Chicago and Cook County Security Deposit
Learn the regulation information pertaining to Security Deposits for Chicago and Cook County.
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Chicago, Illinois Security Deposits
Security Deposits under the Chicago RLTO
The Chicago Residential Landlord and Tenant Ordinance (RLTO) Section 5-12-080 contains numerous obligations and protections for renters regarding security deposits. Chicago RLTO contains very strict consequences for a landlord that violates any of the below security deposit provisions contained in Section 5-12-080. Specifically, Chicago Landlords have the following obligations with respect to tenants’ security deposits:
1. Chicago landlords shall maintain security deposits in a separate bank account. The security deposit shall not be “commingled” with the landlord’s personal assets including rent monies received.
2. Chicago landlords shall clearly and conspicuously disclose in the written lease signed by the tenant, the bank name and address where the security deposit is being held. An address such as “Chicago, Illinois” is legally insufficient.
3. Chicago landlords shall give tenants a signed written security deposit receipt, containing the amount of the security deposit and a description of the dwelling unit on the receipt. The written receipt must be provided when the tenant makes the security deposit payment. If a landlord fails to provide a legal receipt, the tenant shall be entitled to the “immediate” return of the security deposit.
4. Chicago landlords shall pay interest annually, within thirty (30) days after the end of “each” 12-month rental period. If a landlord pays accrued interest solely at the end of a tenancy, this is a violation of the Chicago RLTO.
5. A Chicago landlord shall return the security deposit and interest no later than forty five (45) days after a tenant vacates the dwelling unit.
6. Regarding deductions made to a security deposit, Chicago landlords shall deliver or mail to the last known address of the tenant within thirty (30) days an “itemized statement” of the damages allegedly caused to the premises.
7. In addition to the “itemized statement,” Chicago landlords shall furnish the tenant with “copies of paid receipts” or a certification of actual costs of repairs of damage if the work was performed by the landlord’s employees within thirty (30) days from the date the statement showing estimated cost was furnished to the tenant.
*Most importantly, the Chicago RLTO has very strict consequences for a Chicago landlord that violates any of the above security deposit provisions contained in RLTO Section 5-12-080.
Pursuant to Chicago RLTO Section 5-12-080(f)(1), if the landlord violates any of the above security deposit obligations the tenant shall be awarded damages in an amount equal to “two times the security deposit” plus interest. Moreover, pursuant to Chicago RLTO Section 5-12-180, the tenant shall be entitled to reasonable attorneys fees and costs from the landlord.
Cook County, Illinois Security Deposits
Security Deposits under the Cook County RTLO
Unlike the Chicago RLTO, The Cook County Residential Tenant and Landlord Tenant Ordinance (RTLO) Section 42-811, contains only three (3) strict liability obligations and protections for renters regarding security deposits. Specifically, Cook County Landlords have the following obligations with respect to tenants’ security deposits:
1. A Cook County landlord may not demand or receive a security deposit in an amount in excess of one and one-half months’ rent.
2. A tenant shall pay the landlord, at the time the tenant moves into the premises or at any other time mutually agreed upon by the parties, the amount of the security required by the landlord. Any portion in excess of one (1) month’s rent, at the election of the tenant, shall be paid either at the time the tenant pays the initial security deposit, or shall be paid in no more than six (6) equal installments no later than six (6) months after the effective date of the lease.
3. Regarding deductions made to a security deposit, Cook County landlords shall deliver or mail to the last known address of the tenant within thirty (30) days an “itemized statement” of the damages allegedly caused to the premises. In addition to the “itemized statement,” Cook County landlords shall furnish the tenant with “copies of paid receipts” or a certification of actual costs of repairs of damage if the work was performed by the landlord’s employees within thirty (30) days from the date the statement showing estimated cost was furnished to the tenant.
*Like the Chicago RLTO, the Cook County RTLO has very strict consequences for a Cook County landlord that violates any of the above security deposit provisions contained in RTLO Section 42-811.
Pursuant to Cook County RTLO Section 42-811(M), if the landlord fails to comply with the above security deposit obligations the tenant shall be awarded damages in an amount equal to “two times the security deposit and reasonable attorney’s fees.”
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Aaron Krolik Law Office, LLC
Chicago & Cook County, Illinois
Chicago Renters Rights Lawyer
