| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent and utilities
Costs of damage Costs due to breach of lease Charges outlined in the lease Other actual costs not in lease |
| Return Deadline | 30 days with deductions
45 days if no deductions |
| Itemized Deductions | Required |
| Penalty for Late Return | 2x deposit + amount wrongfully withheld + court costs + attorneys’ fees |
For laws on security deposit collections and holdings in Illinois, click here.
Some cities and counties may have regulations which are different from those presented here. Always check local laws.
Security Deposit Deductions in Illinois
Illinois allows the following deductions from security deposits:
- Unpaid rent or utilities
- Costs of damage excluding normal wear and tear
- Costs incurred due to a breach in the lease
- Charges outlined in the lease
- Other actual costs not outlined in the lease
Although state law allows a wide variety of deductions from the security deposit, the Chicago Municipal Code is narrower, only allowing deductions for unpaid rent and the cost of damage excluding normal wear and tear.
Some local governments in Illinois have landlord-tenant laws with their own rules for security deposits, including:
Most states, including Illinois, do not have a legal limit on how much a landlord can charge for damages as long as the charges are reasonable and reflect actual landlord expenses.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What is Considered Normal Wear and Tear in Illinois?
“Normal wear and tear” is damage and deterioration to a property that happens over time using an ordinary and reasonable level of care. Normal wear and tear includes things like:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
“Excessive damage” means any careless, reckless, or intentional damage that occurs because of someone on the property with the tenant’s permission. Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in Illinois?
Landlords can charge for replacing the carpet if it is damaged beyond ordinary wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in Illinois?
Illinois landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in Illinois?
Illinois law allows landlords to include a standard cleaning fee in the lease agreement. Landlords may also charge for reasonable cleaning costs.
A reasonable cleaning cost is consistent with normal area rates for cleaning services. Reasonable cleaning brings the unit back to its original sanitary condition at the start of the lease.
Landlords cannot charge for excessive deep cleaning or at a rate that is not typical for local cleaning services.
In Byington v. Lease An Apartment, Inc., an Illinois court determined that a landlord was reasonable in deducting $60 from the security deposit to professionally clean the carpets, which included fees for supplies.
Can the Landlord Charge for Painting in Illinois?
Illinois landlords can charge for painting, except for normal wear and tear. For example, a landlord might be able to charge for:
- Damage to the paint beyond normal wear and tear
- Tenant repainting without the landlord’s consent
- Tenant repainting with consent, but not doing the work to a professional standard
Normal paint wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint.
Landlords can charge for repainting if the damage is not the result of ordinary care. This includes stains, large or deep scratches, and water damage.
Security Deposit Returns in Illinois
Landlords must return security deposits within 45 days from the date the tenant vacates the unit if there are no deductions or within 30 days if the landlord intends to make deductions. Beginning in 2024, all landlords must send tenants an itemized written statement of any security deposit deductions, with receipts.
The security deposit and written statement (if required) must be sent by hand delivery, mail, or email.
How Long Do Landlords Have to Return Security Deposits in Illinois?
Illinois landlords have 45 days after the tenant vacates the rental unit to return a security deposit if there are no deductions, or 30 days when they intend to withhold all or a portion of the security deposit.
Do Landlords Owe Interest on Security Deposits in Illinois?
Illinois law does require landlords to provide interest on security deposits, but only in some situations, and some cities, like Chicago, have different rules regarding interest on security deposits. The rates are calculated differently at the state and city level.
The current interest rate in Illinois is 0.005% and the rate for Chicago is 0.01%.
By Illinois state law, landlords must pay interest on security deposits if they lease 25 or more units (either in one building or in a complex of buildings) and the security deposit is held for six months or more. Interest accrues from the day the landlord receives the deposit.
In Chicago, tenants are entitled to interest after their security deposit has been held for longer than six months and accruing from the first day of their lease term. Dwelling units in owner-occupied premises containing six units or fewer are exempt from this rule.
When a tenant is entitled to interest on their security deposit, it must be either credited towards rent or paid to the tenant directly within 30 days after the end of each 12-month rental period, if the accrued interest is $5 or more. The $5 limit does not apply in Chicago, so interest there must always be paid to eligible tenants on an annual basis.
