Chicago (RLTO) Security Deposit - When the Building Transfers Ownership

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. 

What happens to the security deposit when there's a new landlord?

If there is a new owner (after foreclosure or the landlord sells the building), the tenant might be worried about getting back their security deposit. But don't worry, the new landlord (called the "successor landlord") is responsible for returning the security deposit when the lease is up.

Within two weeks of taking over, the new landlord must tell the tenant in writing that they have the tenant's security deposit or prepaid rent. They also have to give the tenant their contact information (name, business address, business telephone number).

The old landlord is held responsible for returning the security deposit back until it is transferred to the new landlord. The old landlord must notify the tenant in writing about the transfer and provide the new landlord's contact information (name, business address, business telephone number) within ten days. 

What happens if the landlords didn't transfer the security deposit correctly or didn't notify the tenant?

If the old landlord didn't notify the tenant of the transfer or new landlord's contact info, then the old landlord can still be held responsible for violating the law. 

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. 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.

The tenant has two years to sue the landlord for the violation. The 2-year countdown starts on the day that the violation happens.