Chicago landlord security deposit

For landlords who are subject to RLTO, accepting a security deposit means the landlord must literally cross a minefield of possible penalties. Security deposits must be held in a federally insured interest bearing account in an Illinois financial institution.

Security deposits must be in an account completely separate from and not commingled with any funds of the landlord. The name and address of the financial institution holding the deposit must be conspicuously disclosed in the written rental agreement signed by the tenant or if there is not a written rental agreement, by a written notice given to the tenant within 14 days of receipt of the deposit.

The tenant must be given a receipt when the deposit is received which specifies the amount of the deposit, the name of the person accepting the deposit, and if that person is an agent, the name of the landlord, the date of receipt and a description of the dwelling unit rented. If a security deposit is retained for more than six months, the landlord must pay interest on the security deposit, at the rate specified by the Chicago Comptroller each year, within 30 days after the end of each anniversary of the beginning of the lease term.

When the tenant vacates the dwelling unit, the landlord is required to return the security deposit within 45 days after the tenant has vacated.

The landlord may deduct from the returned deposit any unpaid rent and a reasonable amount to repair damages to the unit. This rate is based upon the average of the rates of interest, as of Dec.

During December of each year, the city comptroller shall review the status of banks within the city and interest rates on savings accounts, insured money market accounts and six 6 month certificates of deposit at commercial banks located within the city.

On the first business day of each year, the city comptroller shall announce the rates of interest, as of the last business day of the prior month, on savings accounts, insured money market accounts and six 6 month certificates of deposit at the commercial bank having the most number of branches located within the city. The rates for money market accounts and for certificates of deposit shall be based on the minimum deposits for such investments.

The comptroller shall calculate and announce the average of the three rates. The average of these rates so announced by the comptroller shall be the rate of interest on security deposits under rental agreements governed by this chapter and made or renewed after the most recent announcement.

A bilingaul flyer of this information is also available. City Hall N. LaSalle St. Room Chicago, IL Hours: a. Email us at DOH cityofchicago.

An official website of the City of Chicago Here's how you know. The tenant should sign the receipt. If the tenant chooses to pay via electronic transfer, the landlord must provide them with an electronic or printed receipt with the same information. Landlords can deduct unpaid rent and property damage from security deposits, but they have to do so within a certain time frame. For property damage, the landlord must give the tenant a statement of damages, list of the cost of repairs plus paid receipts within 30 days of the tenants vacating.

If the landlord cannot follow this time frame, they must return the total security deposit, plus interest accrued, within 45 days. Landlords are beginning to sidestep the security ordinance issues by creating non-refundable move-in fees.

Courts have interpreted what factors tend to make a non-refundable move in fee legal. T hese factors include the fee being less than half the monthly rent and clearly labelled in writing as a non-refundable fee.