How Do Landlords Give Notice in Illinois?
When landlords leasing five or more units make deductions from the security deposit for repairs, a written notice must be delivered by hand delivery or mail to the tenant’s last known address or email and must include the amount of the security deposit due (if any) to the tenant, plus a written statement of deductions.
Landlords do not have to send a written statement of deductions if their only deduction is for unpaid rent or if they lease four or fewer rental units.
Itemized Statement of Costs. The costs listed on the itemized statement can be specified and justified as follows:
- When the actual costs are paid, the landlord must specify the damage repaired and include originals or copies of the receipts.
- A written estimate of the cost of restoration or repairs done by the landlord or the landlord’s employees may be used in lieu of actual costs and receipts.
- When the landlord is only able to provide an estimate of the cost of work completed by a third party within the time frame, the landlord can include reasonable estimates of the cost but must provide the tenant with the receipts or copies thereof within 30 days of providing the itemized statement.
- Where the deductions are charges that are specific amounts provided for in the lease, the landlord can include a copy of the portions of the lease agreement referencing those charges in lieu of receipts.
- Where the landlord is not able to provide the receipts or copies of receipts as required by no fault of their own, the landlord may provide whatever evidence the landlord has of having paid the costs and a sworn statement detailing the reason for the lack of receipts.
If the tenant fails to provide the landlord with the last known address or an email address, the landlord will not be liable for any damages.
Can a Security Deposit Be Used for Last Month’s Rent in Illinois?
Illinois law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Disputes in Illinois
If landlords do not return the security deposit or provide an itemized statement of deductions (if any) within the required time period, they are liable for actual damages in court.
However, if a landlord is found to have acted in bad faith or intentionally violated the security deposit rules, they may be liable for up to twice the amount of the deposit in addition to the amount wrongfully withheld, court costs, and attorneys’ fees.
Tenants can also take legal action against a landlord for making unreasonable deductions from the security deposit.
How Can Tenants File a Dispute for a Security Deposit in Illinois?
If a landlord fails to return the security deposit, the tenant can file a dispute in Small Claims Court if the amount of damages is less than $10,000. If the amount is greater, the tenant must file a civil case in the local Circuit Court.
A small claims case for a landlord-tenant dispute must be filed within 2 to 5 years depending on the type of claim and an attorney is not required but allowed.
Small claims cases are filed in the Circuit Court in the county where the property is located or where the defendant lives or has an office.
Sources
- 1 765 ILCS 710/1(a)
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Except as provided in subsection (b), a lessor of residential real property who has received a security deposit from a lessee to secure the payment of rent or to compensate for damage to the leased premises may not withhold any part of that deposit as reimbursement for property damage unless the lessor has, within 30 days of the date that the lessee vacated the leased premises or within 30 days of the date the lessee’s right of possession ends, whichever is later, furnished to the lessee, by personal delivery, by postmarked mail directed to his or her last known address, or by electronic mail to a verified electronic mail address provided by the lessee, an itemized statement of the damage allegedly caused to the leased premises and the estimated or actual cost for repairing or replacing each item on that statement, attaching the paid receipts, or copies thereof, for the repair or replacement. If the lessor utilizes his or her own labor to repair or replace any damage or damaged items caused by the lessee, the lessor may include the reasonable cost of his or her labor to repair or replace such damage or damaged items. If estimated cost is given, the lessor shall furnish to the lessee, delivered in person or by postmarked mail directed to the last known address of the lessee or another address provided by the lessee, paid receipts, or copies thereof, within 30 days from the date the statement showing estimated cost was furnished to the lessee, as required by this Section. If a written lease specifies the cost for cleaning, repair, or replacement of any component of the leased premises or any component of the building or common areas that, if damaged, will not be replaced, the lessor may withhold the dollar amount specified in the lease. Costs specified in a written lease shall be for damage beyond normal wear and tear and reasonable to restore the leased premises to the same condition as at the time the lease began. The itemized statement shall reference the dollar amount specified in the written lease associated with the specific building component or amenity and include a copy of the applicable portion of the lease. Deductions for costs or values not specified in the lease shall otherwise comply with the requirements of this Section. If no such statement and receipts, or copies thereof, are furnished to the lessee as required by this Section, the lessor shall return the security deposit in full within 45 days of the date that the lessee vacated the premises, delivered in person or by postmarked mail directed to the last known address of the lessee or another address provided by the lessee. If the lessee fails to provide the lessor with a mailing address or electronic mail address, the lessor shall not be held liable for any damages or penalties as a result of the lessee’s failure to provide an address.
