Illinois Security Deposit Laws: No Cap, the 30/45-Day Return, and Penalties
No Statewide Cap · Unit-Count Thresholds · Itemized Statement · Interest · Chicago RLTO · Penalties
Illinois security deposit law is unusual: there is no single statute that governs every rental. Instead, two narrow Acts pick up where the lease leaves off — the Security Deposit Return Act, 765 ILCS 710, which controls itemization and returns for buildings with five or more units, and the Security Deposit Interest Act, 765 ILCS 715, which requires interest only for buildings with twenty-five or more units. A landlord renting out a single house or a small two-flat sits largely outside both Acts. And in Chicago, none of that is the whole story, because the city’s own Residential Landlord and Tenant Ordinance is far stricter and overrides the statewide baseline for most units. This guide walks the entire framework: the unit-count thresholds, what you may deduct, the thirty-day statement and forty-five-day return, when interest is owed, the twice-the-deposit penalty, and where the Chicago rules diverge.
The single most important habit in Illinois is to know which rule applies to which building before you do anything else. The wrong assumption — treating a small building as if the Return Act governs, or applying the statewide Acts to a Chicago unit — is exactly how landlords and tenants end up in a dispute. Everything here is general information, not legal advice; confirm the current figures and consult a licensed Illinois attorney before acting on a specific dispute, because these Acts and the Chicago ordinance are amended over time.
Below, a short overview video summarizes the Illinois deposit rules; the sections that follow break down each piece in detail — the no-cap starting point, the five-unit and twenty-five-unit thresholds, deductions versus normal wear and tear, the return timeline, interest, penalties, the Chicago RLTO, and the small-claims path if a dispute cannot be resolved.
Illinois Security Deposit Rules at a Glance
Statewide Cap
None (set by lease)
Return Act
765 ILCS 710 — 5+ units
Return Deadline
30-day statement, 45-day return
Bad-Faith Penalty
Twice the deposit + costs & fees
No Statewide Cap — the Illinois Starting Point
The first thing to understand about Illinois is what it does not have: a statewide dollar limit on security deposits. Unlike states that cap the deposit at one or two months’ rent, Illinois leaves the amount to the lease. A landlord and tenant may agree on whatever figure the market supports, and one month’s rent, or one month plus a partial second, is common. There is no statute a tenant can point to and say the deposit is “too high” as a matter of state law.
That does not mean the amount is completely unregulated everywhere. Local ordinances can add rules, and Chicago in particular regulates how a deposit is held, receipted, and returned even though it too sets no hard cap. So the correct way to think about the cap question in Illinois is this: statewide, the number is a matter of contract; locally, a city ordinance may add handling rules on top. Always read the lease and check for a local ordinance before assuming a deposit amount is or is not allowed.
Why “No Cap” Still Means “Read the Lease Carefully”
Because Illinois leaves the deposit amount to agreement, the lease is where the deposit is defined, and it controls how much is collected and on what terms. A tenant should confirm the exact deposit figure, whether any part is labeled last month’s rent, and what the lease says about deductions before signing. A landlord should state the deposit clearly and separately from rent and from any genuine non-refundable fee, so there is no confusion later about what must be returned.
Takeaway
Illinois has no statewide cap on a security deposit — the amount is set by the lease. That makes the written lease the controlling document on how much is collected, while a local ordinance such as Chicago’s may add handling rules. Verify the current local law before relying on any figure.
The Two Statewide Acts — and the Unit-Count Thresholds
Illinois law layers protection by building size. Two separate Acts do the work, and each has its own threshold. Getting the threshold right is the whole ballgame, because a rule that binds a large building does not touch a small one.
