Libby Andrews

Libby Andrews

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Residential Landlord and Tenant Ordinance Rate of Interest on Security Deposits


 

Make sure you know the facts or you could lose your security deposit as a tenant or be held accountable as a Landlord!

  • A landlord must give a tenant a receipt for a security deposit that includes the owner’s name,
    the date it was received and a description of the dwelling unit. The receipt must be signed by the
    person accepting the security deposit.

  • A landlord must pay interest each year on security deposits (eff. 11-6-86) and prepaid rent (eff.
    1-1-92) held more than six months.

  • The rate of interest that a landlord must pay is set each year by the City Comptroller. (eff. 7-1-97)

  • Before a landlord can deduct expenses for damages from the security deposit, the landlord must
    provide the tenant with an itemized statement of the damages within 30 days of the date the
    tenant vacates the dwelling unit.

  • Within 45 days of the date the tenant vacates the dwelling unit, a landlord must return all security
    deposit and required interest, if any, minus unpaid rent and expenses for damages.

  • In the event of fire, a landlord must return all security deposit and required interest, if any, minusunpaid rent and expenses for damages, within seven days from the date that the tenant providesnotice of termination of the rental agreement. (eff. l-l-92)

  • Under Chapter 5-12 of the Municipal Code of Chicago sections 5-12-081 and 5-12-082, the City Comptroller shall calculate and announce on the first business day of each year, the rate of interest to be paid on security deposits.

  • As of January 1, 2018 based on information from the City Comptroller’s Office, the interest rate to be paid on security deposits is 0.01%. The rate is based upon the average of the rates of interest of the following types of accounts at Chase Bank, which is the commercial bank having the most branches located in the City of Chicago: Savings Account 0.01 percent, insured Money Market 0.01 percent and Six-month Certificate of Deposit (based on a deposit of $1,000) 0.01 percent.


Security Deposit Interest Rate

Jan. 1-Dec. 31, 2018 0.01%
2017 0.01%
2016 0.01%
2015 0.01%
2014 0.013%
2013 0.023%
2012 0.057%
2011 0.073%
2010 0.073%
2009 0.12%
2008 1.26%
2007 1.68%
2006 1.71%
2005 1.01%
2004 0.42%
2003 0.52%
2002 0.83%
2001 3.10%
2000 2.71%
1999 2.63%
1998 not on ChicagoDPD table
1997 3.38 %


For a copy of the complete Residential Landlord and Tenant Ordinance, visit the Office of the City
Clerk, Room 107, City Hall, 121 N. LaSalle St. For a copy of the Residential Landlord and Tenant
Ordinance Summary, visit the Department of Planning and Development, City Hall, Room 1000.
Department of Planning & Development | 121 N. LaSalle St. | Room 1000 | Chicago, Illinois 60602 | dpd@cityofchicago.org
@ChicagoDPD