Illinois Security Deposit Law: Limits, Deadlines, and Penalties
What Illinois landlords can charge, when deposits must be returned, and what it costs to get it wrong. Last reviewed 2026-08-12.
How much can a landlord charge in Illinois?
Illinois sets no statewide cap on deposit amounts. Suburban Cook County's Residential Tenant Landlord Ordinance caps deposits at 1.5 months' rent, while Chicago's RLTO imposes strict handling rules but no cap on the amount.
No state statute — pet deposits are permitted, treated as part of the security deposit, and count toward Cook County's 1.5-month cap where that ordinance applies.
When must the deposit be returned?
Both deadlines run from the date the tenant vacates (or the date the right of possession ends, if later). A landlord claiming property damage must furnish the itemized statement with paid receipts within 30 days — estimated costs are allowed initially, with paid receipts to follow within 30 additional days. If no statement is provided, the full deposit is due within 45 days.
The itemized statement of damage must attach paid receipts (or copies) for repairs or replacement; if the landlord's own employees did the work, a certified statement of time and materials is required instead.
What happens if a landlord misses the deadline?
A landlord who refuses to supply the itemized statement, supplies it in bad faith, and fails to return the deposit due is liable for twice the amount of the security deposit plus court costs and reasonable attorney's fees. Chicago's RLTO imposes its own two-times-deposit penalty for violations of its deposit rules.
Interest and holding requirements
State law (765 ILCS 715) requires interest only in buildings of 25 or more units, at the minimum passbook rate of the largest Illinois commercial bank (0.005% for 2026 leases), paid annually on deposits held more than six months. Chicago's RLTO separately requires nearly all covered landlords to pay interest at a city-set rate — 0.01% for 2026.
No statewide separate-account requirement. Chicago's RLTO requires deposits to be held in a federally insured, interest-bearing account at an Illinois financial institution, unmingled with the landlord's assets.
Recent changes to the law
Public Act 103-224 (effective January 1, 2024) extended the Security Deposit Return Act — previously limited to properties with five or more units — to all residential landlords, so every Illinois landlord now owes the 30-day itemization and 45-day refund regardless of portfolio size.
What Illinois landlords get wrong
Location controls everything in Illinois. Outside Chicago and Cook County, a small landlord faces only the 30/45-day return rules — which since 2024 apply regardless of building size. Inside Chicago, the RLTO adds a written deposit receipt, a separate interest-bearing Illinois account, annual interest payments, and near-strict liability of twice the deposit for even technical violations — though owner-occupied buildings of six or fewer units are exempt from the RLTO. Many Chicago landlords charge non-refundable move-in fees instead of deposits to avoid RLTO exposure.
The law itself
Frequently asked questions
How long does a landlord have to return a security deposit in Illinois?
Forty-five days after you move out. If the landlord deducts for damage, an itemized statement with paid receipts is due within 30 days of move-out; estimates may be used at first, with receipts following within 30 more days. Since January 1, 2024 these deadlines bind every residential landlord in Illinois, not just those with five or more units. Chicago's RLTO imposes the same 45-day return.
Do small landlords in Illinois have to pay interest on deposits?
Under state law, no — the Security Deposit Interest Act only covers buildings or complexes of 25 or more units, and the required rate is a nominal 0.005% for 2026. But in Chicago the RLTO requires interest at the city-set rate (0.01% for 2026) from covered landlords of all sizes, unless the building is owner-occupied with six or fewer units. Suburban Cook County's RTLO has similar interest rules.
What are the security deposit rules for Chicago landlords?
Chicago's RLTO is the strictest regime in the state: give a signed receipt when you take the deposit, hold it in a separate federally insured interest-bearing account at an Illinois bank, disclose the bank's name, pay interest annually, and return the deposit within 45 days. Violations trigger liability of twice the deposit plus attorney fees, and courts apply the ordinance strictly. Owner-occupied buildings with six or fewer units are exempt.
What happens if an Illinois landlord doesn't return the deposit or itemize deductions?
A landlord who withholds without supplying the itemized statement, or supplies it in bad faith, and misses the 45-day refund deadline is liable for twice the deposit plus court costs and reasonable attorney fees under the Security Deposit Return Act. Deductions unsupported by paid receipts are invalid, so demand documentation. In Chicago, the RLTO's own double-deposit penalty applies even to technical violations like a missing receipt.
Keep reading
Deposit deadlines are easy to miss — until they cost you triple.
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Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.