Security deposit return law in Illinois
In Illinois, a landlord must return the security deposit within 45 days (765 ILCS 710/1; 765 ILCS 715/1-2). Exactly when that clock starts, and what has to go back with the money, is where states differ most, so the rest of this page stays close to the statute's own words rather than a generic summary.
When the clock starts, and what goes with the money
If any part of the deposit is withheld for damage, the lessor must furnish (in person, by postmarked mail, or by email to a verified address) an itemized statement of the damage with the estimated or actual cost of repairing or replacing each item, within 30 days of the later of vacating or the end of the right of possession, attaching paid receipts. If estimates were given, paid receipts must follow within 30 more days. If no statement and receipts are furnished, the full deposit must be returned within 45 days of vacating. The Act now covers ALL residential lessors; the old 5-or-more-units threshold is gone from the current text (P.A. 103-224, eff. Jan 1, 2024).
How much you can collect
Illinois sets no statewide cap on the size of a residential security deposit. That is not the same as no rules: the holding, itemization, and return duties below still apply in full, and a city or county can set a limit of its own even where the state does not.
What it costs to get this wrong
Bad-faith refusal to supply the itemized statement, or failure to return the deposit due within the time limits, makes the lessor liable for twice the amount of the security deposit due, plus court costs and reasonable attorney's fees (765 ILCS 710/1(c)). Separately, willful failure to pay required interest in 25-plus-unit buildings costs an amount equal to the deposit plus costs and fees (765 ILCS 715/2).
Holding the deposit
No statewide escrow or receipt requirement. Interest is owed only by lessors of residential property containing 25 or more units (single building or complex): rate pegged to the largest Illinois commercial bank's minimum-deposit passbook savings rate as of the prior Dec 31, paid or credited within 30 days after each 12-month period once accumulated interest reaches $5 (Security Deposit Interest Act, 765 ILCS 715).
If your city or county is different
Chicago's RLTO (Muni. Code 5-12-080 and 5-12-081) layers on: a receipt for the deposit, holding it in a federally insured interest-bearing account at an Illinois institution without commingling, and interest at a city-set annual rate when the deposit is held more than 6 months, with a two-times-the-deposit penalty plus attorney's fees for violations. Owner-occupied buildings of 6 or fewer units are generally exempt from the RLTO. Suburban Cook County's RTLO (Sec. 42-811, effective 2021, Chicago excluded) caps deposits at 1.5 months' rent and gives the tenant the right to pay the portion above one month in installments.
Common questions
How long does an Illinois landlord have to return a security deposit?
45 days, under 765 ILCS 710/1; 765 ILCS 715/1-2. When that clock starts, and what has to accompany the money, is set out in the statute: If any part of the deposit is withheld for damage, the lessor must furnish (in person, by postmarked mail, or by email to a verified address) an itemized statement of the damage with the estimated or actual cost of repairing or replacing each item, within 30 days of the later of vacating or the end of the right of possession, attaching paid receipts. If estimates were given, paid receipts must follow within 30 more days. If no statement and receipts are furnished, the full deposit must be returned within 45 days of vacating. The Act now covers ALL residential lessors; the old 5-or-more-units threshold is gone from the current text (P.A. 103-224, eff. Jan 1, 2024).
Does Illinois cap the security deposit?
There is no statewide cap in Illinois. A city or county can still set one, and every other deposit rule in 765 ILCS 710/1; 765 ILCS 715/1-2 still applies.
What happens if an Illinois landlord misses the deadline or withholds wrongly?
Bad-faith refusal to supply the itemized statement, or failure to return the deposit due within the time limits, makes the lessor liable for twice the amount of the security deposit due, plus court costs and reasonable attorney's fees (765 ILCS 710/1(c)). Separately, willful failure to pay required interest in 25-plus-unit buildings costs an amount equal to the deposit plus costs and fees (765 ILCS 715/2).
Does an Illinois security deposit have to be held a particular way?
No statewide escrow or receipt requirement. Interest is owed only by lessors of residential property containing 25 or more units (single building or complex): rate pegged to the largest Illinois commercial bank's minimum-deposit passbook savings rate as of the prior Dec 31, paid or credited within 30 days after each 12-month period once accumulated interest reaches $5 (Security Deposit Interest Act, 765 ILCS 715).
Do any Illinois cities add their own deposit rules?
Chicago's RLTO (Muni. Code 5-12-080 and 5-12-081) layers on: a receipt for the deposit, holding it in a federally insured interest-bearing account at an Illinois institution without commingling, and interest at a city-set annual rate when the deposit is held more than 6 months, with a two-times-the-deposit penalty plus attorney's fees for violations. Owner-occupied buildings of 6 or fewer units are generally exempt from the RLTO. Suburban Cook County's RTLO (Sec. 42-811, effective 2021, Chicago excluded) caps deposits at 1.5 months' rent and gives the tenant the right to pay the portion above one month in installments.
The deposit paperwork is the part that gets lost. PropManager keeps the deposit on the lease, the move-out itemization with the tenant's file, and the refund in the ledger, so the record exists before a dispute does.Sources
765 ILCS 710/1; 765 ILCS 715/1-2. Source: https://www.ilga.gov/Legislation/ILCS/Articles?ActID=2202&ChapterID=62. Verified 2026-08-06.
General information, not legal advice. Check your own lease and any city or county ordinance before you rely on it.