The Security Deposit Return Act — Five or More Units
The Security Deposit Return Act, 765 ILCS 710, applies to a landlord of residential property containing five or more units. Under the Act, a landlord who intends to withhold any part of the deposit for damage may not do so unless, within thirty days after the tenant vacates, the landlord furnishes the tenant an itemized statement of the damage and the actual or estimated cost of repairing or replacing each item, with paid receipts or copies attached. If the landlord gives estimated costs rather than paid receipts, the landlord must furnish the actual receipts within thirty days after the estimate. The deposit or its remaining balance must then be returned — within thirty days when receipts accompany the statement, and within forty-five days when the statement uses estimates and receipts follow.
The Security Deposit Interest Act — Twenty-Five or More Units
The Security Deposit Interest Act, 765 ILCS 715, sets a higher threshold. It requires a landlord of a building — or a complex of buildings on contiguous parcels — with twenty-five or more units to pay interest on a security deposit held longer than six months. The rate is not a fixed percentage; it equals the rate paid on minimum-deposit passbook savings accounts by the largest commercial bank with its main premises in Illinois, measured as of December thirty-first of the year before the lease began. The landlord must pay any interest of five dollars or more within thirty days after the end of each twelve-month rental period, by cash or by a credit against rent.
Small Buildings Sit Outside Both Acts — but Not Outside the Law
A single-family rental, a duplex, a three-flat, or a four-unit building is generally below the five-unit threshold, so the Security Deposit Return Act’s itemization mechanics do not apply, and no building under twenty-five units owes interest under state law. That does not make the deposit a free-for-all: the lease, ordinary contract and property law, and any local ordinance still govern, and a landlord must return whatever is genuinely owed within a reasonable time. If the unit is in Chicago or another city with its own ordinance, the local rule — not the small-building gap in the statewide Acts — controls.
| Building Size | Which Rules Apply (statewide) |
|---|---|
| 1 to 4 units | Neither Act’s mechanics; lease and general law govern (plus any local ordinance) |
| 5 to 24 units | Security Deposit Return Act (765 ILCS 710): itemized statement + 30/45-day return |
| 25 or more units | Return Act itemization + Security Deposit Interest Act (765 ILCS 715): interest on deposits held 6+ months |
| Any building in Chicago | Chicago Residential Landlord and Tenant Ordinance controls (owner-occupied 6-or-fewer-unit buildings largely exempt) |
Takeaway
Illinois protects by building size. The Return Act (765 ILCS 710) binds five-or-more-unit buildings with the itemized-statement and return rules; the Interest Act (765 ILCS 715) binds twenty-five-or-more-unit buildings with interest on deposits held past six months. Smaller buildings fall outside the Acts, and a Chicago unit follows the city ordinance instead.
What a Landlord May Deduct — and What Counts as Wear and Tear
Whatever the building size, the categories of a legitimate deduction are the same. A landlord may keep part of the deposit only to make itself whole for money the tenant actually owes or for damage the tenant actually caused — not to upgrade the unit at the tenant’s expense.
Permitted Deductions
- Unpaid rent. Rent that remains owed for the final month or any earlier period.
- Unpaid utilities. Utility charges the tenant was contractually responsible for and left unpaid at move-out.
- Repair of damage beyond ordinary wear and tear. Broken fixtures, large holes, pet-stained flooring, and similar damage the tenant or their guests caused.
- Other lease-specified charges. Where the lease clearly allows it and the charge is genuine, such as the cost to replace keys or restore lease-listed personal property.
Not Deductible — Ordinary Wear and Tear
Ordinary wear and tear is the natural deterioration that happens from living in a unit normally, and the landlord must absorb it. Illinois treats these as non-deductible:
- Faded or lightly scuffed paint, and small nail holes from hanging pictures.
- Carpet worn thin along walkways from ordinary foot traffic, with no stains or pet damage.
- Minor marks, loose grout, or caulk that has aged around tubs and sinks.
- Worn but still-functioning appliances and fixtures that simply reached the end of their useful life.
