8.1 Illinois Security Deposit Return Act
Key Takeaways
- Effective January 1, 2024, P.A. 103-224 deleted the old "containing 5 or more units" phrase from 765 ILCS 710/1 — current SDRA covers a lessor of residential real property (all residential lessors statewide; no unit-count floor)
- If the landlord withholds any part of the deposit for property damage, an itemized damage statement (with paid receipts or estimates) must go to the tenant within 30 days of vacating / end of possession (whichever is later)
- If the required statement and receipts are not furnished, the landlord must return the deposit in full within 45 days after the tenant vacates
- Statutory damages for refusing the itemized statement (or supplying it in bad faith) and failing to return the deposit due are twice the security deposit due, plus court costs and reasonable attorney's fees
- The repealed 5+ unit threshold appears in outdated prep materials — treat it as history; local ordinances such as Chicago RLTO can still impose stricter deposit, interest, and account rules on top of SDRA
8.1 Illinois Security Deposit Return Act
Quick Answer: Under current 765 ILCS 710/1 (as amended by Public Act 103-224, effective January 1, 2024), the Security Deposit Return Act applies to a lessor of residential real property — meaning all residential lessors statewide, with no unit-count floor. Landlords who deduct for damage must send an itemized statement within 30 days of vacating or end of possession (whichever is later). If they do not properly itemize, they must return the full deposit within 45 days. Wrongful refusal can trigger damages of twice the deposit due, plus court costs and reasonable attorney's fees.
Security deposits are not tip jars for landlords. In Illinois, the Security Deposit Return Act (SDRA), 765 ILCS 710, sets hard procedural rules for when a lessor may withhold deposit money for damage and when the balance must come back to the tenant. Leasing agents do not personally invent firm deposit policy, but they explain move-in/move-out expectations, gather forwarding addresses, and escalate disputes to the sponsoring broker. Missing the statutory clocks is a frequent source of lawsuits — and of exam questions.
Current scope: all residential lessors (P.A. 103-224)
Read the statute as it exists today. Section 765 ILCS 710/1 now reaches "a lessor of residential real property" who has received a security deposit to secure rent or compensate for damage to the leased premises. That language covers single-family homes, duplexes, three-flats, condominiums, and large multifamily buildings alike. There is no remaining statewide unit-count floor in the Return Act's coverage sentence.
Repealed history (do not select as current law): For decades before 2024, the Act expressly applied only to residential property "containing 5 or more units." Outdated outlines, old flashcards, and some practice items still recite that five-unit threshold. Public Act 103-224, effective January 1, 2024, deleted the phrase "containing 5 or more units" from 765 ILCS 710/1. On a current-law question, the correct scope answer is all residential lessors (a lessor of residential real property) — not "buildings with 5 or more units." Know the old rule only so you are not confused by stale prep materials.
In practice, follow the current statute, any stricter local ordinance, and your managing broker's written procedures. A four-unit walk-up and a forty-unit courtyard are both inside SDRA's return and itemization machinery after the 2024 amendment.
Itemized statement within 30 days
A landlord who wants to keep any portion of the deposit as reimbursement for property damage must, within 30 days of the date the tenant vacated the leased premises or the date the tenant's right of possession ends (whichever is later), furnish an itemized statement of the alleged damage and the estimated or actual cost of repairing or replacing each listed item. Delivery may be in person, by postmarked mail to the last known address, or by electronic mail to a verified email address the tenant provided.
The statement must attach paid receipts (or copies) when actual costs are claimed. If the landlord gives estimates, the statute allows an additional window: paid receipts (or copies) must follow within 30 days after the estimate statement was furnished. If the landlord uses own labor, a reasonable labor cost may be included. Lease-specified cleaning/repair amounts are allowed only when they reflect damage beyond normal wear and tear and are reasonable to restore the unit to move-in condition — ordinary wear is not a free remodeling fund.
Return of the deposit — 45-day clock
If the landlord does not furnish the required statement and receipts, the landlord must return the security deposit in full within 45 days after the tenant vacated, delivered in person or by postmarked mail to the last known (or tenant-provided) address. Even when deductions are lawful and properly documented, the unused balance is due within that same 45-day return framework that exam items hammer. Calendar the vacate date, not "whenever accounting gets around to it."
| SDRA checkpoint | Timing / rule | Exam hook |
|---|---|---|
| Current coverage | Lessor of residential real property (all residential lessors; no unit floor) | P.A. 103-224 (eff. 1-1-24) |
| Old rule (repealed) | Formerly "5 or more units" | History only — not current law |
| Itemized damage statement | Within 30 days of vacate / end of possession | Deductions require itemization |
| Paid receipts after estimates | Within 30 days of the estimate statement | Two-step documentation |
| Full return if no proper statement | Within 45 days of vacating | No itemization → full refund clock |
| Statutory damages | 2× deposit due + costs + attorney's fees | Bad-faith / refusal themes |
Statutory damages: 2× deposit + attorney's fees
Under 765 ILCS 710/1(c), if a circuit court finds that the lessor refused to supply the required itemized statement, or supplied it in bad faith, and failed or refused to return the amount of the security deposit due within the statutory time limits, the lessor is liable for an amount equal to twice the amount of the security deposit due, together with court costs and reasonable attorney's fees. Exam stems often paraphrase this as "double the deposit plus attorney fees." The double-damages theme exists to deter landlords who simply keep the money and hope the tenant walks away. After the 2024 expansion, that liability risk reaches small residential landlords who previously sat outside the Act's unit-count gate.
Contrast: local overlays (not a unit-floor escape)
Because SDRA now covers all residential lessors, a duplex or single-family rental is inside the statewide 30-day / 45-day / double-damage framework. What still differs by location is local ordinance overlays. Chicago RLTO, Evanston rules, or Cook County RTLO can impose stricter deposit, interest, receipt, and separate-account duties on top of SDRA — they do not erase SDRA. Separately, the Interest on Security Deposits Act (765 ILCS 715) uses a different size trigger (commonly taught as 25 or more units) for statewide interest — do not confuse that Act with 765 ILCS 710's return and itemization rules, and do not revive the repealed SDRA five-unit floor by mixing the two statutes.
Leasing-agent workflow
When a Chicago or downstate tenant asks "When do I get my deposit back?" your safe professional answer is: itemized deductions within 30 days if money is withheld for damage; balance within 45 days; double damages and attorney's fees risk if the landlord stonewalls — and that statewide Return Act applies to residential lessors of every building size under current law. Collect a forwarding address in writing at move-out, document the condition with photos dated against the move-in checklist, and route deduction disputes to the broker or owner — never invent "we always keep one month for carpet" or "we're under five units so state law doesn't apply" as a firm rule that overrides the amended statute or a local ordinance.
Under current 765 ILCS 710/1 (as amended by Public Act 103-224, effective January 1, 2024), the Security Deposit Return Act applies to:
Under 765 ILCS 710, when must a landlord who withholds part of a security deposit for property damage furnish the tenant an itemized statement of damages?
If a court finds that a landlord refused to supply the required itemized statement (or supplied it in bad faith) and failed to return the security deposit due within the statutory time limits, the landlord may be liable for:
A landlord of a four-unit Illinois residential building receives a security deposit. Under current Security Deposit Return Act law, which statement is correct?