Illinois Security Deposit Laws: Tenant Rights Explained

If you are renting a home or apartment in Illinois, it's important to understand your rights when it comes to security deposits. Illinois law sets specific rules that landlords must follow regarding the amount, handling, return, and deductions from your security deposit. Knowing these protections can help you avoid disputes and better advocate for yourself if issues arise.

What Is a Security Deposit?

A security deposit is money you pay your landlord before moving in, intended to cover damage beyond normal wear and tear or other lease violations. Landlords in Illinois often require this deposit, but state law limits what they can do with your money—helping protect renters from unfair losses.

Main Rules for Security Deposits in Illinois

State law covers many aspects of security deposits. Key points include:

• No Limit on Amount: There is no statewide cap, but many cities may have their own limits. Always check local ordinances.
• Receipts and Written Notice: Landlords must give you a receipt stating the amount received. Always keep a copy for your records.
• Separate Bank Account for Deposits: If a landlord owns or manages 25 or more units, they must hold security deposits in a separate federally insured account and disclose its location in writing.
• Interest Requirements: For buildings with 25 or more units, deposits must earn interest if held more than 6 months. The landlord must pay you this interest each year. Check the current Illinois security deposit interest rate here.
• Itemized Statement of Deductions: If any money is kept for damages (not normal wear and tear), the landlord must provide an itemized list and copies of the paid bills or estimates within 30 days of move-out.
• Return Deadline: Your deposit must be returned within 45 days of moving out (unless deductions apply).

These protections help ensure landlords treat your money fairly and return what is owed when you move.

When Can Landlords Keep Your Security Deposit?

Illinois law gives landlords the right to withhold some or all of your deposit for the following reasons:

• Unpaid rent
• Repair of damages beyond normal wear and tear
• Other lease violations or outstanding fees (if outlined in your lease)

But they cannot deduct for normal wear (like minor carpet fading, or small nail holes from hanging pictures).

How to Get Your Security Deposit Back

If you are moving out, here are steps you can take to maximize your chances of getting your full deposit returned:

• Give your landlord proper written notice before moving out according to your lease agreement.
• Request a move-out inspection (if available), and keep photos of the condition of the unit.
• Return all keys and provide your forwarding address in writing.
• Keep copies of your original security deposit payment, receipts, and any move-in checklists or photos.

Official Forms for Renters

• Illinois Security Deposit Itemization Form (no official state-wide form): While Illinois does not require a specific state government form, many localities and organizations provide helpful templates. For example, if a landlord withholds part of your deposit, they must provide an itemized list (as required under the Illinois Security Deposit Return Act).
  How it's used: You can request this itemized statement from your landlord if they do not provide it, or use templates to track deductions on your own.
• Forwarding Address Notice: There is no official Illinois form, but you should always provide your forwarding address in writing to your landlord.
  How it's used: Write a simple letter with your move-out date, new address, and request for the return of your deposit. Send it by certified mail for proof of delivery.
• Security Deposit Complaint: If you believe your landlord did not follow Illinois law, renters in Chicago may use the Chicago Department of Housing's complaint process. Outside Chicago, you may file in small claims court using forms from your local circuit court or get legal help via the Illinois Attorney General's office.

Relevant Legislation and Tribunals

• Illinois Security Deposit Return Act — Main state law governing residential security deposits.
• Chicago Residential Landlord and Tenant Ordinance (RLTO) — Additional protections for renters within the City of Chicago.

Unlike some states, Illinois does not have a dedicated tribunal for residential tenancy disputes. Most disputes are resolved in local Circuit Courts. For Chicago, the Chicago Department of Housing oversees tenant-landlord issues.

If your landlord doesn't return your deposit within 45 days, or fails to provide an itemized list of deductions, you may be entitled to recover damages in court. Document everything, and consider seeking legal assistance if needed.

FAQ: Illinois Security Deposit Laws

1. How long does a landlord have to return my security deposit in Illinois?
   Landlords must return the deposit within 45 days after you move out. If they make deductions, an itemized list must be provided within 30 days.
2. Can a landlord keep my entire deposit for cleaning?
   No, landlords cannot withhold the entire deposit for cleaning unless there is significant damage or cleaning required beyond normal wear and tear.
3. What can I do if my landlord doesn’t return my security deposit?
   You can send a written demand letter, and if there’s still no response, file a claim in Small Claims Court or, in Chicago, contact the Department of Housing.
4. Do security deposits have to earn interest in Illinois?
   Yes, but only if your landlord owns 25 units or more and keeps your deposit for at least 6 months. In this case, they must pay annual interest based on the state’s published rate.
5. What counts as ‘normal wear and tear’?
   This includes minor issues from everyday use, like slight carpet wear, faded paint, or small nail holes—not major damage.

Conclusion: Key Takeaways for Illinois Renters

• Security deposits are strictly regulated if your landlord owns 25+ units, with requirements for interest and separate accounts.
• Always request and keep written records, photos, and forwarding address proof.
• If your deposit isn’t returned on time, you can take legal steps to recover what you’re owed.

Understanding Illinois security deposit laws helps you protect your rights and your money throughout your tenancy.

Need Help? Resources for Renters

• Office of the Illinois Attorney General: Landlord/Tenant Rights — Guidance and complaint forms for renters statewide
• Chicago Department of Housing (DOH) — Help for Chicago renters and complaint process
• Illinois Legal Aid Online: Security Deposits — Step-by-step guides and legal help finding services
• Cook County Small Claims Court — Where to file for return of a deposit if needed
• Illinois Security Deposit Return Act — Full text of the state law

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1. Illinois Security Deposit Return Act, 750 ILCS 710
2. Chicago Residential Landlord and Tenant Ordinance, Chapter 5-12
3. Illinois Attorney General, Landlord / Tenant Rights
4. Cook County Circuit Court, Small Claims
5. Chicago Department of Housing, Renter Services

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