Usually provided by a renter during or before the signing of a lease, a security deposit is an amount of money, typically one month’s rent, held by a landlord or property manager to cover repairs for damages beyond ordinary wear and tear or any outstanding rent after a renter has moved out. In many states the amount of funds used for security deposits is limited by law. In Illinois, a security deposit needs to be included in most types of residential leases and rental agreements. The following is a discussion of Illinois laws dealing with the limits of security deposit funds, along with their use and return.
Amounts Charged for Security Deposits
Illinois law does not regulate the amount that can be charged for security deposits, but city and county laws vary on this subject, so it’s a good idea to check if your municipality or county places a cap on security deposits made by residential renters.
Deadline for Returning Security Deposits
Illinois law stipulates that for properties containing five units or more, renters’ security deposits must be returned from 30 to 45 days after the renters move out, depending on if the renters question deductions taken from their deposits or if landlords provide detailed statements and receipts.
Other information Landlords Need to Know Regarding Security Deposits
Besides adhering to Illinois laws on security deposit limits and returns, landlords in Illinois have to pay interest on security deposits held for more than six months if renting 25 or more units in either one building or in a group of buildings on adjacent properties.
Since security deposits are refundable, minus the above-mentioned deductions, it’s important to know the state regulations and best ways to handle these funds. Keeping itemized records is also advisable in order to be well-prepared should a dispute with a renter arise. If you have any questions or concerns about the state laws that apply to your rental property, contact Bell & Shaw Law, LLC for a free consultation. Our knowledgeable real estate lawyers will be glad to assist you.