Illinois Security Deposit Law: Deadlines & Penalties

The Illinois Security Deposit Return Act covers residential rentals. A landlord who wants to keep part of the deposit for damage must send an itemized statement of the damage and the estimated or actual cost of each repair, with paid receipts or copies, within 30 days after the tenant moves out or the right of possession ends, whichever is later. The statement can be delivered in person, by postmarked mail to the last known address, or by email to a verified address the tenant provided.

If the landlord gives only estimates, the paid receipts must follow within 30 days after the statement. A landlord who doesn't send the statement and receipts must return the full deposit within 45 days after the tenant moves out. Because a landlord isn't liable if the tenant never gave a mailing or email address, this letter includes your forwarding address.

If a court finds that the landlord refused to send the itemized statement, or sent it in bad faith, and didn't return the deposit on time, the landlord owes twice the deposit due, plus court costs and reasonable legal fees. Separately, landlords of buildings or complexes with 25 or more units must pay interest on deposits held more than six months under the Security Deposit Interest Act. Illinois small claims cases can seek up to $10,000.