Property Management
Under the Chicago RLTO, if a landlord receives a security deposit of $1,500, the deposit must earn interest at a rate set by:
AThe Federal Reserve's federal funds rate
BThe interest rate published annually by the City of Chicago Comptroller✓ Correct
CThe Illinois Department of Financial and Professional Regulation
DThe landlord's bank at the prevailing savings rate
Explanation
The Chicago RLTO requires landlords to hold security deposits in interest-bearing accounts and pay tenants interest at the rate published annually by the City of Chicago Comptroller. The interest rate is set each year and must be paid to the tenant upon return of the security deposit (if held for six months or more) or annually during a long-term tenancy.
Related Illinois Property Management Questions
- What is 'operating expense ratio' (OER) in property management analysis?
- What does the term 'deferred maintenance' mean in property management?
- What is 'tenant mix' and why is it important in Illinois retail property management?
- What is 'professional liability insurance' (E&O insurance) for Illinois property managers?
- What is a 'capital expenditure' (CapEx) reserve in property management?
- A property manager who commingles tenant security deposits with personal funds is:
- Under the Chicago RLTO, what notice must a landlord give before entering a tenant's unit for non-emergency repairs?
- A triple net (NNN) lease requires the tenant to pay:
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →