Illinois security deposit and move-in inspection rules

How much can the deposit be?

No state statute. Neither the Security Deposit Return Act (765 ILCS 710) nor the Security Deposit Interest Act (765 ILCS 715) sets a maximum amount for a residential security deposit. Some cities, including Chicago, have their own deposit rules.

Where the deposit must be kept

No state statute. The two Illinois deposit Acts do not require a separate account, an Illinois bank, or a notice saying where the deposit is held. They only require interest in larger buildings (see Interest below).

Move-in inspection and photos

No state statute. The Illinois deposit Acts have no move-in inspection, condition report or inventory requirement.

When the deposit must be returned

To keep any part of the deposit for property damage, the landlord must send an itemized statement of the damage within 30 days after the tenant moved out or the tenant's right of possession ended, whichever is later. If no statement and receipts are sent as required, the landlord must return the full deposit within 45 days after the tenant moved out.

“may not withhold any part of that deposit as reimbursement for property damage unless the lessor has, within 30 days of the date that the lessee vacated the leased premises or within 30 days of the date the lessee's right of possession ends, whichever is later, furnished to the lessee”

“If no such statement and receipts, or copies thereof, are furnished to the lessee as required by this Section, the lessor shall return the security deposit in full within 45 days of the date that the lessee vacated the premises”

What the itemized statement must include

The statement must list each item of damage with its estimated or actual repair or replacement cost, with the paid receipts (or copies) attached. If the landlord gives estimates, the paid receipts must follow within 30 days of the statement. A landlord who does the work personally may charge the reasonable cost of that labor. If, through no fault of the landlord, receipts cannot be produced, the landlord must give an itemized cost list, any other evidence of cost, and a verified statement explaining why (§ 1(b)).

“an itemized statement of the damage allegedly caused to the leased premises and the estimated or actual cost for repairing or replacing each item on that statement, attaching the paid receipts, or copies thereof, for the repair or replacement.”

“If estimated cost is given, the lessor shall furnish to the lessee, delivered in person or by postmarked mail directed to the last known address of the lessee or another address provided by the lessee, paid receipts, or copies thereof, within 30 days from the date the statement showing estimated cost was furnished to the lessee, as required by this Section.”

What can and cannot be deducted

The Act covers deposits held to secure rent or to pay for damage to the premises. If a written lease sets a price for cleaning, repairing or replacing a specific component, the landlord may withhold that amount, but only for damage beyond normal wear and tear, the amount must be reasonable to restore the unit to its move-in condition, and the statement must cite the lease amount and include a copy of that part of the lease. All other deductions follow the itemized-statement rules above.

“Costs specified in a written lease shall be for damage beyond normal wear and tear and reasonable to restore the leased premises to the same condition as at the time the lease began.”

How the deposit is returned

The damage statement goes by personal delivery, postmarked mail to the tenant's last known address, or e-mail to a verified e-mail address the tenant provided. The refund goes in person or by postmarked mail to the last known address or another address the tenant gave. A landlord is not liable for damages or penalties caused by the tenant's failure to give a mailing or e-mail address.

“If the lessee fails to provide the lessor with a mailing address or electronic mail address, the lessor shall not be held liable for any damages or penalties as a result of the lessee's failure to provide an address.”

Interest on the deposit

Interest is required only for residential property with 25 or more units in one building or a complex on contiguous parcels, on a deposit held more than 6 months. The rate is the one the largest commercial bank headquartered in Illinois paid on minimum-deposit passbook savings accounts on December 31 of the year before the lease began. Within 30 days after each 12-month rental period, the landlord must pay interest of $5 or more in cash or as a rent credit (not while the tenant is in default), and all unpaid interest when the tenancy ends. The Act does not apply to public housing (§ 3).

“A lessor of residential real property, containing 25 or more units in either a single building or a complex of buildings located on contiguous parcels of real property, who receives a security deposit from a lessee to secure the payment of rent or compensation for damage to property shall pay interest to the lessee”

“The lessor shall, within 30 days after the end of each 12 month rental period, pay to the lessee any interest that has accumulated to an amount of $5 or more, by cash or credit to be applied to rent due, except when the lessee is in default under the terms of the lease.”

Penalties for keeping a deposit wrongly

If a court finds the landlord refused to give the itemized statement, or gave it in bad faith, and did not return the deposit on time, the landlord owes twice the deposit due plus court costs and reasonable attorney's fees. Separately, a landlord a court finds willfully failed to pay the interest required by 765 ILCS 715 owes an amount equal to the deposit, plus court costs and reasonable attorney's fees.

“the lessor shall be liable for an amount equal to twice the amount of the security deposit due, together with court costs and reasonable attorney's fees.”

“A lessor who willfully fails or refuses to pay the interest required by this Act shall, upon a finding by a circuit court that he has willfully failed or refused to pay, be liable for an amount equal to the amount of the security deposit, together with court costs and reasonable attorneys fees.”

If the property is sold

When the property is sold, leased, or otherwise transferred (other than to a lienholder), the new owner is liable for the deposit, including statutory interest, and for prepaid rent; the old owner stays jointly and severally liable. After a foreclosure sale, a holder or purchaser who receives the deposits must post a written notice on each unit's main entrance within 21 days (§ 1.2).

“the transferee of such property shall be liable to that lessee for any security deposit, including statutory interest, or prepaid rent which the lessee has paid to the transferor. Transferor shall remain jointly and severally liable with the transferee to the lessee for such security deposit or prepaid rent.”