Illinois Residential Lease Agreement
Create an Illinois residential lease agreement that complies with the Security Deposit Return Act (765 ILCS 710) and, for Chicago rentals, the Residential Landlord and Tenant Ordinance (Municipal Code Ch. 5-12).
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Legal Requirements in Illinois
For buildings of 5 or more units, the Security Deposit Return Act (765 ILCS 710) requires an itemized statement of damage within 30 days of vacating and return of the balance within 45 days.
For buildings of 25 or more units, the Security Deposit Interest Act (765 ILCS 715) requires interest on deposits held more than six months at the statutory rate.
Exculpatory clauses that exempt a landlord from liability for its own negligence are void under the Landlord and Tenant Act (765 ILCS 705/1).
Retaliation against tenants is prohibited under the Landlord Retaliation Act (765 ILCS 721), effective January 1, 2025, with a rebuttable presumption of retaliation for adverse action within one year of protected activity.
Chicago rentals are governed by the Residential Landlord and Tenant Ordinance (Municipal Code Ch. 5-12), which requires deposits held in a separate Illinois interest-bearing account, a receipt, interest payments, and return within 45 days.
Chicago landlords must attach the City's RLTO summary and the current security-deposit interest-rate summary to every written lease (Municipal Code 5-12-170).
Key Statutes & Regulations
- Security Deposit Return Act, 765 ILCS 710 (2024)
- Security Deposit Interest Act, 765 ILCS 715 (2024)
- Landlord and Tenant Act, 765 ILCS 705 (2024)
- Landlord Retaliation Act, 765 ILCS 721 (eff. Jan. 1, 2025)
- Chicago Residential Landlord and Tenant Ordinance, Municipal Code Ch. 5-12
Common Pitfalls
- •Assuming the statewide Security Deposit Return Act applies to a small building; the itemized-statement rule only binds lessors of 5 or more units.
- •In Chicago, commingling deposits instead of holding them in a separate Illinois interest-bearing account, triggering the 2x-deposit penalty.
- •Forgetting to attach the required RLTO summary and interest-rate disclosure to a Chicago lease (Municipal Code 5-12-170).
- •Including a void exculpatory clause that purports to waive landlord negligence liability under 765 ILCS 705/1.
Local Terminology
- RLTO
- Chicago's Residential Landlord and Tenant Ordinance (Municipal Code Ch. 5-12), which imposes deposit-handling, interest, and disclosure duties beyond Illinois state law.
- Itemized statement
- The breakdown of deductions a lessor of 5+ units must furnish within 30 days of the tenant vacating under the Security Deposit Return Act (765 ILCS 710).
- Exculpatory clause
- A lease term shifting away landlord liability for negligence, which is void and unenforceable in residential leases under 765 ILCS 705/1.
How Illinois Differs
Illinois has no statewide cap on security deposit amounts, unlike New York or Georgia.
Statewide deposit-return rules apply only to larger buildings (5+ units for returns, 25+ units for interest); smaller landlords fall back on the lease and common law.
Chicago's RLTO adds strict separate-account, receipt, and disclosure duties with a double-deposit penalty for violations under Municipal Code 5-12-080.
The Chicago security-deposit interest rate is set annually by the City Comptroller (0.01% for 2026).
Frequently Asked Questions
Is there a security deposit cap in Illinois?
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No. Illinois imposes no statewide limit on the amount of a residential security deposit, though some municipalities set their own caps. State law instead regulates how deposits are handled and returned: lessors of five or more units must follow the itemized-statement and return timelines in the Security Deposit Return Act (765 ILCS 710).
When must an Illinois landlord return a security deposit?
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For buildings of five or more units, the Security Deposit Return Act (765 ILCS 710) requires an itemized statement of any damage within 30 days of the tenant vacating, with the deposit balance returned within 45 days. In Chicago, the RLTO requires return of the deposit plus interest within 45 days of move-out.
What does Chicago's RLTO require for deposits?
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Chicago's Residential Landlord and Tenant Ordinance (Municipal Code 5-12-080) requires holding deposits in a separate, Illinois-based interest-bearing account, giving the tenant a receipt, paying interest on deposits held over six months, and returning the deposit within 45 days. Violations can make the landlord liable for twice the deposit.
Can an Illinois landlord retaliate against a tenant?
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No. The Landlord Retaliation Act (765 ILCS 721), effective January 1, 2025, prohibits retaliation such as eviction, non-renewal, or rent increases against tenants who report code violations or seek help from a community organization. Adverse action within one year of protected activity is presumed retaliatory.
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