A tenant’s roadmap for reclaiming a delayed security deposit in Illinois under the Illinois Security Deposit Return Act (765 ILCS 710)

The client's task

Title

Consultation with Real Estate Attorney for Security Deposit Refund

Description

We are seeking a knowledgeable Real Estate Attorney to provide legal assistance regarding the refund of a security deposit.
We have received a notice about delay in refunding the security deposit in the state of Illinois.
We wanted to explain the entire situation and get feedback on next steps.
The ideal candidate will offer a thorough review of our situation, assess the legal implications, and provide an expert opinion on the best course of action.
Experience in tenant law and security deposit disputes is crucial.
If you have a strong understanding of real estate regulations and a proven track record in handling similar cases, we invite you to apply for this opportunity.

1.

Your situation is governed by a specific act (A): Security Deposit Return Act, 765 ILCS 710

2.

Section 1(a) of A establishes the following timeframes for the lessor:

2.1.

30 days after the tenant vacates: the deadline to provide an itemized list of damages indicating the cost of repair, if deductions for damages are planned.

2.2.

45 days after the tenant vacates: the deadline to return the deposit in full if the itemized list was not provided within the first 30 days.

3.

It should be noted that the deadlines outlined in point 2 apply only if the tenant has provided the landlord with their forwarding address (mailing or email).
According to Section 1(a) of A, if the tenant does not provide a forwarding address, the landlord is not liable for damages or penalties.

4.

4.1.

The «notice about delay» that you received does not exempt the lessor from complying with the deadlines set forth in point 2.

4.2.

The content of this «notice» is relevant: if it includes an itemized list of damages, it can be considered an attempt (perhaps a belated one) to comply with the requirements of Section 1(a) of A.

5.

Note that the State of Illinois allows municipalities to adopt their own ordinances governing landlord-tenant relationships.
In particular, cities such as Chicago and Evanston have significantly stricter rules (e.g., the Chicago Residential Landlord and Tenant Ordinance, RLTO) than state law.
These local ordinances may establish shorter deadlines for the return of the security deposit, require it to be held in a separate account, and provide for stricter penalties for violations.
Since the exact location of the rental property in Illinois is unknown, it is impossible to determine whether your case falls under such stricter local regulation.
Any strategy based solely on Illinois state law may prove to be incomplete and ineffective if a stricter local act is in effect in the specific municipality.

6.

In any case (even considering point 5), you will certainly win the case in court if the lessor violated the deadlines specified in point 2.

7.

According to A, in the event of a favorable judgment, the lessor will be required to:
7.1) pay an amount equal to twice the amount of the security deposit.
7.2) pay court costs and reasonable attorney's fees.

8.

The court will order the lessor to pay a penalty only if it finds that the lessor refused to provide an itemized list of damages, or provided it «in bad faith», and did not return the deposit within the established timeframes.

9.

Before initiating any legal action, it is necessary to collect and preserve all evidence.
This includes:

9.1)

The lease agreement.

9.2.

Proof of the deposit payment (e.g., a receipt or account statement).

9.3.

Documentation of the property's condition upon move-in and move-out (photographs, video recordings, inspection reports).

9.4.

A copy of the received «notice about delay».

9.5.

All correspondence with the landlord (including emails and text messages).

9.6.

Proof of the exact move-out date.

9.7.

Proof that the forwarding address was provided.

10.

If you want to save time, a Formal Demand Letter can be sent to the lessor before initiating legal action.
This letter must be sent via USPS Certified Mail with the use of the «Return Receipt Requested» option.
This will provide legally valid proof of the letter's receipt by the addressee.

11.

For maximum effectiveness, the Formal Demand Letter should contain the following information:

11.1.

The exact move-out date and the amount of the security deposit paid.

11.2.

The tenant's forwarding address and confirmation that it was previously provided to the landlord.

11.3.

A direct reference to the applicable law (the Security Deposit Return Act, 765 ILCS 710/1, and local ordinances, if applicable).

11.4.

A demand for the return of the full security deposit (and interest, if applicable under 765 ILCS 715).

11.5.

A mention of the statutory penalties for non-compliance (including double the amount of the security deposit and reasonable attorney's fees).

12.

In the Formal Demand Letter, it is important to set a short response deadline (e.g., 7 days).

13.

Note that the lessor is not obligated to respond to the Formal Demand Letter, but the absence of a response can be used in court as additional evidence of «bad faith».