Peoria, IL Rental Property Rules: Security Deposit Rules (2026)

Residential security deposits in Peoria are governed by Illinois state law, principally the Security Deposit Return Act (765 ILCS 710/) and the Security Deposit Interest Act (765 ILCS 715/). Peoria has not enacted a separate local deposit ordinance. The Security Deposit Return Act applies to landlords who lease residential real property containing 5 or more units; smaller landlords (1 to 4 units) are governed by general contract law and any specific lease terms but are not bound by the statute's procedural deadlines. For covered landlords (5+ units): (1) the landlord must, within 30 days of the tenant's vacate date, furnish an itemized statement of damage allegedly caused to the leased premises and the estimated or actual cost of repair or replacement, supported by paid receipts or estimates; (2) any remaining deposit must be returned within 45 days of the move-out, or the full deposit must be returned if no itemized statement is delivered within the 30-day window; (3) deductions for normal wear and tear, deterioration from ordinary use, or ordinary aging are not permitted. The Security Deposit Interest Act (765 ILCS 715/) applies to buildings with 25 or more units and requires the landlord to pay annual interest at the rate set by the Illinois Department of Financial and Professional Regulation on deposits held longer than six months. Peoria has no rule capping the maximum deposit amount, so the cap is whatever the lease specifies, subject to general unconscionability principles. Landlords must not commingle the deposit with operating funds in violation of any lease term, and must convey deposits to a successor owner upon sale. Source-of-income (Section 8) tenants are protected statewide from discrimination in deposit terms under the Illinois Human Rights Act since 2023.