SECURITY DEPOSIT DEMAND LETTER

STATE OF ILLINOIS

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[DATE]

[LANDLORD/PROPERTY MANAGER NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, STATE ZIP]

Re: DEMAND FOR RETURN OF SECURITY DEPOSIT
Former Tenant: [TENANT FULL NAME]
Rental Property Address: [RENTAL ADDRESS]
Lease Start Date: [DATE]
Move-Out Date: [DATE]
Security Deposit Amount: $[AMOUNT]

Dear [LANDLORD/PROPERTY MANAGER NAME]:

This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") regarding your failure to return the security deposit for the above-referenced rental property in accordance with Illinois law. This letter constitutes formal demand for the immediate return of our Client's security deposit, plus all applicable interest, statutory penalties, damages, and attorney's fees.

I. ILLINOIS LEGAL FRAMEWORK

A. Governing Law

Security deposits in Illinois are governed by:
- Illinois Security Deposit Return Act, 765 ILCS 710
- Illinois Security Deposit Interest Act, 765 ILCS 715
- Chicago Residential Landlord and Tenant Ordinance (if property is in Chicago)

B. Security Deposit Limits

Illinois state law does not impose a statutory limit on the amount of security deposit a landlord may charge.

Chicago Exception: The Chicago Residential Landlord and Tenant Ordinance limits security deposits to one and one-half months' rent.

C. Return Deadline

Pursuant to 765 ILCS 710/1:

If NO deductions:
- Return the deposit within thirty (30) days after the tenant vacates

If deductions are made:
- Return within thirty (30) days with an itemized statement; OR
- Within 45 days if good faith estimates are used (with actual receipts to follow)

D. Interest Requirements

Under the Illinois Security Deposit Interest Act (765 ILCS 715):

State Law (25+ unit buildings):
- Landlords of buildings with 25 or more units must pay interest
- Interest must be paid annually during the tenancy
- Interest accrues from the date of deposit
- The rate is determined by the interest rate on a minimum deposit passbook savings account

Chicago Ordinance (all covered properties):
- Interest must be paid on all covered security deposits
- Rate is set by City of Chicago annually
- Interest must be paid annually or at the end of tenancy

E. Itemization Requirements

Under 765 ILCS 710/1, if the landlord retains any portion of the deposit, they must provide within 30 days:
- An itemized statement of damages
- Paid receipts or estimates from licensed contractors
- If estimates are used, actual paid receipts must be provided within 30 additional days

F. Permissible Deductions

Under Illinois law, a landlord may retain from the security deposit amounts for:
- Unpaid rent
- Damage to the premises beyond normal wear and tear
- Other charges specified in the lease agreement

II. CHICAGO RESIDENTIAL LANDLORD AND TENANT ORDINANCE (IF APPLICABLE)

[Include this section if the property is located in Chicago]

The property at issue is located in the City of Chicago and is subject to the Chicago Residential Landlord and Tenant Ordinance (CRLTO), Chicago Municipal Code Section 5-12-010 et seq.

Under the CRLTO:

A. Security Deposit Limit

• Maximum of one and one-half months' rent

B. Interest Requirement

• Interest must be paid at the rate set by the City Comptroller
• Interest must be paid within 30 days after the end of each 12-month rental period or at termination

C. Separate Account Requirement

• Deposits must be held in a federally insured interest-bearing account in a financial institution in Illinois

D. Receipt Requirement

• Landlord must provide a receipt including the name and address of the financial institution where the deposit is held

E. Pre-Move-Out Inspection

• Tenant may request a move-out inspection prior to termination
• Landlord must provide written itemization of damages found during inspection

F. Penalties Under CRLTO

• Failure to comply with CRLTO provisions entitles the tenant to:
• Twice the deposit amount as damages
• Interest on the deposit
• Reasonable attorney's fees

III. FACTUAL BACKGROUND

A. Tenancy Information

B. Move-Out Circumstances

Notice Provided:
- Date Notice Given: [DATE]
- Notice Period: [NUMBER] days
- Method of Delivery: [ ] Hand-delivered [ ] Certified mail [ ] Email

Move-Out Details:
- Date Keys Returned: [DATE]
- Forwarding Address Provided: [ ] Yes [ ] No
- Date Forwarding Address Provided: [DATE]
- Pre-Move-Out Inspection: [ ] Requested [ ] Conducted [ ] Refused by Landlord [ ] Not offered

C. Condition of Premises at Move-Out

Our Client left the premises in the following condition:

[ ] Clean and in good repair - The premises were left in substantially the same condition as when our Client took possession, reasonable wear and tear excepted.

