Peoria has no separate local security deposit ordinance; the Illinois Security Deposit Return Act (765 ILCS 710/) controls. Landlords of buildings with 5 or more dwelling units must return the deposit within 45 days of the tenant vacating, provide an itemized statement of damage within 30 days, and may not deduct for normal wear and tear. Buildings with 25 or more units must also pay interest under the Illinois Security Deposit Interest Act (765 ILCS 715/). Violations expose the landlord to double the deposit amount plus attorneys' fees.
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.
A Peoria landlord with 5 or more units who fails to comply with 765 ILCS 710/ is liable to the tenant for damages equal to twice the amount of the security deposit due, plus court costs and reasonable attorneys' fees. The 'damages' remedy is in addition to return of any portion of the deposit improperly withheld. Failure to deliver the itemized statement within 30 days converts the entire deposit into property of the tenant by operation of statute; the landlord cannot then withhold any portion regardless of actual damage. Buildings with 25 or more units that fail to pay required interest under 765 ILCS 715/ are similarly liable for damages of an amount equal to the security deposit plus court costs and attorneys' fees. Wrongful withholding can also be pleaded as a counterclaim in any eviction action filed against the tenant. Bad-faith withholding (or commingling that misleads a tenant about deposit security) may support additional common-law fraud or breach of contract claims in Peoria County Circuit Court.
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