Security Deposit in Illinois
State-specific overview · Property & Real Estate
Landlords must return deposits within 30–45 days and pay interest; deposits over $20,000 require a separate account.
How Illinois treats Security Deposit
Illinois requires landlords to return security deposits within 30 to 45 days of lease termination, depending on whether deductions are made, and to provide an itemized list of any deductions. Landlords must pay interest on deposits at a rate set by state law, generally around 5% annually. Deposits exceeding $20,000 must be held in a separate interest-bearing account. If a landlord wrongfully withholds a deposit, the tenant may recover the deposit plus damages up to twice the wrongfully withheld amount.
The general definition of Security Deposit
Money a tenant pays upfront to a landlord as a guarantee against damage or unpaid rent.
A security deposit is cash that a tenant gives to a landlord at the start of a lease, held as insurance against property damage or unpaid rent. The landlord must keep this money in a separate account and return it to the tenant when the lease ends, minus any deductions for legitimate damages or unpaid bills. Most states have strict rules about how quickly landlords must return deposits (often 30–45 days) and require them to itemize any deductions. If a landlord wrongfully keeps the deposit, the tenant can sue for the full amount plus penalties.
Read the full Security Deposit entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Illinois.