The Security Deposit Return Act (765 ILCS 710)
The current text of 765 ILCS 710/1, as amended by Public Act 103-224 effective January 1, 2024, applies to lessors of residential real property. Older summaries, including some government pamphlets, still say the Act only covers buildings with five or more units. That threshold is not in the current statute.
To keep any part of a deposit for property damage, the landlord must, within 30 days of the later of the date you vacated or the date your right of possession ended, deliver an itemized statement of the damage with the estimated or actual cost of each repair, attaching paid receipts or copies. Delivery can be in person, by postmarked mail to your last known address, or by email to a verified address you provided. If the statement uses estimates, the landlord must send the paid receipts within 30 days after the statement.
If no compliant statement goes out, the landlord must return the deposit in full within 45 days of the date you vacated.
New: lease-specified charges and landlord labor
The 2024 amendments let a landlord who does the work personally include the reasonable cost of their own labor. If a written lease specifies the cost of cleaning, repairing or replacing a component, the landlord may withhold that dollar amount, but only for damage beyond normal wear and tear and only at a reasonable cost to restore the unit. The statement must reference the lease amount and include a copy of that part of the lease.
The 2× penalty
If a circuit court finds the landlord refused to supply the itemized statement, or supplied it in bad faith, and failed to return the deposit due on time, the landlord owes twice the amount of the security deposit due, plus court costs and reasonable attorney's fees. One protection for landlords: if you never gave a mailing or email address, the landlord isn't liable for damages or penalties caused by that.
Interest: 765 ILCS 715
Statewide, interest is owed only by landlords of properties with 25 or more units in one building or a complex on contiguous parcels, on deposits held more than six months. The rate is the passbook-savings rate of the largest Illinois-based commercial bank as of December 31 of the year before the lease began. IDFPR announced that the rate as of December 31, 2025 was 0.005%, so the amounts are tiny. Interest of $5 or more is paid within 30 days after each 12-month period, and all accrued interest is due at the end of the tenancy. Willful non-payment costs the landlord an amount equal to the deposit plus costs and fees.
Chicago: the RLTO is stricter
Most Chicago rentals are covered by the Residential Landlord and Tenant Ordinance, Municipal Code ch. 5-12. Under § 5-12-080 the landlord must:
- give a signed receipt for the deposit and hold it in a federally insured, interest-bearing Illinois account, not commingled with the landlord's money;
- pay interest each year on deposits held over six months, at the rate set by the City Comptroller (0.01% for 2026);
- send an itemized statement of damages within 30 days of move-out before deducting for damage;
- return the deposit and required interest, less unpaid rent and documented damages, within 45 days.
The key difference is the remedy. If the landlord fails to comply with any part of § 5-12-080(a)–(e), "the tenant shall be awarded damages in an amount equal to two times the security deposit plus interest." No bad-faith finding is required. Chicago courts enforce this regularly, which is why deposit paperwork matters so much there. Some suburbs, such as Evanston, have their own landlord-tenant ordinances, so check yours.
Steps to recover an Illinois deposit
- Give your landlord a mailing address and/or verified email in writing.
- Document the unit at move-out and return keys.
- Use our calculator for day 30 and day 45.
- If the statement is missing, lacks receipts, or charges normal wear and tear, send a demand letter citing 765 ILCS 710/1 (and RLTO § 5-12-080 in Chicago).
- Sue in small claims court in your county's circuit court; ask for 2× the deposit, costs and fees.
Frequently asked questions
Is there a security deposit limit in Illinois?
No. Illinois has no statewide cap on residential security deposits.
How long does an Illinois landlord have to return a deposit?
45 days after you move out if no itemized damage statement is sent. To deduct for damage, the landlord must send an itemized statement with receipts or estimates within 30 days.
What is the penalty for not returning a deposit in Illinois?
If a court finds the landlord refused to provide the statement or did so in bad faith and failed to return the deposit on time, the landlord owes twice the deposit due, plus court costs and attorney's fees.
Do Illinois landlords pay interest on deposits?
Statewide, only for properties with 25 or more units and deposits held over six months. In Chicago, the RLTO requires interest on covered deposits; the 2026 rate is 0.01%.
How is Chicago different?
The Chicago RLTO requires a receipt, a separate interest-bearing account, annual interest, and awards two times the deposit plus interest for violations, with no bad-faith finding required.
Sources
- 765 ILCS 710/1 — Security Deposit Return Act (Illinois General Assembly)
- 765 ILCS 715 — Security Deposit Interest Act
- IDFPR — 2026 interest rate under the Security Deposit Interest Act
- City of Chicago — Security deposit interest rates (RLTO)
- Chicago Municipal Code § 5-12-080 (American Legal Publishing)
Last reviewed Oct 17, 2026. Read how we verify. Found an error? Tell us.