Illinois Security Deposit Law & Chicago CRLTO Rights
The Illinois Security Deposit Return Act (765 ILCS 710): Deadlines and unit thresholds
Statewide Illinois law applies to residential properties containing 5 or more units. Under 765 ILCS 710/1, if no damage is claimed, the landlord must return the entire deposit within 45 days after the tenant vacates.
If the landlord claims deductions for damage, they must deliver an itemized statement specifying estimated repair costs within 30 days of move-out. The landlord then has an additional 30 days to furnish paid receipts proving actual expenditure. If no receipts are provided, the deduction must be refunded.
Chicago CRLTO § 5-12-080: Strict liability escrow accounts and bank disclosures
For renters in Chicago, the CRLTO (§ 5-12-080) supersedes state law for almost all non-owner-occupied rental properties (owner-occupied buildings of 6 units or fewer are exempt).
Under CRLTO, a landlord must hold the security deposit in a separate, federally insured interest-bearing bank account located within Illinois. The lease or move-in receipt must specify the exact name and address of the financial institution. Even a minor typographical failure or failure to disclose the bank name constitutes a strict-liability violation.
Interest requirements on security deposits held over 6 months in Illinois
Under both the Illinois Security Deposit Interest Act (765 ILCS 715) for 25+ unit buildings and the Chicago CRLTO for covered properties, landlords must pay annual interest on deposits held for more than 6 months.
The City of Chicago publishes an official annual deposit interest rate each January. Landlords must disburse interest annually to the tenant in cash or by rent credit within 30 days of each 12-month lease period.
Statutory penalties: 2x double damages, attorney fees, and deposit recovery
Under statewide statute 765 ILCS 710/1(a), a landlord who wrongfully refuses to return deposit funds is liable for double the amount of the deposit, plus court costs and reasonable attorney fees.
In Chicago, CRLTO § 5-12-080(f) mandates that for any violation (including failure to disclose bank details, failure to pay annual interest, or missing the 45-day deadline), the tenant is entitled to two times the deposit amount, plus immediate return of the original deposit, plus mandatory attorney fees and litigation costs.
Handling move-in fees versus refundable security deposits in Chicago rentals
Due to the strict liabilities of the CRLTO, many Chicago landlords charge non-refundable 'move-in fees' (typically $300 to $600) instead of collecting security deposits. A true move-in fee is non-refundable and exempt from CRLTO escrow rules.
However, if a landlord labels a charge a 'move-in fee' but subsequently attempts to withhold money at move-out for damage, courts treat the fee as a disguised security deposit subject to all CRLTO penalties.
Frequently asked questions
Does Illinois state law apply to single-family rental homes or 2-flats? +
The statewide Illinois Security Deposit Return Act applies only to buildings with 5 or more units. However, tenants in smaller properties retain common-law breach of contract rights and can sue in small claims court for unlawful withholding.
What is the deadline for a Chicago landlord to return a security deposit? +
Under Chicago CRLTO § 5-12-080, a landlord has 45 days after the tenant vacates to return the security deposit with any accrued interest, or 30 days to provide itemized estimates of damage.
What happens if a Chicago landlord fails to pay annual deposit interest? +
Failure to pay annual interest within 30 days of the lease anniversary entitles the Chicago tenant to statutory damages equal to two times the entire deposit amount under CRLTO § 5-12-080(f).
How do I take an Illinois landlord to Small Claims Court? +
You can file a claim in the County Circuit Court (such as the Cook County Daley Center) for up to $10,000 without hiring an attorney. If you prevail under 765 ILCS 710 or CRLTO, the landlord must reimburse your filing fees and legal costs.
Worked calculation scenarios
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Under California Civil Code § 1950.5, landlords must return your deposit within 21 days. Generate a formal demand letter and claim up to 2x damages.
New York: 14-Day Deposit LawUnder the NY HSTPA (GOB § 7-108), landlords must return security deposits within 14 days or forfeit all deductions. Generate an official demand letter.
Texas: 30-Day & 3x Deposit LawUnder Texas Property Code § 92.109, landlords must return deposits within 30 days. Bad-faith landlords face 3x treble damages plus $100. Send notice.
Florida: 15-Day Deposit LawUnder Florida Statute § 83.49, landlords have 15 to 30 days to return deposits or make claims. Learn your dispute deadlines and send a statutory notice.
Washington: 30-Day Deposit Return & RCW 59.18 RightsUnder RCW 59.18.280 (HB 1074), Washington landlords have 30 days to return deposits. If no signed move-in checklist exists, withholding is barred.
Massachusetts: 30-Day Rule & 3x Treble DamagesUnder M.G.L. c. 186 § 15B, Massachusetts landlords must return deposits within 30 days with interest. Violations carry mandatory 3x treble damages.
Illinois: 45-Day Deposit Law & Chicago CRLTOUnder 765 ILCS 710/1 and Chicago CRLTO § 5-12-080, landlords face strict return deadlines and 2x statutory damages for wrongful deductions.
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