The Prorating Idea for Paint and Carpet
Even when repainting or carpet replacement is justified by real damage, a landlord generally should not charge the tenant the full cost of a brand-new surface. Paint and carpet have an expected useful life, so a fair charge accounts for age — a tenant who damaged a carpet already several years into its life should pay only for the remaining life, not a whole new carpet. Under the Return Act, that charge also has to be backed by a paid receipt or an estimate, which makes a full-price claim on an old surface especially hard to defend.
Takeaway
You may deduct only for unpaid rent, unpaid utilities, and damage beyond ordinary wear and tear, plus genuine lease-specified charges. Faded paint, worn carpet, and small nail holes are wear and tear you absorb. In a five-or-more-unit building, back every deduction with a paid receipt or an estimate, or the Return Act’s penalty can follow.
The 30-Day Statement, the 45-Day Return, and the Itemized Statement
For a building the Return Act covers — five or more units — the deadline structure is the part landlords miss most. Under 765 ILCS 710, a landlord who deducts for damage may not keep any part of the deposit unless, within thirty days after the tenant vacates, the landlord delivers or mails an itemized statement of the damage and the actual or estimated cost to repair or replace each item, with paid receipts attached. The clock runs from the day the tenant actually surrenders the unit.
What the Itemized Statement Must Include
The statement must describe each item of damage and its actual or estimated cost. When the landlord already has the work done, it attaches the paid receipts. When the landlord provides an estimate instead, it must furnish the actual paid receipts within thirty days after sending the estimate. That two-step path is why the return deadline can extend from thirty days to forty-five: a statement built on receipts closes quickly, while one built on estimates gives the landlord additional time to substantiate before the balance is due.
Skip the Statement, Lose the Protection
Under the Return Act, a landlord in a covered building who refuses to supply the itemized statement, or supplies it in bad faith, and fails to return the deposit due, is exposed to a penalty of twice the deposit plus court costs and reasonable attorney’s fees. The statement is not a formality — it is the condition on withholding anything at all. Calendar the thirty-day deadline the moment the tenant surrenders, gather receipts, and mail the statement with proof well before the deadline runs.
No Forwarding Address? Mail to the Last Known Address
An Illinois tenant is not required to give a forwarding address, though providing one in writing at move-out is the surest way to receive the statement and refund promptly. If the tenant leaves no address, the landlord should mail the itemized statement and any refund to the last known address — commonly the rental unit itself — and keep proof of mailing. A landlord should not sit on the funds waiting for an address; the obligation to send the statement on time still applies.
Takeaway
In a five-or-more-unit building, deliver a written itemized statement with paid receipts within thirty days of move-out and return the balance within thirty days — or within forty-five days if you used estimates and receipts follow. Skip the statement or act in bad faith and you can owe twice the deposit plus costs and attorney’s fees.
Interest on Deposits — Only for the Largest Buildings
Statewide, interest is a big-building question. Under the Security Deposit Interest Act, 765 ILCS 715, a landlord of a building or contiguous complex with twenty-five or more units must pay interest on a deposit held longer than six months. A landlord below that threshold owes no interest under state law, no matter how long the deposit is held.
The rate is set by a formula rather than a fixed number. It equals the interest paid on minimum-deposit passbook savings accounts by the largest commercial bank — measured by total assets — with its main premises in Illinois, as of December thirty-first of the year before the lease started. Because that passbook rate has been extremely low in recent years, the annual interest a covered tenant is owed is often small, but the landlord still must calculate it and pay any accrued interest of five dollars or more within thirty days after the end of each twelve-month rental period. The Illinois Department of Financial and Professional Regulation publishes the applicable rate each year, so verify the current figure before a calculation.
Separate Account and Non-Refundable Fees
Two points often confuse Illinois landlords. First, statewide law does not impose a general separate-account mandate for every deposit, though holding deposits segregated is sound practice and Chicago’s ordinance does require a separate Illinois account for covered units. Second, Illinois does not broadly ban non-refundable fees the way some states do — a lease may include a genuine, clearly labeled non-refundable move-in or pet fee — but money truly collected as a security deposit stays refundable and cannot be relabeled to escape the return rules. In Chicago, non-refundable fees are limited more tightly, so confirm what is allowed there.