[ ] Professionally cleaned - Our Client hired [CLEANING COMPANY NAME] to professionally clean the premises on [DATE].

[ ] All personal property removed - All of our Client's personal belongings were removed from the premises.

[ ] No damage beyond normal wear and tear - Any changes to the premises were the result of normal, expected use during the tenancy.

[ ] Move-in/Move-out photos - Our Client has photographic documentation of the condition of the premises at both move-in and move-out.

IV. LANDLORD'S VIOLATIONS

You have violated Illinois law in the following ways:

[ ] Failure to Return Deposit: You have failed to return any portion of the security deposit within the statutory 30-day period required under 765 ILCS 710/1.

[ ] Failure to Provide Itemization: You have failed to provide a written, itemized statement of damages with receipts or estimates within the statutory period.

[ ] Failure to Provide Receipts: You failed to provide actual paid receipts within 30 days after providing estimates.

[ ] Failure to Pay Interest: You have failed to pay interest on the security deposit as required by 765 ILCS 715 and/or the Chicago RLTO.

[ ] Failure to Maintain Interest-Bearing Account (Chicago): You failed to hold the deposit in a federally insured interest-bearing account in Illinois.

[ ] Failure to Provide Receipt (Chicago): You failed to provide a receipt with the deposit institution's name and address.

[ ] Excessive Security Deposit (Chicago): You collected a security deposit exceeding one and one-half months' rent in violation of the Chicago RLTO.

[ ] Improper Deductions: You have made deductions that are not permitted by law, including:
- [ ] Deductions for normal wear and tear
- [ ] Deductions for pre-existing conditions
- [ ] Deductions exceeding actual cost of repairs
- [ ] Other improper deductions: [SPECIFY]

[ ] Willful Failure to Comply: You have willfully failed to comply with the security deposit return requirements.

V. NORMAL WEAR AND TEAR

Illinois law distinguishes between "damage" for which a tenant may be charged and "normal wear and tear" for which a tenant may not be charged. Normal wear and tear includes deterioration that results from the intended use of the premises and ordinary operation of natural forces over time.

The following items, if deducted, constitute normal wear and tear and are NOT permissible deductions:

[ ] Minor scuff marks on walls from furniture
[ ] Small nail holes from hanging pictures
[ ] Worn carpet in traffic areas
[ ] Faded paint or wallpaper
[ ] Minor scratches on hardwood floors
[ ] Worn finish on bathroom fixtures
[ ] Slightly dirty mini-blinds
[ ] Dust or minor dirt requiring standard turnover cleaning
[ ] Worn door handles or locks
[ ] Other: [SPECIFY]

VI. DAMAGES AND PENALTIES

A. Return of Security Deposit

B. Interest Due

Under 765 ILCS 715 and/or the Chicago RLTO, landlords must pay interest on security deposits:

Interest Calculation:
- Principal: $[DEPOSIT AMOUNT]
- Duration of Tenancy: [MONTHS/YEARS]
- Applicable Interest Rate: [RATE]% per annum
- Interest Due: $[AMOUNT]

C. Statutory Penalties - State Law

Under 765 ILCS 710/1, if a landlord willfully fails to comply with the security deposit return requirements, the tenant may recover:

• Twice the amount of the security deposit

Penalty Calculation (State Law):
- Security Deposit: $[AMOUNT]
- Double Damages (2x): $[AMOUNT]

D. Statutory Penalties - Chicago RLTO (If Applicable)

Under the Chicago Residential Landlord and Tenant Ordinance, violations entitle the tenant to:

• Twice the deposit amount
• All accrued interest
• Reasonable attorney's fees and costs

Total CRLTO Penalty:
- Double Deposit: $[AMOUNT]
- Interest: $[AMOUNT]
- Total: $[AMOUNT]

E. Attorney's Fees and Costs

Under both state law and the Chicago RLTO, the prevailing tenant is entitled to recover reasonable attorney's fees and costs.

