Chicago Security Deposits Are Protected - Know Your Rights.

Chicago RLTO Section 5-12-080 mandates that Chicago landlords maintain security deposits in a segregated interest-bearing account, pay security deposit interest annually, give paid receipts (not invoices) for any security deposit deductions, and disclose the bank name and location where the security deposit is being held in the lease.  If a Chicago landlord fails to comply with the numerous guidelines of Chicago RLTO Section 5-12-080, including the ones just mentioned, a Chicago tenant shall be awarded damages equal to two (2) times the amount of the full security deposit (including refundable key, pet, and parking security deposits) plus reasonable attorneys fees and costs.  As ridiculous as this may seem, the Illinois Supreme Court's decision in Lawrence v. Regent Realty Group (2003) confirms that a landlord need not acted willfully to have been found in violation of Section 5-12-080 and thus liable to the tenant for two (2) times the amount of security deposit.  In other words, this security deposit law in Chicago equates to strict liability.  Again, please contact us if you are still in continued disbelief, have a security deposit question, or a security deposit dispute. 

As a side note, Chicago RLTO Section 5-12-080(a) prohibits the "commingling" of security deposits with "assets" of Chicago Landlords.  In other words, Chicago tenants' security deposits shall "continue" to be the tenant's property, and must be maintained in a separate, interest-bearing account (located in the State of Illinois). These are strict mandates; and are often times violated by Chicago landlords.  How do you find out if your Landlord commingled your security deposit?  Simply request the front and back bank images of your security deposit payment from your Bank (this information is sometimes easily located online and you can print the images).  Is it really worth the effort though? Short answer, yes.

Chicago RLTO Takes Precedence Over Any Lease Provision.

Every day, renters in Chicago are forced to sign bad leases, which contain unenforceable provisions under the Chicago RLTO.  Common unlawful lease provisions include ones which state that the security deposit shall be returned "without interest" and lease provisions that call for an excessive late fee.  The below is the exact wording from RLTO Section 5-12-140 with the catch-all subsection being (a).  If your landlord even attempts to enforce any of the below in your lease, you may be entitled to two (2) months rent as damages plus your reasonable attorneys fees and costs.  Please contact us if you think your lease contains unlawful provisions or if you wish to know your rights under this section.  Read on for more information on Chicago law codes for various tenant-landlord disputes.

"Except as otherwise specifically provided by this chapter, no rental agreement may provide that landlord or tenant: (a) agrees to waive or forego rights, remedies or obligations provided under this chapter; (b) authorizes any person to confess judgment on a claim arising out of the rental agreement; (c) agrees to the limitation of any liability of the landlord or tenant arising under law; (d) agrees to waive any written termination of tenancy notice or manner of service thereof provided under state or this chapter; (e) agrees to the limitation of any liability of the landlord or tenant arising under law; (f) agrees to waive the right of any party to a trial by jury; (g) agrees that either party may cancel or terminate a rental agreement at a different time or within a shorter time period than the other party, unless such provision is disclosed in a separate written notice; (h) agrees that a tenant shall pay a charge , fee or penalty in excess of $10.00 per month for the first $500.00 in monthly rent plus 5% per month for any amount in excess of $500.00 in monthly rent for the late payment of rent; and (i) agrees that, if a tenant pays rent before a specified date or within a specified time period in the month, the tenant shall receive a discount or reduction in the rental amount in excess of $10.00 per month for the first $500.00 in monthly rent plus 5% per month for any amount in excess of $500.00 in monthly rent period in the month, the tenant shall receive a discount or reduction in the rental amount in excess of $10.00 per month for the first $500.00 in monthly rent plus 5% per month for any amount in excess of $500.00.  A provision prohibited by this section included in a rental agreement is unenforceable.  The landlord may recover damages sustained by the tenant because of the enforcement of a prohibited provision. If the landlord attempts to enforce a a provision in a rental agreement prohibited by this section the may recover two months rent."

Have You Received a Summary of the RLTO?

The RLTO Summary and Separate Summary are distributed by the Chicago City Clerk's Office and must be given to all Chicago renters when the lease is initially offered and renewed.  Chicago Landlords violate Section 5-12-170 frequently and remedies are available in the form of being able to break your lease and also being able to recover $100.00 as statutory penalty (plus your reasonable fees and costs as also allowed for by the Chicago RLTO).  While $100.00 may not seem like a big number, large management companies engage in unlawful practices of issuing out-dated RLTO Summaries thus subjecting them to enormous liability via the class-action mechanism.  Please contact us to to learn more - this is serious stuff.