What are the security deposit rules in Illinois?
Illinois sets no cap on security deposits, and in buildings of five or more units the landlord must send an itemized damage statement with receipts within 30 days of move-out and return the balance — or, if no valid statement is sent, the full deposit — within 45 days.
Bad-faith withholding costs the landlord double the deposit plus court costs and attorney's fees. In buildings of 25 or more units, deposits held over six months earn interest at the state-published passbook rate, payable annually, with willful nonpayment penalized at the full deposit amount plus fees. The state statutes do not reach most small landlords: below five units the Return Act doesn't apply at all, leaving disputes to the lease and common law — though Chicago and suburban Cook County impose much stricter local ordinances. On sale of the building, the deposit obligation transfers to the new owner.
Illinois security deposits at a glance
| Maximum deposit | No statutory cap |
|---|---|
| Return deadline | 45 days |
| Deadline conditions | Applies to lessors of residential property containing 5 or more units. If no deductions are claimed (or the required statement is not furnished), the full deposit must be returned within 45 days of the date the lessee vacated. To withhold for property damage, the lessor must furnish an itemized statement of damage within 30 days of vacatur, with paid receipts attached or, if repairs aren't complete, estimates followed by paid receipts within 30 additional days. Delivery may be personal, by postmarked mail to the last known address, or by e-mail to a verified address. |
| Itemization required | Yes |
| Itemization rules | Itemized statement of alleged damage with estimated or actual repair/replacement cost for each item, plus paid receipts (or estimates followed by receipts within 30 days). Deductions must be for damage beyond normal wear and tear and reasonable to restore the premises to move-in condition; amounts tied to lease-specified costs must reference the lease and attach the applicable portion. 5+ unit buildings only. |
| Separate account required | No |
| Interest owed to tenant | Yes |
| Account & interest rules | Only for residential property with 25 or more units (Security Deposit Interest Act, 765 ILCS 715): deposits held more than 6 months earn interest at the rate paid on minimum-deposit passbook savings by the state's largest commercial bank (rate published annually; tracked by IDFPR). Accumulated interest of $5 or more must be paid in cash or rent credit within 30 days after each 12-month rental period, and all accrued interest is due at termination. Willful failure to pay makes the lessor liable for the full amount of the deposit plus costs and attorney's fees. Below 25 units, state law requires no interest and no separate account (Chicago and Cook County impose stricter local rules, out of scope v1). |
| Pet deposits | No separate statutory category; no state cap applies to any deposit type. |
| Non-refundable fees allowed | Not addressed by statute |
| Penalty for violation | Under 765 ILCS 710/1(c), a lessor (5+ units) who in bad faith refuses to return the deposit, or who furnishes a statement in bad faith, is liable for damages equal to two times the security deposit, plus court costs and reasonable attorney's fees. Failing to furnish the 30-day statement forfeits the right to withhold and triggers the 45-day full-refund duty. |
| Tenant forwarding-address duty | Not addressed by statute |
Notes and caveats
Statute citations
- 765 ILCS 710/1 (Security Deposit Return Act) (a)-(c) Official source
- 765 ILCS 710/1.2 (deposit transfer on sale) Official source
- 765 ILCS 715/1-2 (Security Deposit Interest Act) Official source
How this record was verified: Web verification against ilga.gov (official Illinois General Assembly ILCS database) for the Security Deposit Return Act (765 ILCS 710), Security Deposit Interest Act (765 ILCS 715), Landlord and Tenant Act (765 ILCS 705), Rent Control Preemption Act (50 ILCS 825), and 735 ILCS 5/9-207, with statute text confirmed via current-year compiled-statute mirrors of the ilga.gov database and IDFPR official guidance on deposit interest rates.