Author: Land of Lincoln Legal Assistance Foundation
Last updated: December 2004

When you rent a house or apartment, you will have to pay an amount of money for a security or damage deposit. This money will be held by the landlord to make sure you pay rent, any property damage or other charges.

The law limits the amount of the security deposit to only one month's rent if you live in a mobile home park in which the landlord rents five or more trailers. There are also limits on the amount of a security deposit in public housing or subsidized housing. Otherwise the law does not limit the amount of a security deposit.

Return of the Deposit

Should I get a receipt from my landlord when I pay my security deposit?

You should get a written receipt to show that you paid and keep it in a safe place.

Do I have the right to the return of the security deposit?

You have the right to the return of the security deposit when you move out of the house.

Can the landlord keep my security deposit?

The landlord can keep portions of your security deposit for any rent due or for the costs of damages that were caused by you, your family or a guest. Damages that were caused by normal wear and tear cannot be taken out of the deposit.

You are expected to clean the residence before you leave and should leave it in the same condition or better than when you moved in.

How do I get my security deposit back after I move?

If you do not owe the landlord any money and you do not receive your deposit back within 30 days after moving out, you should send a written demand letter by certified mail requesting the return of the deposit. Keep a copy of the letter.

If the landlord does not return your security deposit or provide you a statement as to charges you owe, you may then file a small claims court case in the county where the house was located or where the landlord lives.

Apartment Buildings of More than Four Apartments

Does the landlord have to tell me if he/she intends to keep portions of my security deposit?

If you live in a building with more than four apartments, your landlord must send you an itemized list of any amount subtracted from your deposit.

If the amount subtracted on the list is less than the total deposit you paid, the landlord should send the difference. You are required to leave the landlord your new address.

When should the landlord tell me about any amount he/she intends to keep?

If the landlord does not give you the list of deductions within 30 days of the date you move out, the landlord will not be allowed to charge you for property damages although the landlord may still charge you for unpaid rent or other charges.

What happens if the landlord fails to tell me about any deductions?

If the landlord does not refund your deposit or send you a statement within 45 days after moving out and the landlord has acted in bad faith, the landlord may be liable for double the deposit plus reasonable attorney fees in a court case.

Apartment Buildings of More than 24 Apartments

Do I have the right to receive interest on my security deposit?

If you live in a building with more than 24 apartments which is not public housing, you have the right to receive interest on your security deposit at a rate equal to the interest paid by the largest commercial bank, as measured by total assets, having its main banking premises in this State on minimum deposit passbook savings account as of December 31 of the calendar year immediately preceding the date the rental agreement was entered into on any deposit held by the lessor for more than 6 months.

The interest can be paid within 30 days after the end of each 12-month lease period. 

If the interest is not paid as required by law, the landlord may be liable for the amount of the entire deposit plus court costs and reasonable attorney fees in a court case.