Full question:
I am a tenant in an association complex of more than 100 units. The landlord owns 4 of the units of which I am one of the 4 tenants. The landlord has held a $2,400.00 security deposit for 4 years. Question: Am I entitled to interest (what percentage) on the held security deposit monies, even though the landlord owns less than 5 units within the association?
- Category: Landlord Tenant
- Subcategory: Security Deposit
- Date:
- State: Illinois
Answer:
The Illinois statute regarding interest on security deposits applies only to properties with 25 or more units. According to the Security Deposit Interest Act (765 ILCS 715), a landlord must pay interest on security deposits if they manage a residential property containing 25 or more units. This interest is calculated based on the rate offered by the largest commercial bank in Illinois for minimum deposit passbook savings accounts as of December 31 of the year before the rental agreement starts, but only for deposits held longer than six months.
Since your landlord owns only four units, they are not required to pay you interest on your security deposit. If a landlord fails to pay the required interest when applicable, they may be liable for the amount of the security deposit, along with court costs and reasonable attorney fees.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.