Illinois Deposit Rules: Forwarding Address, Interest and Local Ordinances
The Illinois deposit statute covers buildings with five or more units, and cities such as Chicago add their own rules. Here is how addresses, interest, a sale of the building and a lawsuit work.
Which buildings does the state Act cover?
A lessor of residential real property containing five or more units (765 ILCS 710/1(a)). For a smaller building, the lease, the Landlord and Tenant Act and any local ordinance decide how and when the deposit comes back. Check your city or county, because Chicago and some other places have their own deposit rules.
Why give the landlord an address?
The statement is delivered personally, by postmarked mail to the last known address or by e-mail to a verified address the tenant gave, and if the tenant fails to provide a mailing or e-mail address, the lessor is not liable for damages or penalties as a result (710/1(a)). Send your new address in writing by a method that gives you a dated receipt and keep a copy.
Does a landlord have to pay interest?
Illinois has a separate Security Deposit Interest Act, which reports say applies to landlords with 25 or more units in a building or complex and requires interest to be paid on deposits held for six months or more. This page does not analyze that Act in detail; ask the landlord in writing whether it applies and what rate was paid, and read the Act or ask a licensed Illinois attorney.
What if the building is sold?
The new owner generally takes over the duty to refund the deposit, so keep your receipt and ask the new owner in writing to confirm the amount it holds. Reports on the Act also say the new owner is responsible for the deposit and any interest at the end of the tenancy.
Is there a move-out inspection right?
The state Act does not give tenants a move-out inspection right. Ask the landlord in writing to walk through with you, take dated photographs of every room and keep them with the lease to compare with any later statement.
Where do I sue?
In the circuit court of the county. The Act lets the court award twice the deposit due, with costs and reasonable attorney’s fees, where the lessor refused to supply the statement or acted in bad faith and did not return the deposit (710/1(c)). Ask the circuit clerk about small claims forms, and see the Illinois deposit return deadline calculator.
A worked example of the penalty
A landlord in a ten-unit building keeps $900 of a $1,500 deposit, sends no itemized statement and does not return the deposit within 45 days. If a circuit court finds it refused to supply the statement or acted in bad faith and failed to return the deposit due, it is liable for twice the deposit due, which on these numbers can reach $3,000, with costs and reasonable attorney’s fees.
What to bring to court
Bring the lease, the deposit receipt, your forwarding address and proof you sent it, the landlord’s statement and receipts, your move-in and move-out photographs and a short timeline with the date you vacated. If the statement never came, say so and show the dates; the Act’s penalty turns on whether the landlord refused to supply the statement or acted in bad faith and failed to return the deposit.
Local ordinances
Chicago and some other cities have ordinances that set their own deposit rules, notice periods and penalties, and a building of fewer than five units can be covered by a local rule even if it is outside the state Act. Check the ordinance for your city or county before relying on the state deadlines alone.
Where to get help
Legal aid organizations, the circuit clerk and a licensed Illinois attorney can explain how to bring a deposit claim. Bring the lease, every notice and the dates.
Frequently asked questions
Does Illinois require interest on deposits?
A separate Act reportedly requires it for large buildings; ask in writing.
What if my landlord has only a few units?
The state Act does not apply; check your lease and local rules.
Why give a forwarding address?
So the statement and refund reach you; a landlord is not liable for penalties if you gave no address.
Who owes my deposit if the landlord sells?
The new owner generally takes over the duty.
Where do I sue for my deposit?
In the circuit court of the county.
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.