Specific Question for Illinois Landlords Regarding Security Dep.

[Theresa P.]

We own a 3 unit building in Chicago. Do we need to keep security deposits in a separate bank account? Any information I see on the matter only references larger properties. Just wondering if there are any rules smaller owners need to follow.

[Bob Floss II]

@Theresa P. You need to satisfy all the requirements of the RLTO, which includes a separate bank account, giving notice of that bank to the tenant, and giving them the interest every year. Failure to meet all the requirements is triple the security deposit in damages.

If you have rental property in Chicago you should not be accepting a security deposit. Holding it exposes you and the property to unnecessary liability. Charge a small move-in or application fee.