Evanston (RLTO) Security Deposit - Maximum Amount for a Security Deposit

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

Is there a maximum amount for a security deposit?

Yes. A landlord may NOT receive a security deposit that is greater than 1.5 times one month's rent. 

• If rent is $1,000.00, the maximum security deposit a landlord can receive is $1,500.00. 
• If rent is $2,000.00, the maximum security deposit a landlord can receive is $3,000.00.

How can the landlord collect the security deposit?

The tenant has to pay the security deposit when they first move in or at a different time that the landlord and the tenant agree on.

If the security deposit is more than the amount of one month's rent but less than 1.5 a month's rent, the tenant can choose to pay the extra money all at once when they first pay the security deposit, or they can pay it in smaller amounts over six months.

• If rent is $1,000.00 and the security deposit is $1,500.00, then the tenant can choose to pay the $1,500.00 at one time. Or the tenant can choose to pay the $500.00 (amount more than one month's rent) in equal amounts within the first six months. Then, a tenant must pay at least $83.33 per month ($500/6 months) for the next six months to make sure the full $1,500.00 security deposit is paid.
• If rent is $2,000.00 and the security deposit is $3,000, then the tenant can choose to pay $3,000.00 at one time. Or the tenant can choose to pay the $1,000 (amount more than one month's rent) in equal amounts within the first six months. Then, a tenant must pay at least $166.66 per month ($1000/6 months) for the next six months to make sure the full $3,000.00 security deposit is paid.

A security deposit does NOT start to earn interest until the full amount is received by the landlord.

What if the landlord collected a bigger security deposit?

The Evanston RLTO does not punish a landlord for collecting a bigger 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.