Takeaway
Statewide interest is owed only by buildings of twenty-five or more units, on deposits held past six months, at a bank-passbook rate set annually. Smaller buildings owe no interest under state law. Chicago has its own separate interest rule, and non-refundable fees are treated differently there — verify the current rate and local rule.
Penalties for Bad-Faith Withholding
Illinois backs the Return Act with a real penalty. Under 765 ILCS 710, if a court finds that a landlord of a covered five-or-more-unit building refused to supply the required itemized statement, or supplied it in bad faith, and failed to return the deposit due, the landlord is liable for damages equal to twice the amount of the security deposit, together with court costs and reasonable attorney’s fees. That multiplier is on top of returning whatever was wrongfully withheld.
Bad faith is more than being wrong about a single deduction. It generally means the landlord ignored the statement requirement, invented charges, refused to itemize, or kept the deposit with no legitimate basis. A landlord who sends a clear itemized statement with receipts on time is well protected even if one deduction is later disputed. The penalty exists to punish the landlord who treats the deposit as free money, not the one who makes a documented, good-faith judgment call. The attorney’s-fees provision matters especially, because it can make even a modest deposit worth a lawyer’s time to pursue.
How the “Twice the Deposit” Math Adds Up
Consider a deposit of one month’s rent in a covered building that the landlord keeps entirely with no itemized statement. The tenant can recover the wrongfully withheld amount, plus twice the deposit as statutory damages, plus court costs and attorney’s fees. On a typical Illinois rent, that quickly reaches several times the original deposit — far more than any legitimate deduction would have been. In Chicago, the ordinance adds its own two-times-plus-interest penalty for covered units, so the exposure there is at least as large. The lesson is simple: the cost of doing it right is trivial next to the cost of doing it wrong.
Chicago Is Different: the Residential Landlord and Tenant Ordinance
If the rental is in Chicago, set the statewide Acts aside and start with the city. The Chicago Residential Landlord and Tenant Ordinance (the RLTO) is far stricter than Illinois law and covers most rental units in the city. The main exemption is narrow: an owner-occupied building with six or fewer units is generally outside the ordinance. Nearly everything else in Chicago is covered, regardless of the five-unit and twenty-five-unit thresholds that shape the statewide Acts.
For a covered Chicago unit, the RLTO layers several obligations that state law does not impose on smaller buildings. The landlord must hold the deposit in a separate, federally insured Illinois account and cannot commingle it with the landlord’s assets; give the tenant a written receipt identifying the bank; pay annual interest at a rate the City Comptroller sets each year; deliver an itemized statement of any damages within thirty days after the tenant moves out; and return the deposit within forty-five days after the tenant vacates (or within seven days in the event of fire or casualty). The RLTO’s penalty is severe: a landlord who violates the security-deposit provisions can owe the tenant two times the deposit plus the interest due, and attorney’s fees and costs.
Chicago Tenants and Landlords: Follow the Ordinance, Not the Statewide Acts
Do not mix the two regimes. The statewide Security Deposit Return Act and Interest Act use building-size thresholds; the Chicago RLTO covers most city units without those thresholds and adds separate-account, receipt, annual-interest, and disclosure duties the Acts never require. A Chicago landlord who follows only the statewide Acts will miss the ordinance’s requirements and risk the two-times penalty. If your unit is in Chicago, work from the RLTO, and check whether Cook County’s own residential ordinance reaches a unit just outside city limits. Because the RLTO is amended and its interest rate is reset every year, verify the current ordinance and rate.
Takeaway
A Chicago rental follows the RLTO, not the statewide Acts: separate Illinois account, written receipt, annual interest at the city rate, a thirty-day itemized statement, a forty-five-day return, and a two-times-deposit-plus-interest-and-fees penalty. Owner-occupied buildings of six or fewer units are largely exempt. Verify the current ordinance and rate.
