Chicago's RLTO sets one of the strictest security deposit regimes in the country. Deposits cannot exceed two months' rent, must earn published interest paid each year, and require detailed written receipts and strict separate-account handling.
MCC 5-12-080 requires landlords to hold deposits in a federally insured Illinois bank account separate from owner funds, give a written receipt naming the bank, and pay interest at the city-published rate within 30 days after each 12-month period. The 2024 city rate is approximately 0.01 percent for savings deposits. After move-out the landlord has 30 days to return the deposit, or 30 days to provide an itemized list of damages plus 30 more days to deliver remaining funds. Violations let the tenant recover two times the deposit plus interest, attorney fees, and court costs. Foreclosure, sale, or owner change does not extinguish liability — successor owners assume the deposit obligation under 5-12-080(e).
Holding deposits in personal accounts, missing the interest payment, missing the 30-day return, or commingling exposes the landlord to two times the deposit plus interest, attorney fees, and statutory damages.
Chicago, IL
Chicago bars landlord retaliation under RLTO MCC 5-12-150 and layers Cook County's Just Housing Amendment to limit criminal-record screening. Tenants asserti...
Chicago, IL
Chicago does not have a formal just cause eviction ordinance, but the RLTO (MCC 5-12) provides substantial eviction protections including anti-retaliation pr...
Chicago, IL
The Chicago RLTO (Section 5-12-070) and the Chicago Heat Ordinance establish strict habitability standards. Landlords must maintain 68 degrees F from 8:30 AM...
See how Chicago's security deposit rules rules stack up against other locations.
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