Illinois Security Deposit Law

Maximum deposit

Illinois state law sets no maximum security deposit, but suburban Cook County caps deposits at 1.5 months' rent for covered units (765 ILCS 710; 765 ILCS 705). (765 ILCS 710 (Security Deposit Return Act — silent on amount), 765 ILCS 705 (Landlord and Tenant Act — silent on amount))

Return deadline

A landlord who keeps any part of a deposit for damage must send an itemized statement with receipts within 30 days after the tenant vacates (or possession ends, if later); otherwise the full deposit is due within 45 days after move-out (765 ILCS 710/1(a)). (765 ILCS 710/1(a), P.A. 103-224 (SB 1741), eff. 1-1-2024)

Itemized statement of deductions

To withhold any part of the deposit for damage, the landlord must deliver an itemized statement of damage and repair costs, with paid receipts or copies attached (or receipts within 30 days if estimates were given), within 30 days (765 ILCS 710/1(a)). (765 ILCS 710/1(a)-(b))

Interest on the deposit

Landlords with 25 or more units in a building or contiguous complex must pay interest on deposits held over 6 months, paying accrued interest of $5 or more within 30 days after each 12-month rental period and all remaining interest when the tenancy ends (765 ILCS 715/1-2). (765 ILCS 715/1, 765 ILCS 715/2, 765 ILCS 715/3)

Only for lessors of 25+ units in a single building or complex on contiguous parcels, on deposits held more than 6 months; rate = minimum-deposit passbook savings rate paid by the largest Illinois-headquartered commercial bank as of Dec. 31 of the calendar year before the rental agreement began; within 30 days after each 12-month rental period, interest accrued to $5 or more must be paid (cash or rent credit) unless the tenant is in default, and all accrued interest regardless of amount at termination. Not applicable to public housing.

Penalty for wrongful withholding

A landlord who refuses to supply the itemized statement, or supplies it in bad faith, and fails to return the deposit on time owes twice the deposit due plus court costs and attorney's fees (765 ILCS 710/1(c)). (765 ILCS 710/1(c), 765 ILCS 715/2)

Where the deposit is held

Illinois state law does not require a separate or escrow account for security deposits; the Security Deposit Return Act and the Security Deposit Interest Act are silent on where the money is held (765 ILCS 710; 765 ILCS 715). (765 ILCS 710, 765 ILCS 715)

Receipt or written notice of the deposit

No statewide Illinois law requires a deposit receipt or a notice naming the bank where the deposit is kept (765 ILCS 710; 765 ILCS 715). (765 ILCS 710, 765 ILCS 715)

Move-in condition checklist

Illinois does not require a move-in checklist or inspection before deposit deductions; the landlord's burden is an itemized damage statement with receipts after move-out (765 ILCS 710/1). (765 ILCS 710/1)

Pet deposits

Illinois deposit statutes contain no pet-specific rule, and with no state cap on deposits a pet deposit is simply part of the security deposit governed by the return and interest acts (765 ILCS 710; 765 ILCS 715). (765 ILCS 710, 765 ILCS 715)

Nonrefundable fees

Illinois currently has no statewide limit on nonrefundable move-in fees, but from January 1, 2027 non-optional fees must appear on page one of the lease and many 'junk fees' are banned (765 ILCS 710; 765 ILCS 705/35). (765 ILCS 710, 765 ILCS 705/35 (eff. 2027-01-01))

Small-landlord exemptions

Only Illinois landlords with 25 or more units in one building or contiguous complex owe interest on deposits; smaller landlords are exempt from the interest rule, while the 30/45-day return rules now apply to all residential landlords (765 ILCS 715/1; 765 ILCS 710/1). (765 ILCS 715/1, 765 ILCS 710/1)

Interest is owed only on deposits held more than 6 months; the Interest Act does not apply to public housing (715/3). The Return Act's former 5-unit threshold was removed by P.A. 103-224 effective 2024-01-01.

Deposit alternatives and installments

Illinois has no statute regulating deposit-alternative products, surety bonds or installment payment of security deposits (765 ILCS 710; 765 ILCS 715). (765 ILCS 710, 765 ILCS 715)