Illinois Security Deposit Laws: Limits, Returns, and Deductions
A complete guide to Illinois security deposit laws, including state regulations, local limits in Cook County and Evanston, return deadlines, and allowable...
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
Illinois handles security deposits differently depending on whether you are governed by general state law—primarily the Security Deposit Return Act (765 ILCS 710), which became effective on January 1, 1974—or stricter local ordinances. Landlords must understand both layers of regulation to avoid severe financial penalties.
Official Law Citation: The rules and regulations outlined on this page are governed by the Illinois Security Deposit Return Act (765 ILCS 710).
Security Deposit Limits
State Level
Illinois state law does not set a limit on the maximum amount a landlord can charge for a security deposit. Most landlords standardly ask for one or two months' rent.
Local Ordinances Several key areas impose strict limits:
- Cook County (Suburbs): Limited to 1.5 times the monthly rent.
- Evanston: Limited to 1.5 times the monthly rent.
- Oak Park: Limited to 1.5 times the monthly rent.
Holding the Deposit (Interest Requirements)
If you own a building with 25 or more units in Illinois, the Security Deposit Interest Act (765 ILCS 715) requires you to pay interest on a deposit held for more than six months.
- The interest rate is equal to the interest paid on a minimum deposit passbook savings account at the state's largest commercial bank.
- Interest must be paid to the tenant within 30 days of the end of each 12-month rental period if the accumulated interest is $5 or more.
- If the accumulated interest is less than $5, the landlord is not required to pay it until the termination of the tenancy.
Note: The Chicago Residential Landlord and Tenant Ordinance (CRLTO) requires interest to be paid regardless of the number of units.
Return Deadline: 30 vs 45 Days
Illinois requires landlords to return the security deposit within 45 days after the tenant moves out.
However, if you are making deductions, the timeline accelerates:
- You must provide an itemized statement of damages to the tenant within 30 days of their move-out.
- The statement must list the exact costs of repair alongside paid contractor receipts.
- If estimates are provided, the final receipts must follow within another 30 days.
What Can Be Deducted
Landlords may withhold funds from the security deposit for:
- Unpaid rent or late fees stipulated in the lease.
- Utilities or other fees left unpaid by the tenant.
- Repair of tenant-caused damage that goes beyond normal wear and tear.
- Professional cleaning if the unit was not returned in move-in condition.
What is NOT Deductible
- Normal wear and tear - Faded paint, carpet indentations, minor wall scuffs.
- Upgrades - Replacing old appliances with new ones simply because the old ones broke.
- Excessive fees - Cleaning charges must reflect actual costs, not an arbitrary penalty.
Penalties for Non-Compliance
Illinois Circuit Courts deal harshly with landlords who improperly withhold deposits under 765 ILCS 710/2:
- If a landlord fails to provide the required itemized statement or wrongfully withholds the deposit, the tenant may sue for twice the amount of the deposit.
- Additionally, the landlord will generally be responsible for covering the tenant's court costs and attorney's fees.
Best Practices for Landlords
- Conduct a move-in inspection and have the tenant sign a condition report.
- Take dated photos/videos of the property before and after tenancy.
- Draft a detailed lease that outlines exactly what constitutes deductible damage.
- Adhere to local laws first, as they almost always override state statutes with stricter caps or mandates.
How Landager Helps
Landager tracks lease terms, required compliance items, and accounting records - making it easy to stay compliant with Illinois regulations.
Sources & Official References
Frequently Asked Questions
▶What is the Illinois security deposit limit and return deadline?
Illinois state law does not cap security deposit amounts, but Cook County, Evanston, and Oak Park limit deposits to 1.5 times the monthly rent. State law requires deposits to be returned within 45 days of move-out. If deductions are made for property damage, an itemized statement with paid receipts must be provided within 30 days. Chicago's CRLTO requires deposits in interest-bearing accounts with annual interest payments to tenants.
▶What are the Illinois landlord-tenant laws every property owner should know?
Illinois landlord-tenant law is a mix of state statutes (765 ILCS) and powerful local ordinances. The state provides a baseline framework covering security deposits, eviction procedures, and habitability, but cities like Chicago (CRLTO), Evanston, and suburban Cook County (RTLO) impose significantly stricter requirements around deposit returns, late fees, and tenant remedies. Non-compliance with local ordinances can result in severe penalties.
Read the complete guide▶What is the Illinois eviction process and how long does it take?
Illinois eviction follows the Forcible Entry and Detainer process. For non-payment, landlords serve a 5-Day Notice to Quit. For lease violations, a 10-Day Notice to Quit is required. To terminate a month-to-month tenancy without cause, 30 days' notice is needed. Self-help evictions (changing locks, removing belongings) are strictly prohibited. In Chicago, the CRLTO imposes additional notice requirements and tenant cure periods that landlords must follow.
Read the complete guide▶Does Illinois have rent control or caps on rent increases?
No. Illinois passed the Rent Control Preemption Act, which prohibits any city or municipality from enacting rent control measures. There are no state limits on how much a landlord can increase rent. During a fixed-term lease, rent cannot be increased unless the lease explicitly allows it. For month-to-month tenancies, landlords must provide at least 30 days' written notice before any increase takes effect.
Read the complete guide▶What is the Chicago RLTO and how does it affect landlords?
The Chicago Residential Landlord and Tenant Ordinance (CRLTO) is one of the most powerful local tenant protection laws in the country. It imposes strict rules on security deposit handling (interest-bearing accounts required), mandates specific lease disclosures, limits late fees, and provides tenants with aggressive remedies including the ability to recover twice the deposit amount if a landlord violates the ordinance. Landlords operating in Chicago must comply with both state law and the CRLTO.
Read the complete guide▶What disclosures must Illinois landlords provide to tenants?
Illinois landlords must disclose lead-based paint hazards for pre-1978 buildings, radon hazards if testing reveals elevated levels, flood zone status and flooding history within the past 10 years (new in 2025), and shared utility meter arrangements where tenants may be paying for common area utilities. Chicago adds additional required disclosures including building code violations, foreclosure proceedings, and the full text of the CRLTO summary.
Read the complete guide▶What are Illinois landlord maintenance obligations and habitability standards?
Illinois enforces an implied warranty of habitability, requiring residential properties to be fit for human occupation and comply with building, housing, and health codes. Tenants can use the 'repair and deduct' remedy (765 ILCS 742) for repairs costing less than $500 or half a month's rent — they give 14 days' written notice, have the work done professionally, and deduct the cost from rent. Chicago's CRLTO provides even stronger tenant remedies for habitability failures.
Read the complete guide▶What are the late fee rules for rental properties in Illinois?
Illinois state law does not impose a specific cap on late fees but requires them to be reasonable and stated in the lease. Chicago's CRLTO is more restrictive, capping late fees at $10 per month for rent under $500, and 5% of the monthly rent amount for higher rents. The CRLTO also mandates a 5-day grace period before any late fee can be assessed. Violations of these limits can trigger tenant remedies under the ordinance.
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