Security Deposit Law
What Illinois landlords must do with security deposits — the cap, interest, return deadline, account rules, and penalties — with citations to the statute itself.
Verified as of June 10, 2026
This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.
Deposit cap
No statewide cap — Illinois law does not limit how much you can charge.
Interest
Only for landlords with 25+ units in one building or a contiguous complex, on deposits held more than 6 months.
Return deadline
Itemize claimed damage within 30 days of move-out, or return the deposit in full within 45 days.
Neither the Security Deposit Return Act (765 ILCS 710) nor the Security Deposit Interest Act (765 ILCS 715) limits the amount of a residential security deposit; they regulate return procedures and interest, not the amount collected. Chicago and suburban Cook County add handling rules by ordinance (see local overlays).
765 ILCS 710/1 (Security Deposit Return Act) · 765 ILCS 715/1 (Security Deposit Interest Act)
765 ILCS 715/1 requires a lessor of residential property 'containing 25 or more units in either a single building or a complex of buildings located on contiguous parcels' to pay interest, computed from the date of the deposit, 'on any deposit held by the lessor for more than 6 months' — a deposit held exactly six months earns no statutory interest. The rate equals what the largest Illinois commercial bank (by total assets, main banking premises in-state) paid on minimum-deposit passbook savings accounts as of December 31 of the year before the lease began. Under 715/2 you must pay accumulated interest of $5 or more within 30 days after each 12-month rental period, by cash or credit applied to rent due, 'except when the lessee is in default under the terms of the lease,' and you must pay all accrued unpaid interest, regardless of amount, when the tenancy ends.
To withhold for property damage you must furnish, within 30 days of the date the lessee vacated (or the date the right of possession ends, whichever is later), an itemized statement of damage with estimated or actual repair/replacement costs, attaching paid receipts — delivered personally, by postmarked mail to the last known address, or by email to a verified address the lessee provided. If you give estimates, paid receipts (or the 710/1(b) substitute when receipts are unobtainable through no fault of yours) are due within 30 more days. Without a compliant statement and receipts, the full deposit must be returned within 45 days of vacating; if the lessee fails to provide a mailing or email address, you are not liable for damages or penalties from that failure. Since January 1, 2024, this applies to ALL residential lessors — the old 5-or-more-units threshold was removed.
765 ILCS 710/1 (as amended by P.A. 103-224, eff. 1-1-24) · Illinois Public Act 103-0224 (eff. 1-1-2024)
No Illinois statute requires residential security deposits to be held in a separate or segregated account — neither the Return Act nor the Interest Act imposes one. Chicago is different: the city's Residential Landlord and Tenant Ordinance requires deposits to be held in a federally insured interest-bearing account at an Illinois financial institution, not commingled with the landlord's assets (see local overlays).
765 ILCS 710 and 765 ILCS 715 (no segregation requirement in either act) · City of Chicago, official RLTO summary (Mun. Code ch. 5-12-080), effective May 1, 2024
Under 765 ILCS 710/1(c), if a circuit court finds the lessor refused to supply the itemized statement (or supplied it in bad faith) and failed or refused to return the deposit due within the time limits, the lessor is liable for twice the security deposit due plus court costs and reasonable attorney's fees. Under 765 ILCS 715/2, a lessor who willfully fails or refuses to pay required interest is liable for an amount equal to the security deposit plus court costs and reasonable attorney's fees.
Chicago: the Residential Landlord and Tenant Ordinance (Mun. Code ch. 5-12-080 and 5-12-081, per the city's official RLTO summary effective May 1, 2024) requires a deposit receipt (electronic receipts allowed for electronic payments), a federally insured interest-bearing account at an Illinois financial institution with no commingling, written disclosure of the financial institution within 14 days of receipt, annual interest at the City Comptroller's published rate on deposits and prepaid rent held more than six months, a 30-day itemized damage statement, return within 45 days of vacating (7 days after notice of termination following a fire), and damages of two times the security deposit plus interest for violations of the specified deposit requirements (subject to a cure provision for deficient interest payments). The RLTO generally exempts owner-occupied buildings with six units or fewer. Suburban Cook County has its own Residential Tenant Landlord Ordinance with deposit provisions; we did not verify its specifics against the official county code, so consult the Cook County Code (ch. 42, art. VIII) directly for units in suburban Cook County.
You cannot withhold for property damage unless you furnish an itemized statement of damage with estimated or actual costs within 30 days of move-out (or the end of the right of possession, whichever is later); otherwise the full deposit is due back within 45 days. P.A. 103-224 (eff. 1-1-2024) removed the old 5-or-more-units threshold, so the Return Act covers single-family rentals and small buildings too.
