Deposit laws by state · Illinois
Illinois security deposit laws.
Illinois law applies in tiers: 5+ unit buildings are covered by the Security Deposit Return Act (30 days with itemization, 45 without), and Chicago properties are governed by the much stricter RLTO. Smaller buildings outside Chicago have weaker statutory protection but still face common-law accounting requirements.
Key rules
What Illinois landlords need to do.
- 1.
5+ unit buildings: itemized statement with paid receipts due within 30 days; full refund due within 45 days if no statement.
- 2.
Chicago RLTO: 30-day deadline plus interest accrues from day 1; severe penalties for non-compliance (2× deposit + fees).
- 3.
Statewide: no maximum deposit, but Chicago caps deposits + non-refundable fees together.
- 4.
25+ unit buildings statewide: deposits must be in a separate account; interest accrues after 6 months at the lesser of state savings rate or actual.
- 5.
Receipts (not just estimates) are required for itemized deductions in 5+ unit buildings.
Common pitfalls
Where Illinois landlords lose deposit cases.
Sending estimates instead of paid receipts in 5+ unit buildings — the statute requires actual receipts within 30 days.
Chicago landlords missing the deposit-receipt notice — must give a written receipt with the bank name within 14 days.
Treating the 30-day clock as flexible — Illinois courts strictly enforce it.
Statute
Illinois Security Deposit Return Act (765 ILCS 710); Chicago RLTO for Chicago properties
Read the statute on the Illinois legislature site →This page is a landlord-oriented summary, not legal advice. Local ordinances may impose stricter rules than state law. Consult a Illinois attorney before acting on a contested deposit dispute.
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Start your first report →Or use the free templateCommon questions
Illinois deposit FAQ.
- How long does a landlord have to return the security deposit in Illinois?
- 30 (with itemization) / 45 (without) after move-out, per Illinois Security Deposit Return Act (765 ILCS 710); Chicago RLTO for Chicago properties. The clock typically starts when the tenant gives a forwarding address; check the statute for state-specific triggers.
- What's the maximum security deposit allowed in Illinois?
- No statewide limit (Chicago has rules). Charging above the cap is unenforceable and exposes the landlord to penalties.
- What's the penalty for wrongfully withholding a deposit in Illinois?
- Twice the wrongfully withheld amount plus court costs and attorney fees for buildings of 5+ units (Security Deposit Return Act).
- Does Illinois require an itemized deduction statement?
- Yes. Illinois requires an itemized written statement listing each deduction with its cost. Sending a refund without itemization (when claiming any deductions) commonly triggers the wrongful-withholding penalty.
- Does Illinois require a pre-move-out inspection?
- Illinois does not require a pre-move-out inspection. Offering one anyway is good practice — it reduces dispute risk by giving the tenant a chance to remedy issues.