The Move-Out Procedure, Step by Step
Put the rules together and the Illinois move-out becomes a repeatable checklist rather than a judgment call. Follow this sequence and penalty exposure all but disappears.
Confirm which rules apply
Check building size and location. Five or more units triggers the Return Act; twenty-five or more adds the Interest Act; a Chicago unit follows the stricter RLTO. Fix the applicable deadline before anything else.
Inspect and photograph at surrender
When the tenant returns the keys, inspect promptly and photograph every room. Compare against the signed move-in checklist to separate tenant damage from ordinary wear and tear.
Calculate lawful deductions
Deduct only for unpaid rent, unpaid utilities, and damage beyond wear and tear. Prorate paint and carpet for age. Gather a paid receipt or a written estimate for each charge.
Deliver the itemized statement within thirty days
For a covered building, mail or deliver an itemized statement of the damage and the actual or estimated cost, with paid receipts attached, within thirty days after the tenant vacates.
Return the balance on time
Return the remaining deposit within thirty days, or within forty-five days if you used estimates and receipts follow, keeping proof of mailing. Chicago tenants get the RLTO timeline and any interest due.
A thorough move-out record starts at move-in. Use a documented Illinois move-in and move-out checklist and photographs at both ends so you can prove exactly what the tenant caused. When you do withhold, a clean Illinois security deposit itemization form keeps the statement organized and defensible, and Chicago landlords can pair it with a Chicago security deposit interest rate notice.
When a Dispute Reaches Small Claims Court
Most deposit disputes never reach a courtroom, but when they do in Illinois, they usually land in small claims court — a forum designed to be used without a lawyer. As of 2026, an Illinois small claims case can seek up to ten thousand dollars, which comfortably covers a deposit dispute and the statutory two-times multiplier in most cases. Verify the current limit, which the Illinois Supreme Court sets by rule and can change over time.
✓ The Landlord Who Wins
- Signed move-in checklist plus dated move-in photos.
- Itemized statement mailed within thirty days, with paid receipts or estimates.
- Balance returned within the thirty- or forty-five-day deadline.
- Interest paid where a twenty-five-or-more-unit building or the RLTO required it.
- Proof of mailing (certified mail or a tracked method).
✕ The Landlord Who Loses
- No move-in documentation to compare against.
- A vague statement listing “cleaning” or “painting” with no receipt.
- Deductions for ordinary wear and tear.
- No itemized statement at all in a covered building.
- A Chicago landlord who ignored the RLTO’s separate-account and interest duties.
The pattern is consistent: Illinois deposit cases are won on paper. The landlord who documents condition at both ends, itemizes clearly, attaches receipts, pays any interest owed, and mails on time rarely loses — and the tenant who keeps their own photos and a copy of the written statement is equally well positioned to recover a wrongful withholding.
Special Situations: Sale of the Property, Roommates, and Fees
Beyond a routine move-out, a handful of situations trip up Illinois landlords because the deposit rules interact with other events. Three come up often.
When the Property Is Sold
When a landlord sells a rental, the deposit does not simply disappear from the picture. The seller should either transfer the remaining deposit (after any lawful deductions) to the buyer as the new owner, or account for and return it to the tenant, and the transfer should be documented in writing so the tenant knows who now holds the funds. A buyer of an occupied Illinois property should confirm in escrow that deposits — and, for a covered building or a Chicago unit, any accrued interest — are transferred and documented, because a new owner can inherit liability for a deposit the seller failed to hand over.
Roommates and a Single Deposit
Where several tenants share a lease and a single deposit, Illinois treats the deposit as one sum tied to the tenancy, not as separate shares. When one roommate leaves and another stays, the return obligation is generally triggered only when the tenancy as a whole ends and the unit is surrendered — not each time one roommate moves out mid-lease. Splitting the refund among roommates is usually a private matter among the tenants. A landlord should return the single deposit to the tenants collectively unless the lease or a written agreement directs otherwise, and avoid getting drawn into dividing it.