Source Link - 2 Chicago Mun. Code § 5-12-080
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The landlord shall, within 45 days after the date that the tenant vacates the dwelling unit or within seven days after the date that the tenant provides notice of termination of the rental agreement pursuant to Section 5-12-110(g), return to the tenant the security deposit or any balance thereof and the required interest thereon; provided, however, that the landlord, or successor landlord, may deduct from such security deposit or interest due thereon for the following:
(1) Any unpaid rent which has not been validly withheld or deducted pursuant to state or federal law or local ordinance; and
(2) A reasonable amount necessary to repair any damage caused to the premises by the tenant or any person under the tenant’s control or on the premises with the tenant’s consent, reasonable wear and tear excluded. In case of such damage, the landlord shall deliver or mail to the last known address of the tenant within 30 days an itemized statement of the damages allegedly caused to the premises and the estimated or actual cost for repairing or replacing each item on that statement, attaching copies of the paid receipts for the repair or replacement. If estimated cost is given, the landlord 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 30 days from the date the statement showing estimated cost was furnished to the tenant.
Source Link - 3 765 ILCS 715/1
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A lessor of residential real property, containing 25 or more units in either a single building or a complex of buildings located on contiguous parcels of real property, who receives a security deposit from a lessee to secure the payment of rent or compensation for damage to property shall pay interest to the lessee computed from the date of the deposit at a rate equal to the interest paid by the largest commercial bank, as measured by total assets, having its main banking premises in this State on minimum deposit passbook savings accounts as of December 31 of the calendar year immediately preceding the inception of the rental agreement on any deposit held by the lessor for more than 6 months.
Source Link - 4 Chicago Mun. Code § 5-12-080(c)
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A landlord who holds a security deposit or prepaid rent pursuant to this section for more than six months shall pay interest to the tenant accruing from the beginning date of the rental term specified in the rental agreement at the rate determined in accordance with Section 5-12-081 for the year in which the rental agreement was entered into. The landlord shall, within 30 days after the end of each 12-month rental period, pay to the tenant any interest, by cash or credit to be applied to the rent due.
Source Link - 5 Chicago Mun. Code § 5-12-020(a)
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Rental of the following dwelling units shall not be governed by this chapter, unless the rental agreement thereof is created to avoid the application of this chapter:
(a) Dwelling units in owner-occupied premises containing six units or fewer; provided, however, that Sections 5-12-130(j) and 5-12-160 shall apply to every rented dwelling unit in such premises within the City of Chicago;
Source Link - 6 765 ILCS 715/2
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The lessor shall, within 30 days after the end of each 12 month rental period, pay to the lessee any interest that has accumulated to an amount of $5 or more, by cash or credit to be applied to rent due, except when the lessee is in default under the terms of the lease. The lessor shall pay all interest that has accumulated and remains unpaid, regardless of the amount, upon termination of the tenancy.A lessor who willfully fails or refuses to pay the interest required by this Act shall, upon a finding by a circuit court that he has willfully failed or refused to pay, be liable for an amount equal to the amount of the security deposit, together with court costs and reasonable attorneys fees.
Source Link - 7 Chicago, Ill., Mun. Code § 5-12-080
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The landlord shall, within 30 days after the end of each 12-month rental period, pay to the tenant any interest, by cash or credit to be applied to the rent due.
Source Link - 8 765 ILCS 710/1(c)
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Upon a finding by a circuit court that a lessor has refused to supply the itemized statement required by this Section, or has supplied such statement in bad faith, and has failed or refused to return the amount of the security deposit due within the time limits provided, the lessor shall be liable for an amount equal to twice the amount of the security deposit due, together with court costs and reasonable attorney’s fees.
Source Link - 9 Ill. Sup. Ct. R. 281
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…a small claim is a civil action based on either tort or contract for money not in excess of $10,000, exclusive of interest and costs.
Source Link
