Illinois handles deposits through two state statutes, the Security Deposit Return Act and the Security Deposit Interest Act, and Chicago adds its own Residential Landlord and Tenant Ordinance (RLTO). Which rules apply depends on the size of the building and where it is. This guide is general information, not legal advice; check the current text of the statutes and the ordinance before relying on it.
| Rule | Illinois (5+ units) | Chicago (RLTO) |
|---|---|---|
| Itemised statement | Within 30 days of move-out, with receipts or estimates | Within 30 days of move-out |
| Return of the balance | Within 45 days of move-out | Within 45 days of move-out |
| Interest | Required for 25+ units when held 6+ months (765 ILCS 715) | Required on every deposit, at a rate the city sets each year |
| Penalty | Twice the deposit, plus costs and attorney’s fees | Twice the deposit, plus interest and attorney’s fees |
Who the Return Act covers
The Security Deposit Return Act, 765 ILCS 710, applies to landlords of residential buildings with five or more units. Landlords of smaller buildings outside Chicago are not covered by its deadlines, but a lease and general contract law still govern the deposit, and many landlords follow the same timeline as good practice.
30 days to itemise, 45 days to return
A covered landlord who intends to deduct for damage must give the tenant, within 30 days of move-out, an itemised statement of the damage and the estimated or actual cost of repair, with copies of paid receipts or, if the work is not done, an estimate followed by receipts within 30 days of completion. The balance of the deposit must be returned within 45 days of move-out. Deductions cannot cover normal wear and tear.
A landlord who fails to comply, or who refuses in bad faith to return a deposit, can be ordered to pay twice the amount of the deposit, plus court costs and reasonable attorney’s fees.
Interest on deposits
Under the Security Deposit Interest Act, 765 ILCS 715, a landlord of a building or complex with 25 or more units who holds a deposit for more than six months must pay interest on it, at a rate tied to the rate paid on savings accounts by the state’s largest commercial bank. Interest is paid or credited to the tenant each year.
Chicago: the RLTO
In Chicago the RLTO applies to most rental units, regardless of building size, apart from owner-occupied buildings with six or fewer units. It requires a receipt for the deposit with the name of the bank where it is held, interest on every deposit at a rate the city publishes each year, an itemised statement within 30 days of move-out and the balance within 45 days. Violations can cost twice the deposit plus interest and attorney’s fees, and the RLTO is enforced strictly.
A checklist
Check which rules apply: the Return Act for five or more units, the Interest Act for 25 or more, the RLTO in Chicago. Record the unit’s condition at move-in with dated photos. After move-out, send the itemised statement with receipts within 30 days and the balance within 45. Keep interest calculations and payments on the tenant record. The move-in and move-out checklist supports the statement, and security deposit management covers the process. For other states, see security deposit return deadlines by state.
This article is general information, not legal advice. Rental rules change and vary by jurisdiction; check the current law or consult a local lawyer before acting on it.
Common questions
How long does an Illinois landlord have to return a security deposit?
For buildings with five or more units, an itemised statement of deductions within 30 days of move-out and the balance within 45 days.
Do Illinois landlords have to pay interest on deposits?
Landlords with 25 or more units who hold a deposit for over six months must pay interest. In Chicago, the RLTO requires interest on nearly every deposit.
What is the penalty for not returning a deposit in Illinois?
Twice the amount of the deposit, plus court costs and reasonable attorney’s fees.
Does the Illinois Security Deposit Return Act apply to small landlords?
Its deadlines apply to buildings with five or more units. In Chicago, the RLTO covers most units regardless of building size.
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