Genuine Fees Versus a Disguised Deposit
Illinois does not broadly ban non-refundable fees, so a lease may include a real, clearly labeled non-refundable fee — a move-in fee or a pet fee, for example. The line to respect is between a genuine fee and a disguised deposit. Money collected to secure against damage or unpaid rent is a security deposit and stays refundable, whatever the lease calls it; a landlord cannot relabel a deposit as a “fee” to escape the itemization and return rules. In Chicago, the ordinance limits non-refundable fees more tightly, so a Chicago landlord should confirm what the RLTO allows before charging one. For how a deposit interacts with rent adjustments, see our guide to Illinois rent increase laws.
Documentation: the Evidence That Wins Deposit Cases
Every rule above ultimately turns on proof. Under the Return Act, the landlord must justify each deduction with an itemized statement and receipts, which means the landlord who cannot document a charge loses it — regardless of whether the damage was real. Build the evidence file across the whole tenancy, not at the end.
At Move-In
- A written condition checklist, room by room, signed and dated by the tenant.
- Timestamped photos or video of every wall, floor, fixture, and appliance, stored where the date cannot be doubted.
- A written note of any pre-existing wear, so it is never later charged to the tenant.
- For a Chicago unit, the written receipt naming the bank where the deposit is held.
During the Tenancy
- A dated log of every maintenance request and the landlord’s response, which also rebuts a habitability defense.
- Records of any lawful entry to inspect or repair, made with proper notice under Illinois entry rules — see Illinois landlord entry laws.
- For covered buildings, a running record of any interest accrued and paid each rental year.
At Move-Out
- A second set of timestamped photos taken at surrender, to compare against move-in.
- Paid receipts or written estimates for every charge, attached to the itemized statement.
- Proof that the itemized statement and refund were mailed within the applicable deadline.
The Single Most Common Failure
The deduction Illinois landlords lose most often is the vague one: a line that reads “cleaning” or “painting” with a number and nothing behind it. Under the Return Act, a statement without receipts or estimates is not just weak — it can forfeit the whole withholding and trigger the two-times penalty. Specificity is the whole game — “professional carpet cleaning to remove pet odor, invoice attached” survives; “cleaning” does not.
Landlord Best Practices to Avoid Deposit Disputes Entirely
The cheapest deposit dispute is the one that never happens. A few disciplined habits protect an Illinois landlord across an entire portfolio.
- Know which regime governs before you collect a dollar. Building size sets the statewide rules; a Chicago address changes everything to the RLTO.
- Document move-in exhaustively. A signed checklist and dated photos of every room create the baseline that decides every future deduction.
- State the deposit clearly and separately. Distinguish it from rent and from any genuine non-refundable fee, so there is no argument later about what must be returned.
- Calendar the deadline at surrender and mail the itemized statement with receipts and proof, well before it expires.
- Pay interest where it is owed. Twenty-five-or-more-unit buildings under state law, and covered Chicago units under the RLTO, must track and pay it.
- Screen carefully before you ever hand over keys. The tenants most likely to leave a unit in disputed condition are often the ones a thorough screening would have flagged.
That last point is where most disputes are actually won — before the lease is ever signed. A prior eviction, a pattern of damage, or unstable finances rarely appears out of nowhere; it usually leaves a trail an applicant’s history reveals. Screening for it is the single highest-leverage habit an Illinois landlord can build.
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Frequently Asked Questions
How much can a landlord charge for a security deposit in Illinois?
Illinois has no statewide statutory cap on the amount of a residential security deposit. A landlord may set the deposit by agreement in the lease, and one to two months’ rent is common. Chicago and some other local governments regulate how deposits are held and returned but do not set a hard dollar cap either. Because a deposit is a matter of contract, read the lease closely and verify the current law, as local rules change.
How long does an Illinois landlord have to return a security deposit?
