Illinois has no statewide cap on how much you can collect as a security deposit, but it is strict about how you give it back. The Security Deposit Return Act (765 ILCS 710/1) gives you 30 days to send an itemized statement of damage with receipts, or 45 days to return the full deposit. For decades the Act covered only buildings with five or more units, and a lot of landlords, templates and guides still say so. That changed on January 1, 2024: P.A. 103-224 struck the unit threshold, so the rule now applies to every residential landlord in Illinois, including the owner of one condo or a two-flat.
If a tenant moved out on August 31, your itemized statement is due September 30 and the full-refund deadline is October 15. Here's how the rule works.
The two deadlines
765 ILCS 710/1(a) says a landlord may not withhold any part of the deposit for property damage unless, within 30 days, the tenant receives:
- an itemized statement of the damage the tenant allegedly caused,
- the estimated or actual cost of repairing or replacing each item, and
- the paid receipts (or copies) for the work.
If you send no statement, you must return the deposit in full within 45 days after the tenant vacates.
Missing the 30-day window doesn't just make you late. It takes away your ability to deduct for damage. The real choice on day 30 is "itemize with paper" or "refund in full within 45 days."
When the clock starts
The 30-day itemization clock runs from the later of two dates: the day the tenant vacated, or the day their right of possession ended. Suppose a tenant hands back the keys on August 25 on a lease that runs through August 31. The itemization deadline is counted from August 31 (September 30). But the 45-day full-refund clock runs from the day they vacated, so it lands on October 9. Put both dates on your calendar the day the keys come back.
"Every landlord" since 2024
Before P.A. 103-224, section 1 applied to "a lessor of residential real property, containing 5 or more units." Owners of single-family homes, condos, two-flats and four-flats were outside the statute, with their deposit returns governed by the lease and general contract law instead of fixed deadlines.
The amendment deleted those five words, effective January 1, 2024. Section 1 now reads "a lessor of residential real property who has received a security deposit." There is no size exemption. If your lease or your process still says the 30/45-day rule "does not apply to buildings with fewer than five units," it is out of date.
How to deliver the statement
The statute lists three ways to deliver it:
- personal delivery,
- postmarked mail to the tenant's last known address, or
- email to a verified email address the tenant provided.
Our free deposit return letter generator drafts the itemized letter; attach your receipts. Keep proof of whichever delivery method you use. The postmark or the sent email is what shows you met day 30. If the tenant never gives you a mailing or email address, the statute protects you: you are not liable for damages or penalties caused by their failure to provide one. A good lease makes giving a forwarding address an explicit move-out duty.
Receipts, estimates and your own labor
Three details catch landlords out:
- Estimates are allowed, but receipts must follow. If your statement gives estimated costs, you must send the paid receipts (or copies) within 30 days after the statement.
- No receipts through no fault of yours? 710/1(b) lets you send an itemized cost list, any other evidence of the cost, and a verified statement explaining why the receipts can't be produced.
- Your own labor counts. If you do the repair yourself, you may include the reasonable cost of your labor.
Normal wear and tear is never deductible. The statute's focus is damage the tenant caused beyond it.
Costs written into the lease
The current statute adds a tool most landlords haven't used. If your written lease states a dollar cost for cleaning, repairing or replacing a specific component of the unit or building, you may withhold that amount. The cost must be for damage beyond normal wear and tear and reasonable to restore the unit to its starting condition. Your itemized statement must reference the lease amount and attach a copy of that part of the lease. Anything not priced in the lease still needs receipts.
The penalty: twice the deposit
Under 710/1(c), a landlord who refuses to supply the itemized statement, or supplies it in bad faith, and then fails to return the deposit on time owes twice the amount of the deposit due, plus court costs and reasonable attorney's fees. Fee-shifting is what makes small deposit disputes worth a lawyer's time, so treat the deadlines as real.
Interest: only at 25+ units
The separate Security Deposit Interest Act (765 ILCS 715/1) still has a size threshold. It applies only to landlords of properties with 25 or more units, in one building or a complex on contiguous parcels, and only to deposits held more than six months. The rate is what the largest commercial bank headquartered in Illinois pays on minimum-deposit passbook savings as of December 31 before the lease began. Under 715/2, you pay accumulated interest of $5 or more within 30 days after each 12-month rental period, in cash or as a rent credit, and all remaining interest at the end of the tenancy. A willful failure costs an amount equal to the whole deposit, plus costs and attorney's fees.
Chicago and suburban Cook County add more
Local ordinances sit on top of the state Act. If you rent in the city or the county, both sets of rules apply to you.
| Illinois (every landlord) | Chicago RLTO | Suburban Cook County RTLO | |
|---|---|---|---|
| Deposit cap | None | None | 1.5× monthly rent |
| Itemize damage | 30 days, with receipts | 30 days, with receipts | 30 days |
| Full return | 45 days | 45 days | 30 days |
| Where it's held | Not regulated | Federally insured Illinois account, disclosed in the lease | Illinois financial institution named in the lease |
| Interest | 25+ units, after 6 months | From day one, at the Comptroller's rate (0.01% for 2026) | — |
| Penalty | 2× deposit + fees (bad faith) | 2× deposit + interest, for any handling violation | 2× deposit + fees |
The Chicago penalty is the one to fear. Under Chi. Mun. Code § 5-12-080(f), any violation of the deposit rules, even a missing receipt or an account not disclosed in the lease, entitles the tenant to two times the deposit plus interest, and the RLTO shifts attorney's fees too. Our Cook County & Chicago lease rules guide covers both ordinances clause by clause.
Common mistakes
Still using the 5-unit rule. Since January 1, 2024 there is no small-landlord exemption from the 30/45-day deadlines.
Mailing the statement without receipts. The 30-day statement needs paid receipts attached. With estimates, the receipts follow within 30 more days.
Counting from the wrong day. Itemization runs from the later of move-out or the end of possession; the full refund runs from move-out.
Deducting for wear and tear. Faded paint and ordinary carpet wear are the cost of renting, not damage.
Selling the building and forgetting the deposits. Under 710/1.1, a buyer becomes liable for the tenants' deposits and statutory interest, and the seller stays jointly liable. Transfer the deposits and the records at closing.
A well-drafted lease sets all of this up before move-in. Build an Illinois lease for $29 one-time. It prints the statewide 30/45-day return clause for every building size, the forwarding-address duty, the 25+ unit interest clause when it applies, and the Chicago RLTO and Cook County RTLO deposit terms when you toggle them on. For other states, see our security deposit laws by state comparison, or start with the security deposit glossary entry.
Statutory references
- 765 ILCS 710/1 — 30-day itemized statement with receipts, or full return in 45 days; delivery by hand, postmarked mail or verified email; lease-specified costs; 710/1(c) 2× deposit + costs + fees. Official text
- P.A. 103-224 — removed the "5 or more units" threshold, effective January 1, 2024. Public Act
- 765 ILCS 710/1.1 — buyer of the property liable for existing deposits; seller jointly liable.
- 765 ILCS 715/1–2 — deposit interest at 25+ units for deposits held over 6 months; annual payment; willful failure → amount equal to the deposit. Official text
- Chi. Mun. Code § 5-12-080 — Chicago RLTO deposit account, receipt, interest, 30/45-day return; § 5-12-080(f) 2× deposit + interest. City of Chicago — deposit interest rates
- Cook County Code § 42-811 — suburban Cook County RTLO deposit cap, 30-day return, and § 42-811(M) 2× deposit + attorney's fees.