financial and Professional Regulation. Chicago RLTO applies to most Chicago rentals regardless of building size and has separate requirements.
5. Landlord / Agent Signature
About the Illinois Security Deposit Interest Notice
The Illinois Security Deposit Interest Act (765 ILCS 715/) requires landlords of buildings with 25 or more rental units to pay annual interest on security deposits held more than 6 months. The interest rate is set annually by the Illinois Department of Financial and Professional Regulation (IDFPR). Interest must be paid within 30 days after the end of each 12-month rental period. Chicago landlords are also subject to the more stringent Chicago RLTO §5-12-080, which applies to most Chicago rentals regardless of building size. The statewide penalty for non-payment of interest is severe: if the landlord fails to pay interest within 30 days of written demand by the tenant, the tenant may recover the deposit itself PLUS two times the deposit PLUS reasonable attorney fees under 765 ILCS 715/2.
Illinois Security Deposit Framework
- Statewide: 765 ILCS 715/ (Illinois Security Deposit Interest Act)
- Coverage: buildings with 25 or more rental units
- Deposits held: more than 6 months
- Interest rate: set annually by IDFPR
- Chicago: RLTO §5-12-080 applies separately (more stringent)
- Penalty: deposit + 2x deposit + attorney fees for non-payment after demand
Penalties for Improper Handling
Illinois has two layers of security deposit interest requirements. Statewide (765 ILCS 715/), the requirement applies to buildings with 25 or more units holding deposits more than 6 months – and the penalty for non-payment after written demand is the deposit + 2x deposit + attorney fees. Chicago RLTO §5-12-080 is stricter, applying to most Chicago rentals regardless of building size and imposing 2x deposit + attorney fees + costs for various technical violations. Best practice: verify whether your building falls under statewide and/or Chicago requirements, calculate interest correctly using the current IDFPR rate, and pay annually within 30 days of each 12-month rental period anniversary. Keep records of payment.
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 Illinois guidance, visit IL Department of Financial and Professional Regulation and review 765 ILCS 715/. Chicago landlords: review the Chicago RLTO. Consult a qualified Illinois attorney for high-value disputes.
