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Do landlords have to pay interest on security deposits in Illinois, and when is it due?
Short answer
Deposit interest for buildings/complexes with 25+ units: pay within 30 days after each 12-month rental period
Payment timing: Within 30 days after each lease anniversary
Landlords of 25+ unit properties must pay interest on deposits held more than six months, at the rate the largest Illinois bank paid on passbook savings, within 30 days after each 12-month rental period (if $5 or more), by cash or rent credit.
"A lessor of residential real property, containing 25 or more units in either a single building or a complex of buildings located on contiguous parcels of real property," ilga.gov
"The lessor shall, within 30 days after the end of each 12 month rental period, pay to the lessee any interest that has accumulated to an amount of $5 or more, by cash or credit to be applied to rent due," ilga.gov
Deposit interest for buildings/complexes with 25+ units: pay within 30 days after each 12-month rental period Verified
Deadline: Within 30 days after each lease anniversary
Landlords of 25+ unit properties must pay interest on deposits held more than six months, at the rate the largest Illinois bank paid on passbook savings, within 30 days after each 12-month rental period (if $5 or more), by cash or rent credit.
Who it covers: Only buildings or complexes on contiguous parcels with 25 or more units, for deposits held more than 6 months. Not public housing.
"A lessor of residential real property, containing 25 or more units in either a single building or a complex of buildings located on contiguous parcels of real property," ilga.gov
"The lessor shall, within 30 days after the end of each 12 month rental period, pay to the lessee any interest that has accumulated to an amount of $5 or more, by cash or credit to be applied to rent due," ilga.gov
Notes: 765 ILCS 715/1-2. Most 1-10 unit landlords are below this threshold; Chicago's RLTO has its own interest rule for smaller buildings.
Last verified 2026-10-20 · Confidence: high · Status: verified · Report a correction