✓ Law Verified June 2026
This guide explains illinois security deposit law in plain English — how much your landlord can charge, when they must return it, what they can and cannot deduct, and what to do if they do not give it back. All figures are from Illinois law, verified as of June 2026.
In This Illinois Guide:
Illinois Security Deposit Rules at a Glance
| Maximum deposit | No statewide statutory limit. Illinois does not cap security deposits for most residential rentals. Landlords commonly charge 1 to 2 months of rent, but this is customary, not law. Exception: mobile home park deposits are capped at 1 month of rent. Note: Chicago caps deposits at 1.5 times one month of rent under the RLTO. |
| Return deadline | 45 days to return the full deposit if no deductions are claimed. If the landlord withholds any portion, they must provide an itemized statement of damages with estimated or actual costs within 30 days after move-out, then furnish paid receipts within 30 days after the estimated-cost statement. (765 ILCS 710, Section 1). As of January 1, 2024, these requirements apply to ALL residential landlords regardless of building size — the old 5-or-more-unit threshold was eliminated by SB1741. |
| Itemized deductions required | YES. The landlord must provide an itemized statement listing each item of damage, the estimated or actual cost of repair or replacement, and copies of paid receipts. If estimated costs are given first, actual paid receipts must follow within 30 days. The statement may be delivered in person, by mail to the tenant’s last known address, or by email to a verified tenant email address. If no itemized statement and receipts are provided within the deadlines, the landlord must return the full deposit. |
| Interest on deposit required | YES, but only for properties with 25 or more units AND only when the deposit is held for 6 months or more (765 ILCS 715). The rate is set annually — it equals the interest paid by the largest Illinois commercial bank on minimum-deposit passbook savings accounts as of December 31 of the prior year. Interest must be paid within 30 days after each 12-month rental period, in cash or as a rent credit, if accumulated interest is 5 dollars or more. For properties with fewer than 25 units, state law does not require interest. Chicago requires interest on ALL deposits regardless of building size at its own annual rate, and deposits must be held in a federally insured interest-bearing account in Illinois. |
| Penalty for late/bad-faith return | If a court finds the landlord refused to supply the required itemized statement, supplied it in bad faith, or failed to return the deposit within the required time limits, the landlord may be liable for an amount equal to twice the deposit amount due, plus court costs and reasonable attorney fees (765 ILCS 710, Section 1). Tenants have 2 years from the date the deposit was due to file a lawsuit. In Chicago, the standard is strict liability — the landlord does not need to have acted willfully. Chicago tenants may recover two times the deposit plus attorney fees and court costs. |
Move-in/move-out walkthrough: NO. Illinois state law does not require move-in or move-out walkthrough inspections. However, tenants are strongly encouraged to document the condition of the unit at move-in and move-out with photos, video, and written condition reports, as this evidence is critical if deductions are disputed.
Separate deposit account: For properties with 25 or more units, state law requires the deposit to be held in a separate federally insured account at an Illinois financial institution (765 ILCS 715). For properties with fewer than 25 units, state law imposes no separate-account requirement. In Chicago, ALL landlords must hold deposits in a federally insured interest-bearing account in Illinois, deposits cannot be commingled with the landlord’s personal funds, the deposit remains the tenant’s property, and the landlord must disclose the bank name and address in the lease or within 14 days of receipt.
What Your Landlord Can and Cannot Deduct in Illinois
Unpaid rent, damage to the unit beyond normal wear and tear caused by the tenant, unpaid utility bills where applicable, costs arising from lease violations, and late fees if specified in the lease. The landlord may include the reasonable cost of their own labor for repairs. The landlord may NOT deduct for normal wear and tear or pre-existing conditions.
Normal wear and tear vs damage: Illinois has no statutory definition, but courts define normal wear and tear as deterioration that results from ordinary, reasonable use of the premises without negligence, carelessness, or abuse by the tenant.
Examples of normal wear and tear (not deductible): minor scuff marks on walls, small nail holes from hanging pictures, worn or aging carpet, faded or chipped paint from normal aging, slight carpet stains from ordinary use.
Examples of damage beyond normal wear (deductible): large holes in walls, broken windows or fixtures, pet stains or damage, burns or gouges in flooring, unauthorized modifications to the unit.
How to Get Your Deposit Back in Illinois
A tenant who believes deductions were wrongful should first send a written demand letter to the landlord requesting return of the deposit. If the landlord does not comply, the tenant may file a lawsuit in Illinois small claims court for disputes under 10000 dollars, or in circuit court for larger amounts or to seek attorney fees.
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Many tenants can recover up to twice the amount wrongfully withheld plus court costs and reasonable attorney fees. The statute of limitations is 2 years from the date the deposit was due. Tenants should preserve move-in and move-out documentation including photos, video, and written condition reports as evidence.
Other Illinois deposit rules: Illinois has two separate deposit statutes: the Security Deposit Return Act (765 ILCS 710) governing return timelines and penalties, and the Security Deposit Interest Act (765 ILCS 715) governing interest. As of January 1, 2024, the return and itemization requirements apply to ALL residential landlords regardless of building size — previously they only applied to properties with 5 or more units.
When rental property is sold or transferred, the new owner becomes liable for the full deposit including interest, and the original landlord remains jointly and severally liable. In foreclosure situations, the holder of the certificate of sale must post written notice on each dwelling unit within 21 days of receiving the deposits.
Chicago tenants have additional protections under the Residential Landlord and Tenant Ordinance (RLTO), including a 1.5-month deposit cap, mandatory interest-bearing separate accounts for all landlords, strict liability penalties of double the deposit, and required written receipts — owner-occupied buildings with 6 or fewer units are exempt from some RLTO provisions. Cook County (outside Chicago) has its own Residential Tenant Landlord Ordinance (RTLO) with a 30-day return deadline and double-deposit penalties.
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Official Illinois Sources & Resources
- Illinois Attorney General: https://illinoisattorneygeneral.gov/Page-Attachments/LandlordAndTenantRightsLaws.pdf
- Illinois Security Deposit Statute: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2202&ChapterID=62
- U.S. Department of Housing and Urban Development: hud.gov
- Cornell Legal Information Institute: law.cornell.edu/wex
Understanding Illinois Security Deposit Law
Your Illinois security deposit is your money until the landlord proves a lawful deduction. Illinois security deposit law sets clear limits on how much can be charged, what can be deducted, and when the balance must be returned. If your landlord misses the Illinois security deposit return deadline or takes deductions that are not allowed, you may be entitled to penalties.
Document the condition of your unit at move-in and move-out — photos are the best protection for your Illinois security deposit.
This Illinois security deposit guide was last verified against official sources in June 2026. Laws change — verify with your state or a local legal-aid office.
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Disclaimer: This guide is informational only and is not legal advice. Landlord-tenant laws change and vary by city and county within a state. Verify current rules with your state, your local court, or a free legal-aid office before acting. If you are facing eviction, contact a local tenant attorney or legal-aid organization right away.