Chicago Residential Security Deposit Rules and Rates

Security Deposit Interest Rates and Rules Under the

City of Chicago Residential Landlord and Tenant Ordinance

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The landlord must give a tenant a receipt for the security deposit that includes the owner's name, the date it was received and a description of the dwelling unit. The receipt must be signed by the person accepting the security deposit.

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The landlord must pay interest each year on security deposits (eff. 11-6-86) and prepaid rent (eff. 1-1-92) held more than six months.

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The rate of interest that the landlord must pay is set each year by the City Comptroller (eff. 7-1-97).

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Before the landlord can deduct expenses for damages from the security deposit, the landlord must provide the tenant with an itemized statement of the damages within 30 days of the date the tenant vacates the dwelling unit.

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Within 45 days of the date the tenant vacates the dwelling unit, the landlord must return all of the security deposit and required interest, if any, minus unpaid rent and expenses for damages.

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In the event of fire, the landlord must return all security deposit and required interest, if any, minus unpaid rent and expenses for damages, within seven days from the date that the tenant provides notice of termination of the rental agreement (eff. 1-1-92).

The rate of interest is ... based upon the average of the rates of interest, as of December 31, 2007, of the following types of accounts at LaSalle Bank N.A., which is the commercial bank having its main branch located in the City of Chicago and having the largest total asset value: Passbook Savings 0.35 percent; Insured Money Market 0.40 percent; and Six-month Certificate of Deposit (based on a deposit of $2,000) 3.02 percent.

Historical Security Deposit Interest Rates:

Current Rate - January 1, 2011 to December 31, 2011 .073%*

January 1, 2010 to December 31, 2010 .073%**

January 1, 2009 to December 31, 2009 .12%***

January 1, 2008 through December 31, 2008

1.26%

January 1, 2007 through December 31, 2007

1.68%

January 1, 2006 through December 31, 2006

1.71%

January 1, 2005 through December 31, 2005

1.01%

January 1, 2004 through December 31, 2004

0.42 %

January 1, 2003 through December 31, 2003

0.52 %

January 1, 2002 through December 31, 2002:

0.83 %

January 1, 2001 through December 31, 2001:

3.10 %

January 1, 2000 through December 31, 2000:

2.71 %

January 1, 1999 through December 31, 1999:

2.63 %

January 1, 1998 through December 31, 1998:

3.38 %

July 1, 1997 through December 31, 1997:

3.42 %

Before July 1, 1997:

5.00 %

*Please note that for buildings containing 25 units or more, the Illinois state rate of .195% is applicable

**Please note that for buildings containing 25 units or more, the Illinois state rate of .093% is applicable

***Please note that for buildings containing 25 units or more, the Illinois state rate of .25% is applicable