Under the Security Deposit Return Act, 765 ILCS 710, which applies to buildings with five or more units, a landlord who deducts for damage must furnish an itemized statement with paid receipts within thirty days after the tenant moves out, and must return the balance within thirty days, or within forty-five days if only estimates were given and receipts follow. Smaller buildings are not covered by the Act, but a landlord must still return whatever is owed within a reasonable time. Chicago tenants get the stricter deadlines of the Residential Landlord and Tenant Ordinance.
Does an Illinois landlord have to pay interest on a security deposit?
Only for larger buildings. Under the Security Deposit Interest Act, 765 ILCS 715, a landlord of a building with twenty-five or more units must pay interest on a deposit held longer than six months, at a rate tied to the passbook savings rate of the largest Illinois commercial bank, set annually. Buildings under twenty-five units owe no interest under state law. Chicago has its own separate interest requirement under its ordinance, so a Chicago landlord should check the city rate.
What can an Illinois landlord deduct from a security deposit?
A landlord may deduct for unpaid rent, unpaid utilities the tenant owed, and the cost to repair damage beyond ordinary wear and tear. Deductions may not be taken for ordinary wear and tear, such as faded paint, lightly worn carpet, or small nail holes. Under the Security Deposit Return Act, a landlord in a five-or-more-unit building who deducts for damage must back each charge with an itemized statement and paid receipts or estimates.
What is the penalty if an Illinois landlord wrongfully keeps a deposit?
Under the Security Deposit Return Act, 765 ILCS 710, a landlord of a five-or-more-unit building who refuses to supply the required itemized statement, or supplies it in bad faith, and fails to return the deposit due is liable for damages equal to twice the amount of the security deposit, plus court costs and reasonable attorney’s fees. Chicago’s ordinance carries a similar two-times penalty plus interest and fees for covered units.
Can an Illinois landlord charge a non-refundable deposit or fee?
State law does not broadly prohibit non-refundable fees the way some states do, so a lease may include a genuine non-refundable fee, such as a move-in or pet fee, if it is clearly labeled and not simply a disguised deposit. Money truly collected as a security deposit remains refundable and subject to the return rules. Chicago’s ordinance limits non-refundable fees more tightly, so a Chicago landlord should confirm what is allowed before charging one.
Do the Illinois security deposit Acts apply to every rental?
No. The Security Deposit Return Act, 765 ILCS 710, applies only to buildings with five or more units, and the Security Deposit Interest Act, 765 ILCS 715, applies only to buildings with twenty-five or more units. A landlord renting out a single house or a small two-flat is generally outside both Acts, though a written lease and general contract and property law still govern, and any applicable local ordinance controls. Always check whether a city ordinance covers the unit.
How are Chicago security deposit rules different?
Chicago’s Residential Landlord and Tenant Ordinance is far stricter than state law and covers most rentals in the city, with a narrow exemption for owner-occupied buildings of six or fewer units. It requires the landlord to pay annual interest at a city-set rate, hold the deposit in a separate Illinois account, give a written receipt, deliver an itemized statement of damages within thirty days, return the deposit within forty-five days, and it imposes a penalty of two times the deposit plus interest and attorney’s fees for violations. Chicago tenants should follow the ordinance, not the statewide Acts.
Does an Illinois tenant have to give a forwarding address to get the deposit back?
A tenant is not required to provide a forwarding address, but doing so protects the tenant, because a landlord who has no address will typically mail the itemized statement and any refund to the last known address, which is often the rental unit itself. Leaving a clear forwarding address in writing at move-out is the surest way to receive the statement and refund promptly and to start any dispute on solid footing.
Where does an Illinois tenant sue over a withheld deposit?
Most Illinois deposit disputes are filed in small claims court, which handles claims up to ten thousand dollars and is designed to be used without a lawyer. That limit comfortably covers a deposit plus the statutory two-times multiplier in most cases. A tenant should bring the lease, the move-in and move-out documentation, the itemized statement, and proof of what was paid. Verify the current small claims limit, which can change.
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