Property Management

Under Illinois law, a residential landlord who receives a security deposit must:

APlace it in a federally insured interest-bearing account if the property has 25 or more units✓ Correct
BReturn it within 14 days of lease expiration regardless of damages
CProvide a written receipt and place it in a separate account
DApply it toward the last month's rent automatically

Explanation

Illinois law requires landlords with 25 or more residential rental units to hold security deposits in a federally insured interest-bearing account and pay annual interest to the tenant. Landlords with fewer units have different requirements. Local ordinances like the Chicago Residential Landlord and Tenant Ordinance may impose stricter requirements.

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