According to the 2000 US Census, over half of the residents in Chicago are renting for housing rather than owning their living accommodations. Many landlords take advantage of tenants’ lack of knowledge regarding their rights in regards to the return of their security deposits. Illinois issued the Illinois Security Deposit Act, and Chicago has issued a more tenant friendly version entitled the City of Chicago Residential Landlord and Tenant Ordinance. The ordinance applies to all landlord/tenant relationships when the tenants reside in buildings with six or more units.

The Chicago Ordinance defines all aspects of the landlord/tenant relationship. Upon giving the security deposit, the landlord or his agent (e.g. property management company) shall give the tenant a signed receipt showing the amount of such security deposit, the name of the person receiving it and, in the case of the agent, the name of the landlord for whom such security deposit is received, the date on which it is received, and a description of the dwelling. Furthermore, when a tenant has leased from the landlord for one year’s period or longer, the tenant shall receive interest upon their deposit.

Additionally The Chicago Ordinance describes the means by which the security deposit shall be returned. The Chicago Ordinance commands that within 45 days of the termination of the lease, the landlord shall return the security deposit in whole, aside from deductions due to damages or rent due. The repairs made on the unit shall be itemized and delivered to the tenant within 30 days of the termination of the lease so that the tenant can argue the reasonableness of each repair.

In a situation in which the landlord has not complied with the Chicago Ordinance, the tenant will most likely be awarded damages in the amount of double the security deposit, as well as the return of the security deposit and interest on the security deposit. They also could be entitled to their attorney’s fees. It is important for tenants to be aware of their rights in their relationships with their landlords and for landlords to make sure that they are following the laws of both Chicago and Illinois. We found numerous situations where a landlord failed to return a $1,000 or less security deposit and not only had to pay double that amount back to the tenant, but also had to pay tens of thousands of dollars in attorney’s fees to the tenant’s lawyer.