First Month, Last Month, Fees and Other Up-Front Charges in Illinois
Before you move in you may be asked for a deposit, the first and last month’s rent and fees. Here is how Illinois’s deposit Act treats each payment and what to get in writing.
Is the first month’s rent a security deposit?
No. The Act covers a deposit received to secure the payment of rent or to compensate for damage to the premises (765 ILCS 710/1(a)). The first month’s rent is simply rent and is outside it.
Can a landlord ask for last month’s rent in advance?
The statewide Act does not forbid it. Prepaid rent is rent, not a deposit, so ask for a written receipt that says what the payment is for and whether it is credited to the last month; local ordinances may have their own rules about prepaid rent.
What about application fees?
The Act does not address application or screening fees, and the sections we read set no cap on them. Ask what a fee covers and whether any part is refundable, and keep the receipt.
What about late fees?
The Act does not set a late fee. Check your lease and any local ordinance before agreeing to one. Nonpayment of rent is handled by the 5-day demand: see the Illinois eviction notice calculator.
Where is the deposit held?
The Act does not require a separate account, but a separate Act is reported to require interest from landlords with 25 or more units. Ask the landlord in writing where the money is and whether interest is owed.
A pre-signing checklist
Ask for the total move-in cost in writing; ask what each line is for and which are refundable; add every payment held as security using the Illinois security deposit limit calculator; get a receipt for each payment; and photograph the unit.
How common up-front payments are treated
| Payment | Treatment | Return |
|---|---|---|
| First month’s rent | Rent | Outside the deposit rules |
| Security deposit | Held to secure rent or compensate for damage | Statement in 30 days or refund in 45 |
| Last month in advance | Prepaid rent | Ask for a receipt that says so |
| Application fee | Not addressed in the sections we read | Ask for a receipt |
Why labels matter less than money
The deposit Act looks at what the money is for: a deposit received to secure the payment of rent or to compensate for damage to the premises. A tenant who pays a charge the landlord calls a fee should ask whether any part will be spent on a specific cost and whether any unspent part will come back, and keep the answer in writing.
Escrow and interest
The state Act does not require a separate account. A separate Act is reported to require interest from landlords of 25 or more units on deposits held six months or more. Ask the landlord in writing where the deposit is held and whether interest is owed, and keep the answer with the lease.
Renewals and rent increases
The deposit Act does not say what happens to a deposit when a lease renews or the rent rises. Ask the landlord in writing whether the deposit carries forward and whether more is wanted, and keep the answer. If the lease or a city ordinance caps what may be asked, point to it.
Keep every receipt
Ask for a written receipt for each payment, with what it is for, and keep it with the lease so you can show later what you paid and when.
Where to get help
Legal aid and the circuit clerk can explain whether a charge is allowed. Bring the lease, every receipt and the landlord’s written request.
Frequently asked questions
Is the first month’s rent part of the deposit in Illinois?
No. It is rent.
Can a landlord ask for last month’s rent in advance?
The statewide Act does not forbid it; check local rules.
Is there a cap on application fees in Illinois?
The sections we read set none.
Is there a cap on late fees?
The Act sets none; the lease and local rules control.
Must my deposit sit in a separate account?
The Act does not require it; ask in writing.
Official sources
A local landlord-tenant attorney can review your situation — many offer a free consultation.
This is general information, not legal advice. It is based on the cited Illinois statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Illinois attorney.