Chicago Security Deposit Law: A Renter's Guide
Chicago's RLTO is one of the strictest deposit laws in the country. Landlords must pay interest every year, hold the deposit in a separate account, and follow detailed paperwork rules. Breaking almost any of them can cost the landlord twice the deposit.
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Check my deadlineLocal law
Chicago Residential Landlord and Tenant Ordinance (RLTO), Municipal Code §§ 5-12-080 to 5-12-082
Illinois law also applies. See the Illinois security deposit guide for the statewide rules.
Which rentals are covered
Most rentals in Chicago. The main exception is an owner-occupied building with six or fewer units. Hotels and short stays, dormitories, shelters, and owner-occupied condos and co-ops are also excluded.
How much a landlord can charge
Neither Chicago nor Illinois caps the amount of the deposit.
Interest on your deposit
Landlords must pay interest each year on deposits and prepaid rent held more than six months, at the rate the City Comptroller sets each January. It can be paid in cash or credited toward rent.
Getting your deposit back
The landlord must return the deposit, with interest, within 45 days after you move out. Before deducting anything for damage, the landlord must give you an itemized statement within 30 days after you move out, with the estimated or actual cost of each repair and copies of paid receipts.
Other Chicago rules
- The landlord must give you a receipt for the deposit (an electronic receipt is allowed for electronic payments).
- The deposit must be held in a federally insured, interest-bearing account in an Illinois bank, separate from the landlord's own money. The landlord must tell you in writing which bank within 14 days of receiving the deposit.
- The landlord must attach the City's RLTO summary to the lease.
Penalties
If the landlord fails to follow the deposit rules, the tenant is awarded twice the amount of the deposit, plus interest. The RLTO also lets a tenant who wins recover reasonable attorney fees.
Taking your landlord to small claims court
If your landlord won't pay after a written demand, you can sue in small claims court (Circuit Court, small claims) for up to $10,000. Filing fee: About $40 to $200 outside Cook County; higher in Cook County. Confirm the current fee with the court clerk. More on Illinois small claims.
Chicago security deposit questions
How much can a landlord charge for a security deposit in Chicago?
Neither Chicago nor Illinois caps the amount of the deposit.
Do Chicago landlords have to pay interest on security deposits?
Landlords must pay interest each year on deposits and prepaid rent held more than six months, at the rate the City Comptroller sets each January. It can be paid in cash or credited toward rent.
How long does a Chicago landlord have to return a security deposit?
The landlord must return the deposit, with interest, within 45 days after you move out. Before deducting anything for damage, the landlord must give you an itemized statement within 30 days after you move out, with the estimated or actual cost of each repair and copies of paid receipts.
What is the penalty if a Chicago landlord keeps a deposit wrongfully?
If the landlord fails to follow the deposit rules, the tenant is awarded twice the amount of the deposit, plus interest. The RLTO also lets a tenant who wins recover reasonable attorney fees.
Last reviewed October 23, 2026. Sources: City of Chicago: RLTO summary (PDF); City of Chicago: Residential Landlord and Tenant Ordinance. This page is general information, not legal advice. See our terms of use.