765 ILCS 710/1(a); P.A. 103-0224 · Illinois Public Act 103-0224 (eff. 1-1-2024)
If the 30-day statement uses estimated costs, you must furnish paid receipts (or copies) within 30 days of that statement. If you cannot produce receipts through no fault of your own, 710/1(b) lets you substitute an itemized cost list, all other cost evidence you have, and a verified statement explaining why receipts are unavailable.
If a written lease specifies the cost for cleaning, repair, or replacement of a component, you may withhold the specified dollar amount — but those costs must be for damage beyond normal wear and tear and reasonable to restore the premises to its condition at lease start, and your itemized statement must reference the lease amount and attach the applicable lease portion. You may also include the reasonable cost of your own labor for repairs you perform yourself.
Lessors of residential property containing 25 or more units in a single building or contiguous complex owe interest, computed from the deposit date, on any deposit held more than 6 months, at the largest in-state commercial bank's minimum-deposit passbook savings rate as of December 31 of the year before the lease began. Public-housing deposits are excluded.
Within 30 days after the end of each 12-month rental period, pay any interest that has accumulated to $5 or more, by cash or a credit applied to rent due, except when the lessee is in default under the lease. All accrued unpaid interest, regardless of amount, is due when the tenancy terminates; willful failure costs you an amount equal to the deposit plus costs and fees.
Without a compliant statement and receipts you must return the deposit in full within 45 days, and a court finding of refusal or bad faith plus late return makes you liable for twice the deposit due, court costs, and reasonable attorney's fees (765 ILCS 710/1(c)).
That threshold was struck from 765 ILCS 710/1 by P.A. 103-224, effective January 1, 2024 — the itemization and 45-day return rules now bind every residential lessor in Illinois, including single-family and small-portfolio landlords.
Illinois Public Act 103-0224 (eff. 1-1-2024) · 765 ILCS 710/1 (current text, no unit threshold)
Interest is owed on any deposit held more than 6 months, computed from the date of the deposit. Willful failure to pay makes you liable for an amount equal to the deposit plus court costs and attorney's fees — though the annual payment duty is suspended while the lessee is in default under the lease, and amounts under $5 can wait until they accumulate or the tenancy ends.
Chicago's RLTO (Mun. Code ch. 5-12-080/081) adds a deposit receipt, a segregated federally insured interest-bearing Illinois account with no commingling, written disclosure of the bank within 14 days, annual interest at the City Comptroller's rate on deposits held more than six months, and damages of two times the deposit plus interest for violations. Owner-occupied buildings with six units or fewer are generally exempt from the RLTO.
City of Chicago, official RLTO summary (Mun. Code ch. 5-12-080, 5-12-081), effective May 1, 2024 · City of Chicago, Residential Landlord and Tenant Ordinance page
If you claim property damage, you must send an itemized statement with costs within 30 days of the tenant vacating (or the end of their right of possession, whichever is later), with paid receipts within 30 more days. If you don't provide a compliant statement and receipts, the full deposit is due back within 45 days of vacating (765 ILCS 710/1).
Only landlords of residential property containing 25 or more units in a single building or contiguous complex, and only on deposits held more than 6 months — a deposit held exactly six months earns no statutory interest. The rate is the largest Illinois commercial bank's minimum-deposit passbook savings rate as of December 31 before the lease began, and accrued interest of $5 or more is paid within 30 days after each 12-month period, except when the tenant is in default under the lease (765 ILCS 715). Chicago landlords owe interest under the RLTO regardless of building size unless exempt.
No. Even lease-specified cleaning or repair charges may only be withheld for damage beyond normal wear and tear, must be reasonable to restore the unit to its move-in condition, and must appear in the 30-day itemized statement with the lease provision attached (765 ILCS 710/1(a)).
If a circuit court finds you refused to supply the required itemized statement or supplied it in bad faith, and failed to return the deposit due on time, you owe twice the security deposit due plus court costs and reasonable attorney's fees (765 ILCS 710/1(c)). Willfully skipping required interest separately costs an amount equal to the deposit plus costs and fees (765 ILCS 715/2), and Chicago's RLTO imposes its own two-times-deposit damages.
No — Illinois state law sets no cap on the deposit amount. The statutes regulate how you return the deposit and when you owe interest, not how much you collect, though market practice and local ordinances (especially Chicago's RLTO handling rules) still shape what's workable.
Yes, as of January 1, 2024. Public Act 103-224 struck the old 'containing 5 or more units' threshold from 765 ILCS 710/1, so the 30-day itemization and 45-day return requirements now apply to every residential lessor in Illinois, including single-family rentals.
This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.
Statute facts on this page were verified against the cited official sources on June 10, 2026.
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