Mount Prospect Security Deposit - When the Landlord Needs to Give Interest?
If a tenant lives in Mount Prospect and the Mount Prospect Residential Landlord and Tenant Regulations apply, the landlord needs to follow certain rules when the tenant pays a security deposit.
When does a tenant's security deposit start to earn interest?
If a tenant lives in a building with twenty-four (24) units or fewer, the security deposit does NOT earn interest.
If a tenant lives in a building with twenty-five (25) or more units, the landlord must pay the tenant any interest within 30 days after the end of each 12-month period by cash OR credit to the rent due.
- The interest can be paid by cash or credit applied to the rent due.
- If the tenant owes rent, then the landlord does not need to give interest.
How much interest does the landlord need to pay?
It depends on the year and the rate that the State of Illinois sets. For 2022, 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.
The above article provides information about legal issues but is not the same as legal advice. Legal advice is when a lawyer applies the law to your specific situation. The information in this article does not replace the advice or representation of a licensed attorney. Law Center for Better Housing cannot guarantee the accuracy or completeness of the information in this article and is not responsible for any consequences that may result from using it. You should consult with a licensed attorney to ensure the information in this article is appropriate for your specific situation. Using the information in this article does not create a relationship between Law Center for Better Housing and you as your attorney