Illinois Security Deposit Demand Letter

Introduction

Key Things to Know

1. 1

   A security deposit demand letter is a written demand an Illinois tenant sends a former landlord to recover a deposit withheld past the state deadline, before taking the landlord to small claims court.

2. 2

   A lessor who keeps any part of the deposit for property damage must furnish a written itemized statement of the damage and cost of repair within 30 days of the date the tenant vacated; if no such statement and receipts are furnished as required, the lessor must return the full deposit within 45 days (765 ILCS 710/1(a)).

3. 3

   The itemized statement must attach the paid receipts, or copies, for each repair or replacement; if the lessor gives an estimated cost, the paid receipts must follow within 30 days of the estimate (765 ILCS 710/1(a), 710/1(b)).

4. 4

   A lessor may withhold only for the cost of repairing or replacing property damage, the reasonable cost of the lessor's own labor for those repairs, and any cost a written lease specifies for damage beyond normal wear and tear (765 ILCS 710/1(a)).

5. 5

   On a finding that the lessor refused to supply the required itemized statement, or supplied it in bad faith, and failed or refused to return the deposit within the time limits, a court may award twice the amount of the deposit due, plus court costs and reasonable attorney's fees (765 ILCS 710/1(c)).

6. 6

   For a residential property with 25 or more units, a separate Illinois law requires the lessor to pay interest on a deposit held more than 6 months, and a willful failure to pay that interest can equal the amount of the deposit plus court costs and attorney fees (765 ILCS 715/1, 715/2).

7. 7

   If the demand is ignored, an Illinois tenant can sue in small claims court for up to $10,000; the deadline to sue on a written lease is ten years (735 ILCS 5/13-206).

Illinois Requirements for Security Deposit Demand Letter

• 30-Day Itemized Statement Deadline

  An Illinois lessor who keeps any part of the deposit for property damage must furnish a written itemized statement of the damage and the estimated or actual cost of repair within 30 days of the date the tenant vacated (765 ILCS 710/1(a)). Your demand letter should state that this deadline has passed.

• 45-Day Full Return If No Statement

  If the lessor does not furnish the required itemized statement and receipts, the lessor must return the security deposit in full within 45 days of the date the tenant vacated (765 ILCS 710/1(a)). Once 45 days pass with no proper accounting, the whole deposit is due.

• Itemized Statement Must Attach Paid Receipts

  The itemized statement must attach the paid receipts, or copies, for repairing or replacing each item; if the lessor gives an estimated cost, the paid receipts must follow within 30 days of the estimate (765 ILCS 710/1(a), 710/1(b)). Deductions without supporting receipts can be disputed.

• Permitted Deductions

  An Illinois lessor may withhold only for the cost of repairing or replacing property damage, the reasonable cost of the lessor's own labor for those repairs, and any cost a written lease specifies for damage beyond normal wear and tear (765 ILCS 710/1(a)). Lease-specified costs must be reasonable to restore the premises to its condition when the lease began.

• Penalty of Twice the Deposit Plus Attorney Fees

  On a court finding that the lessor refused the required itemized statement, or supplied it in bad faith, and failed or refused to return the deposit within the time limits, the lessor is liable for twice the amount of the deposit due, together with court costs and reasonable attorney's fees (765 ILCS 710/1(c)). The penalty turns on the lessor's conduct, so it is not automatic.

• Interest on Deposits at Larger Properties

  For a residential property with 25 or more units, a separate Illinois law requires the lessor to pay interest on a deposit held more than 6 months, and a willful failure to pay that interest can equal the amount of the deposit plus court costs and reasonable attorney fees (765 ILCS 715/1, 715/2). This applies only to those larger properties.

• Send With Proof of Delivery and a Forwarding Address

  Send the demand to the landlord using a trackable method such as certified mail with return receipt, and provide your forwarding address. Keep a copy of the letter and the delivery record for a later small claims filing.

• Small Claims Limit and Deadline to Sue

  If the demand is ignored, an Illinois small claims action carries a limit of $10,000. The deadline to sue on a written lease is ten years (735 ILCS 5/13-206), though filing promptly after the demand is the practical course.