Oak Park (RTLO) Security Deposit - Interest

If you rent an apartment in Illinois, you may be entitled to interest on your security deposit. The Illinois Security Deposit Interest Act applies to residential buildings with 25 or more unit, even though the local Oak Park Residential Tenant and Landlord Ordinance doesn't specifically address interest.

When Does State Law Apply?

• Property type: Applies to buildings or complexes with 25+ units.
• Deposit length: The security deposit must be held for more than 6 months.
• Exceptions:
  • This law does not apply to public housing.
  • If a tenant lives in a building with twenty-four (24) units or fewer, the security deposit does not earn interest. 

How Is Interest Paid?

• Rate: The interest rate is based on what the largest Illinois bank pays for savings accounts as of December 31 before the lease starts. For 2024, the interest rate is 0.005%. For an interest rate of 0.005% and a $1,000.00 security deposit, a landlord would have to give $0.05 after a 12-month period. 
• Payment schedule:
  • Annually: If the interest is $5 or more for one year, landlords must pay interest within 30 days of the rental anniversary.
  • At the end of the lease: Any remaining unpaid interest must be paid when the lease ends.
  • Payments can be made as cash or as a credit toward your rent.

What Happens If the Landlord Doesn’t Pay?

• If a landlord willfully refuses to pay interest, you can take them to court. If they are found guilty, they may owe:
  • The amount of your security deposit as a penalty.
  • Court costs and attorney’s fees.

If you believe your landlord hasn’t paid the interest they owe, you can speak to a lawyer or file a complaint. Knowing your rights helps protect your finances!