Chicago (RLTO) Security Deposit - Landlord Must Return Security Deposit

If a tenant lives in Chicago and the Chicago Residential Landlord Tenant Ordinance (RLTO) applies, the landlord needs to follow certain rules when the tenant pays a security deposit. 

When does the landlord need to return a security deposit? 

Under the Chicago RLTO, the time limit for the return a security deposit depends on why the tenant moved out.

• The tenant moved out because of a fire or casualty: Landlord must return in 7 days after the tenant moved out
• The tenant moved out for any other reason: Landlord must return in 45 days after the tenant moved out

How much the landlord need to return?

The landlord must return the security deposit plus any interest accrued. The landlord is allowed to deduct from the security deposit for the following:

• Any unpaid rent which was not validly withheld or deducted by following; or
• A reasonable amount necessary to repair any damage caused to the dwelling by the tenant, anyone under the tenant’s control, or anyone in the dwelling with the tenant’s permission.
  • The landlord must deliver or mail to the tenant’s last known address a statement of the alleged damages within 30 days. 
  • The landlord must (1) attach the paid receipts OR (2) give an estimate and follow-up with the paid receipts within 30 days of giving the estimate. 

What happens if the landlord did not return the security deposit?

When a landlord does not follow the law, the landlord is held strictly liable. A tenant may be entitled to damages (twice the security deposit + attorney's fees) when the landlord did not give the tenant a security deposit. The tenant has two years to sue the landlord for the violation. The 2-year countdown starts on the day that the violation happens.

 If a tenant has any questions or concerns about their security deposit, it's best to speak with the landlord or consult with a legal professional.