A few months into prime apartment renting season seems like a good time to review an Illinois statute relating to landlords and renters alike: the Security Deposit Return Act (765 ILCS 710/1). Security deposits were designed as a safety net for landlords to protect themselves in the event the renter causes damage to the apartment; however, security deposits can become a point of contention between renters and landlords. This Statute applies to landlords who have 5 or more rental units and collect security deposits from their renters. It is a fairly straightforward statute governing how landlords are to treat security deposits after the termination of a lease.
According to the Security Deposit Return Act, the landlord must return the security deposit to the renters within 30 days after the termination of the lease, assuming there is no damage which would result in deductions from the security deposit. In the event repairs need to be made, the landlord must, again within 30 days of the termination of the lease, either return the remaining amount of the security deposit to the renter along with copies of receipts for any repair work, or provide an estimate for work to be done to the renter and return the remainder of the deposit to the renter. In any event, the landlord is prohibited from keeping the security deposit for any longer than 45 days after the termination of the lease.
If a landlord violates this Act (namely, fails to return the security deposit and receipts within the time frame discussed above), the renter may file suit against the landlord in order to have the security deposit returned. A landlord who is found to have violated this Act may also be required to pay the attorney's fees the renter incurred in pursuing his or her lawsuit. This can be very expensive for the landlord.
The lesson to be learned from this Act is this: If you're a renter, know your rights. If you're a landlord, make sure you return that security deposit and receipts within 30 days.
