Security Deposit Itemization Letter

SECURITY DEPOSIT ITEMIZATION AND RETURN LETTER

(Illinois – Court-Ready Template)

TABLE OF CONTENTS

1. Document Header
2. Definitions

3. Operative Provisions
   3.1 Statutory Accounting Deadlines
   3.2 Itemized Statement of Deductions
   3.3 Calculation of Amount Due to Tenant
   3.4 Interest on Deposit (if applicable)
   3.5 Delivery of Enclosures

4. Tenant’s Right to Contest / Cure Procedure

5. Governing Law & Forum Selection
6. Miscellaneous Provisions
7. Execution Block

1. DOCUMENT HEADER

Title: Security Deposit Itemization and Return Letter

Landlord: [LANDLORD LEGAL NAME], a [STATE] [ENTITY TYPE] (“Landlord”)
Address: [LANDLORD NOTICE ADDRESS]

Tenant(s): [TENANT FULL LEGAL NAME(S)] (“Tenant”)
Forwarding Address: [TENANT FORWARDING ADDRESS]

Premises: [STREET ADDRESS • UNIT # • CITY • IL • ZIP]

Lease Commencement Date: [DATE]
Lease Termination Date: [DATE]
Move-Out / Surrender Date: [DATE]

Original Security Deposit (“Deposit”): $[AMOUNT] received on [DATE] pursuant to § [SECTION] of the Lease.

Effective Date of Letter: [DATE WITHIN 30 DAYS OF MOVE-OUT]

Recitals:
A. Tenant vacated the Premises on the Move-Out Date and returned exclusive possession to Landlord.
B. Landlord is obligated under the Illinois Security Deposit Return Act, 765 ILCS 710/1 et seq., the Illinois Security Deposit Interest Act, 765 ILCS 715/1 et seq. (if applicable), and any governing municipal ordinance to furnish an itemized statement of any lawful deductions and to return the unapplied portion of the Deposit within the statutory timeframe.
C. Landlord issues this Letter to comply with those legal requirements and to preserve all rights and remedies arising under the Lease and applicable law.

2. DEFINITIONS

“Act” – Collectively, the Illinois Security Deposit Return Act, 765 ILCS 710/1 et seq., and, where applicable, the Illinois Security Deposit Interest Act, 765 ILCS 715/1 et seq.

“Damage” – Physical impairment, beyond ordinary wear and tear, caused by Tenant, Tenant’s invitees, or permitted occupants.

“Ordinary Wear and Tear” – Deterioration that occurs without negligence, carelessness, accident, or abuse.

“Statutory Deadline” – Thirty (30) days after Tenant’s surrender of possession for issuance of this Letter; forty-five (45) days after surrender for refund of any unapplied Deposit balance where no itemization is required, each as provided in 765 ILCS 710/1.

“Unapplied Deposit Balance” – The remainder of the Deposit after lawful deductions and addition of any interest payable under the Act.

3. OPERATIVE PROVISIONS

3.1 Statutory Accounting Deadlines

Pursuant to 765 ILCS 710/1, this Letter is dispatched on or before the thirtieth (30th) day following Tenant’s surrender of possession, thereby satisfying Landlord’s statutory obligation to provide an itemized statement of deductions.

3.2 Itemized Statement of Deductions

Total Deductions: $[TOTAL DEDUCTIONS]

3.3 Calculation of Amount Due to Tenant

Original Deposit .......................................................... $[DEPOSIT]
Plus: Statutory Interest (if applicable, see § 3.4) ...... $[INTEREST]
Less: Total Deductions (§ 3.2) ...................................... $[–]
Balance Refunded to Tenant ................................ $[REFUND]

Enclosed is Landlord’s check no. [CHECK #] in the refund amount of $[REFUND] made payable to “[TENANT NAME(S)].”

3.4 Interest on Deposit (if applicable)

Because (i) the building contains ≥ 25 dwelling units, and (ii) the Deposit was held for more than six (6) months, Landlord is required under 765 ILCS 715/2 to pay interest at the rate published annually by the Illinois Department of Financial & Professional Regulation. The interest amount calculated through the Move-Out Date equals $[INTEREST] and is included in § 3.3 above.

3.5 Delivery of Enclosures

Landlord transmits with this Letter:
a. Check no. [CHECK #] in the amount of $[REFUND];
b. Paid receipts and/or invoices supporting each deduction listed in § 3.2 (or a statement that such receipts will be provided within thirty (30) additional days where marked “Pending”); and
c. A self-addressed, postage-paid envelope for Tenant’s response, if any.

4. TENANT’S RIGHT TO CONTEST / CURE PROCEDURE

1. Contest Period. Tenant must deliver written notice of any dispute concerning the deductions detailed herein within thirty (30) calendar days after receipt of this Letter (“Contest Period”).
2. Form of Notice. Tenant’s notice must (a) identify each contested deduction, (b) state with specificity the factual and legal basis for the objection, and (c) include any supporting documentation.
3. Good-Faith Resolution. Upon timely receipt of a proper notice, Landlord will review the objection in good faith and respond within fifteen (15) days.
4. Failure to Contest. If Tenant fails to timely contest, the deductions and refund stated herein shall be deemed final, subject only to non-waivable statutory rights under the Act.

5. GOVERNING LAW & FORUM SELECTION

This Letter shall be governed by, and construed in accordance with, the residential landlord-tenant laws of the State of Illinois. Any dispute arising out of or relating to the Deposit, this Letter, or the Lease shall be filed exclusively in the [INSERT COUNTY] Housing Court or other court of competent jurisdiction located within the State of Illinois. Arbitration is expressly disclaimed. Nothing herein constitutes a waiver of any party’s constitutional right to a jury trial. Monetary damages shall be the exclusive remedy; injunctive relief is neither sought nor required for enforcement of this Letter.

6. MISCELLANEOUS PROVISIONS

6.1 No Waiver. Issuance of this Letter does not waive, and Landlord expressly reserves, all claims for unpaid rent, damages, or other relief arising under the Lease or applicable law in excess of the Deposit.

6.2 Entire Accounting. Subject to Tenant’s rights under § 4 and Landlord’s continuing obligation to furnish receipts marked “Pending,” this Letter constitutes Landlord’s complete and final accounting of the Deposit.

6.3 Address for Future Correspondence. All post-vacate correspondence shall be directed to:
Landlord: [LANDLORD NOTICE ADDRESS]
Tenant: [TENANT FORWARDING ADDRESS] (or any address subsequently provided in writing by Tenant).

6.4 Counterparts & Electronic Delivery. This Letter may be executed and delivered electronically, and an electronic copy shall constitute an original for all purposes.

7. EXECUTION BLOCK

IN WITNESS WHEREOF, the undersigned executes this Security Deposit Itemization and Return Letter as of the Effective Date.

Landlord:
[LANDLORD LEGAL NAME]
By: ________________________________
Name: [AUTHORIZED SIGNATORY]
Title: [Title]
Date: [DATE]

ACKNOWLEDGMENT OF RECEIPT (Optional)

Tenant hereby acknowledges receipt of the foregoing Letter, refund check, and enclosures on [DATE].

Tenant: _____________________________ Date: ___________
Tenant: _____________________________ Date: ___________