Overview
Illinois security deposit laws are governed by a combination of state statutes and local ordinances, with cities like Chicago and Evanston having stricter rules. At the state level, 765 ILCS 710 outlines basic requirements, but local laws may impose additional obligations on landlords.
The law sets timelines for returning deposits and requires landlords to provide itemized deductions. In some areas, landlords must also pay interest on deposits. Failure to comply can lead to penalties and forfeiture of the right to retain any part of the deposit.
This guide covers:
How much landlords can charge
Requirements for holding and returning deposits
Allowable deductions and interest rules
Penalties for non-compliance
Related Statute: 765 ILCS 710
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Illinois does not impose a statewide limit on the amount a landlord may charge for a security deposit. The amount is typically determined by the lease agreement.
Interest requirements: In municipalities with over 25,000 residents (e.g., Chicago, Evanston), landlords are often required to pay annual interest on deposits held for more than six months. The applicable interest rate is set by the municipality.
Storage requirements: While there is no state-mandated requirement to hold deposits in a separate account, some local ordinances (like Chicago’s RLTO) do require this.
Law Reference: 765 ILCS 715 (Interest on Security Deposits Act), plus local ordinances
2. Security Deposit Returns & Allowable Deductions
Return deadline: Landlords must return the deposit within 45 days of the tenant vacating the unit. If any portion is withheld, the landlord must provide an itemized list of damages within 30 days.
Permissible deductions: Deductions may be made for unpaid rent, repair of damages beyond normal wear and tear, and other lease violations.
Itemized statement required: If deductions are made, an itemized statement and receipts or estimates must be provided within 30 days of move-out.
Law Reference: 765 ILCS 710/1
3. Penalties for Mishandling Security Deposits
Forfeiture of claims: If a landlord fails to return the deposit or provide an itemized statement within the required timeframe, they may forfeit the right to retain any portion of the deposit.
Tenant remedies: Tenants may sue for twice the amount of the deposit, plus court costs and attorney fees, if the landlord acted in bad faith or failed to comply with the law.
Local penalties: In Chicago, landlords who violate the Residential Landlord and Tenant Ordinance (RLTO) may face additional fines and triple damages.
Law Reference: 765 ILCS 710/1, Chicago RLTO § 5-12-080
Key Takeaways
Illinois does not set a statewide limit on security deposit amounts, but local laws may apply.
Deposits must be returned within 45 days, and itemized deductions must be sent within 30 days.
Landlords in some cities must pay interest on deposits held longer than six months.
Failure to comply with state or local laws can result in forfeiture of the deposit and additional penalties.
Landlords and tenants alike should review both state law and local ordinances to ensure full compliance with Illinois deposit requirements.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
