Overview
Illinois security deposit laws operate at both the state and local level. While the state does not cap the amount a landlord may charge, it does set clear rules for the return timeline and itemization of deductions. The City of Chicago has significantly stricter regulations, including a deposit cap and mandatory interest payments.
This guide covers everything landlords and tenants need to know about security deposits in Illinois.
Deposit Limits
Illinois has no statewide statutory limit on the amount a landlord may charge as a security deposit. Landlords outside of Chicago and other municipalities with local ordinances may set any deposit amount.
Chicago-Specific Limits
The City of Chicago Residential Landlord and Tenant Ordinance limits security deposits to 1.5 months' rent. Chicago landlords must also:
- Provide a receipt for the deposit within 3 days
- Hold the deposit in a federally insured interest-bearing account
- Pay interest on the deposit annually within 30 days of the 12-month anniversary
cite: 765 ILCS 710/ (Security Deposit Return Act)
Allowable Deductions
Landlords may only deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Damage beyond normal wear and tear: Repairs for tenant-caused damage
- Cleaning: Costs necessary to return the unit to its move-in condition
- Other lease obligations: Unpaid utility charges or other amounts specified in the lease
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls
- Small nail holes from hanging pictures
- Worn carpet from regular use
- Faded paint due to sunlight
Damage beyond normal wear and tear includes:
- Large holes in walls
- Stained, burned, or torn carpet
- Broken windows or fixtures
- Pet damage to flooring or doors
Return Timeline
Under the Illinois Security Deposit Return Act:
- 30 days: If the landlord makes no deductions, the full deposit must be returned within 30 days of the tenant vacating the unit
- 45 days: If the landlord intends to make deductions, the landlord must provide an itemized statement of damages and estimated or actual costs within 30 days, and return the balance within 45 days
The itemized statement must include:
- A description of each item of damage or charge
- The estimated or actual cost of repair for each item
- Copies of paid receipts or estimates
If the landlord fails to comply with these requirements, the landlord must return the entire deposit and may be liable for twice the deposit amount in damages.
cite: 765 ILCS 710/1 (Security Deposit Return Act)
Pre-Move-Out Inspection
Illinois does not have a statewide requirement for pre-move-out inspections. However, some municipalities (including Chicago) may have their own provisions. Tenants should check local ordinances to determine whether they have the right to request an inspection before moving out.
Regardless of local requirements, tenants are encouraged to:
- Document the condition of the unit at move-in and move-out with photos
- Request a walkthrough with the landlord when possible
- Keep copies of all communications regarding the unit's condition
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit
- File a claim in Small Claims Court (up to $10,000 in Illinois)
- Seek statutory penalties: Courts may award up to twice the deposit amount if the landlord failed to comply with the Security Deposit Return Act
- File a complaint with the local tenant protection agency or consumer affairs office
In Chicago, tenants may also be entitled to additional penalties under the city's Residential Landlord and Tenant Ordinance, including recovery of attorneys' fees.