Illinois Security Deposit Interest Act

Illinois Security Deposit Return Act

     * Only At Complexes with 25 or more apartments

Cases

Kutcher v. Barry Realty, Inc. (1st Dist. 2005)

Wang v. Williams (5th Dist. 2003)

Dickson v. W. Koke Mill Vill. P'Ship (4th Dist. 2002)

Haywood v. Superior Bank F S B (1st Dist. 1993)

Munroe v. Brower Realty (1st Dist. 1990)

Gittleman v. Create (1st Dist. 1989)

Cook v. University Plaza (2nd Dist. 1981)

     * Only At Buildings with 5 or more apartments

Cases

Hoffman v. Altamore   (2nd Dist. 2004)

Ikari v. Mason Props. (2nd Dist. 2000)

Wilson v. Yu (1st Dist. 1988)

Evans v. International Village Apartments (1st Dist. 1988)

Tobin v. McClure (3rd Dist. 1986)

Mallah v. Barkauskas (2nd Dist. 1985)

Hayward v. Tinervin (4th Dist. 1984)

     Many Illinois renters are not protected by any rules for security deposit return.

     These are renters outside Chicago, Oak Park, Evanston, DeKalb, and Urbana who rent at buildings with five or fewer units.  These unprotected tenants may still sue their landlords for return of wrongfully withheld security deposit, but are not entitled to double-damages or attorney fees even if they win. 

     But for Illinois renters at buildings with 5 or more units, the Illinois Security Deposit Return Act applies, which may award damages equal to double the amount wrongfully withheld plus attorney fees. 

     For Illinois renters at apartment complexes with 25 or more units, the Illinois Security Deposit Interest Act applies, which may award damages equal to the whole security deposit plus attorney fees, even if the amount at issue is less than ten cents.

SECURITY DEPOSIT INTEREST ACT

Illinois Compiled Statutes Chapter 765

Section 715/1 Interest to be paid by lessor on security deposits - - Rate

     A lessor of residential real property, containing 25 or more units in either a single building or a complex of buildings located on contiguous parcels of real property, who receives a security deposit from a lessee to secure the payment of rent or compensation for damage to property shall pay interest to the lessee computed from the date of the deposit at a rate equal to the interest paid by the largest commercial bank, as measured by total assets, having its main banking premises in this State on minimum deposit passbook savings accounts as of December 31 of the calendar year immediately preceding the inception of the rental agreement on any deposit held by the lessor for more than 6 months.

Section 715/2 Time for payment - - Penalty for refusal to pay

     The lessor shall, within 30 days after the end of each 12 month rental period, pay to the lessee any interest, by cash or credit to be applied to rent due, except when the lessee is in default under the terms of the lease. A lessor who willfully fails or refuses to pay the interest required by this Act shall, upon a finding by a circuit court that he has willfully failed or refused to pay, be liable for an amount equal to the amount of the security deposit, together with court costs and reasonable attorneys fees.

Section 715/3 Application of Act

     This Act does not apply to any deposit made with respect to public housing.