Illinois Security Deposit Rules for Renters

If you’re renting a home or apartment in Illinois, it’s important to understand the rules your landlord must follow for security deposits. Security deposits are meant to protect against damage or unpaid rent, but there are clear laws in Illinois about how much your landlord can collect, when deposits must be returned, and what happens if your landlord doesn’t follow the rules. Knowing these basics can help you avoid confusion and get your deposit back quickly when you move out.

Security Deposit Limits in Illinois

Illinois state law does not set a maximum security deposit amount for most rentals. However, landlords commonly charge the equivalent of one or two months’ rent. If you rent in Chicago, local rules may have additional requirements. Always check your local ordinances for specific limits.

• No statewide dollar or percentage cap in Illinois for standard residential leases
• Some cities like Chicago may apply extra requirements under municipal codes
• Deposits must not be used for routine wear and tear—only damage or unpaid rent

Rules for Holding and Returning Security Deposits

Illinois law protects renters by requiring landlords to handle security deposits carefully and return them within a set time after you move out. Strict requirements apply if your building contains five or more units.

• For buildings with 5 or more units: Landlords must pay interest annually on security deposits and keep funds in a federally insured account.
• Return deadline: Landlords must return the deposit (and any owed interest) within 45 days after you move out and return the keys.
• If deductions are made (for damages or unpaid rent): Landlords must provide an itemized statement of damages, including receipts or estimates, within 30 days of move-out.
• If the landlord doesn’t return your deposit or the itemized list on time, they could owe you the deposit back plus double damages.

For smaller buildings (4 units or less), some rules differ. For example, landlords are not required to pay interest on security deposits for these smaller buildings, but they must still return your deposit within 45 days or provide the itemized deductions within 30 days if making deductions.

What Landlords Can Deduct

• Unpaid rent
• Repairing damage beyond normal wear and tear
• Cleaning needed to return unit to original condition (not including normal use)

Official Forms and How to Use Them

• Security Deposit Demand Letter (No official state form, but recommended):
  • Use this if your landlord does not return your deposit on time or fails to provide an itemized list of deductions.
  • Include your new address, move-out date, and specific request for the security deposit plus any penalties if overdue.
  • Sample demand letter templates are available from the Illinois Attorney General’s Tenant Rights page.
• Complaint Form – Illinois Attorney General
  • File a formal complaint if your landlord still refuses to return your deposit.
  • Download the Illinois Consumer Complaint Form (PDF).
  • Submit it online or by mail, following the instructions provided.

While there’s no single "security deposit" official form, these documents help resolve disputes and start a formal complaint process if needed.

Which Tribunal Handles Disputes?

Security deposit disputes in Illinois are typically handled in your local county circuit court. To learn more or to file a small claims case, visit your Illinois Circuit Court location.

• For complaints in Chicago, the City of Chicago Department of Housing offers local mediation and complaint resources.

The relevant law is the Illinois Security Deposit Return Act and, for Chicago, the Chicago Residential Landlord and Tenant Ordinance (RLTO).

FAQ: Illinois Security Deposits

1. Can a landlord charge more than one month’s rent as a security deposit in Illinois?
   Yes, unless local ordinances (such as some in Chicago) set a limit, Illinois has no statewide cap on security deposit amounts.
2. How long does my landlord have to return my security deposit?
   In Illinois, your deposit must be returned within 45 days after you move out. If deductions are made, an itemized statement is required within 30 days.
3. Do I get interest on my security deposit?
   If you live in a building with 5 or more units, your landlord must pay annual interest on your security deposit. This does not apply to smaller buildings.
4. What if my landlord doesn’t return my security deposit?
   You can send a demand letter and, if unresolved, file a complaint with the Illinois Attorney General or take your landlord to small claims court for double damages.
5. What can my security deposit be used for?
   It can be used to cover unpaid rent, repair damages beyond normal wear and tear, or extra cleaning. It cannot be withheld for normal wear.

Key Takeaways for Illinois Renters

• Illinois law requires most landlords to return security deposits within 45 days.
• Always request an itemized list if deductions are made. You have the right to dispute unfair charges.
• If you don’t get your deposit back, official complaint forms and legal action are available to you.

Knowing your rights helps protect your money and ensures fair treatment when moving out.

Need Help? Resources for Renters

• Illinois Attorney General Tenant Rights: Fact sheets, complaint process, and sample letters
• Illinois Circuit Courts Directory: Find your local court for filing small claims cases
• Chicago Department of Housing: Information and tools for Chicago renters
• Illinois Legal Assistance: Free or low-cost legal aid services for renters

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1. Illinois Security Deposit Return Act: Read the Illinois Security Deposit Return Act
2. Chicago Residential Landlord and Tenant Ordinance (RLTO): View RLTO Ordinance Text
3. Illinois Attorney General Tenant Rights: Housing Rights for Illinois Consumers
4. Illinois Court System: Find your Circuit Court

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