F. Total Demand

VII. EVIDENCE IN OUR POSSESSION

Our Client has preserved the following evidence to support this claim:

[ ] Original lease agreement
[ ] Receipt or cancelled check for security deposit payment
[ ] Deposit receipt showing financial institution (Chicago)
[ ] Move-in inspection report/checklist
[ ] Move-out inspection report/checklist
[ ] Photographs of premises at move-in (dated)
[ ] Photographs of premises at move-out (dated)
[ ] Video walkthrough at move-out
[ ] Copy of written notice to vacate
[ ] Proof of delivery of notice and forwarding address
[ ] Receipts for professional cleaning
[ ] Correspondence with landlord regarding deposit
[ ] Landlord's itemized statement (if provided)
[ ] Documentation of interest payments (or lack thereof)
[ ] Witness statements regarding condition of premises
[ ] Utility final bills showing service through move-out date
[ ] Other: [SPECIFY]

VIII. DEMAND

We hereby demand that you take the following actions within fourteen (14) days of the date of this letter:

1. Return of Deposit: Pay to our Client the full amount of the security deposit: $[AMOUNT]

2. Accrued Interest: Pay to our Client all accrued interest: $[AMOUNT]

3. Statutory Penalties: Pay to our Client the statutory penalty for willful noncompliance: $[AMOUNT]

4. Total Payment: The total amount due is $[TOTAL AMOUNT]

Payment should be made by certified check or money order, payable to [TENANT NAME], and sent to:

[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]

Reference: [TENANT NAME] Security Deposit

IX. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply with this demand within the time specified, we are authorized and prepared to:

1. File Suit: Commence legal action in Illinois Small Claims Court (for claims up to $10,000) or Circuit Court for return of the deposit, double damages, interest, attorney's fees, and costs.

2. Seek Maximum Penalties: Request the court impose double damages and all penalties under state law and the Chicago RLTO (if applicable).

3. Seek Attorney's Fees: Request the court award reasonable attorney's fees.

4. Report Violations: Report your conduct to:
   - Illinois Attorney General - Consumer Protection Division
   - City of Chicago Department of Housing (if applicable)
   - Better Business Bureau

5. Judgment Enforcement: Upon obtaining judgment, pursue all legal means of collection, including garnishment, levy, and lien on property.

X. RESPONSE REQUESTED

Please respond to this demand in writing within fourteen (14) days. Your response should include:

1. Your position on the amount owed to our Client
2. Any documentation supporting claimed deductions
3. Payment or a good-faith settlement offer

If we do not receive a satisfactory response, we will file suit without further notice.

XI. RESERVATION OF RIGHTS

This letter is written without prejudice to any and all rights and remedies available to our Client under applicable law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or by any subsequent negotiations.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
[ILLINOIS ARDC NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]

Attorneys for [TENANT FULL NAME]

ENCLOSURES:
[ ] Copy of lease agreement
[ ] Copy of security deposit receipt
[ ] Move-in/move-out photographs
[ ] Copy of notice to vacate
[ ] Copy of forwarding address notification
[ ] Copy of landlord's itemization (if any)
[ ] Cleaning receipts
[ ] Authorization to represent

cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]

ILLINOIS SECURITY DEPOSIT QUICK REFERENCE

ILLINOIS-SPECIFIC PRACTICE NOTES

[ ] Chicago RLTO: The Chicago Residential Landlord and Tenant Ordinance provides much stronger tenant protections than state law. Always check if the property is in Chicago.

[ ] Interest Requirements: State law requires interest only for buildings with 25+ units. Chicago requires interest for all covered properties.

[ ] Receipt Requirements: Under both state law and CRLTO, itemizations must include actual receipts or estimates from licensed contractors. Estimates require follow-up receipts within 30 days.

[ ] Pre-Move-Out Inspection: Under CRLTO, tenants can request a pre-move-out inspection to identify and potentially remedy issues before final move-out.

[ ] Double Damages: Both state law and CRLTO provide for double damages - state law requires "willful" failure, while CRLTO applies more broadly.

[ ] Cook County: Cook County has additional housing resources and tenant advocacy organizations.

[ ] Small Claims Limit: Illinois small claims limit is $10,000. For larger claims, file in Circuit Court.

[ ] Evanston and Oak Park: These municipalities have their own tenant protection ordinances similar to Chicago's.

This template is for informational purposes only and does not constitute legal advice. Illinois and Chicago security deposit laws are complex. Consult a licensed Illinois attorney before use.