Protect Your Security Deposit

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Tenants ask me all the time about the return of their security deposit. The State of Illinois has a security deposit statute and so do several individual cities. In Chicago, most units that are not owner-occupied (the landlord lives in the building), or are owner-occupied and are in a building containing eight or more units are covered under the Chicago Residential Landlord Tenant Ordinance. Most ordinances have very specific rules for the handling of security deposits and contain stiff penalties for non-compliant landlords.

  1. Your landlord has to keep your security deposit in an interest-bearing account that does not contain the funds of the landlord and disclose the name of the financial institution wherein the security deposit is kept on the face of the lease.
  2. Your landlord is to pay you yearly interest on your security deposit and attach the current interest rate to your lease.
  3. When you are moving out:
    1. Do not use your security deposit as rent. This is regularly done in practice in landlord/tenant relationships, but is legally improper. You are not allowed to “live out” your deposit.
    2. Make sure you take pictures when you leave. If your landlord tries to withhold your security deposit for damages to your apartment, you need to have proof if you are going to successfully argue otherwise.
    3. There are several relevant statutes covering the return of a security deposit.  Illinois has its own and many individual municipalities have an ordinance as well. Below are the Illinois statute, Section 5-12-080 of the RLTO, and The Evanston Ordinance.
      1. The Illinois Security Deposit Return Act

        (765 ILCS 710/1) (from Ch. 80, par. 101)

        Sec. 1. A lessor of residential real property, containing 5 or more units, who has received a security deposit from a lessee to secure the payment of rent or to compensate for damage to the leased property may not withhold any part of that deposit as compensation for property damage unless he has, within 30 days of the date that the lessee vacated the premises, furnished to the lessee, delivered in person, by mail directed to his last known address, or by electronic mail to a verified electronic mail address provided by the lessee, an itemized statement of the damage allegedly caused to the premises and the estimated or actual cost for repairing or replacing each item on that statement, attaching the paid receipts, or copies thereof, for the repair or replacement. If the lessor utilizes his or her own labor to repair any damage caused by the lessee, the lessor may include the reasonable cost of his or her labor to repair such damage. If estimated cost is given, the lessor shall furnish the lessee with paid receipts, or copies thereof, within 30 days from the date the statement showing estimated cost was furnished to the lessee, as required by this Section. If no such statement and receipts, or copies thereof, are furnished to the lessee as required by this Section, the lessor shall return the security deposit in full within 45 days of the date that the lessee vacated the premises.

        Upon a finding by a circuit court that a lessor has refused to supply the itemized statement required by this Section, or has supplied such statement in bad faith, and has failed or refused to return the amount of the security deposit due within the time limits provided, the lessor shall be liable for an amount equal to twice the amount of the security deposit due, together with court costs and reasonable attorney’s fees.

      2. The Chicago Residential Landlord Tenant Ordinance

        (d) The landlord shall, within 45 days after the date that the tenant vacates the dwelling unit or within 7 days after the date that the tenant provides notice of termination of the rental agreement pursuant to Section 5-12-110(g), return to the tenant the security deposit or any balance thereof and the required interest thereon; provided, however, that the landlord may deduct from such security deposit or interest due thereon for the following:

        (1) any unpaid rent which has not been validly withheld or deducted pursuant to state or federal law or local ordinance; and

        (2) a reasonable amount necessary to repair any damage caused to the premises by the tenant or any person under the tenant’s control or on the premises with the tenant’s consent, reasonable wear and tear excluded. In case of such damage, the landlord shall deliver or mail to the last known address of the tenant within 30 days an itemized statement of the damages allegedly caused to the premises and the estimated or actual cost for repairing or replacing each item on that statement, attaching copies of the paid receipts for the repair or replacement. If estimated cost is given, the landlord shall furnish the tenant with copies of paid receipts or a certification of actual costs of repairs of damage if the work was performed by the landlord’s employees within 30 days from the date the statement showing estimated cost was furnished to the tenant.

        …

        (f)(1) Subject to subsection (f)(2), if the landlord fails to comply with any provision of Section 5-12-080 (a) — (e), the tenant shall be awarded damages in an amount equal to two times the security deposit plus interest at a rate determined in accordance with Section 5-12-081. This subsection does not preclude the tenant from recovering other damages to which he may be entitled under this chapter.

      3. There is also an Ordinance for the City of Evanston: (Ord. No. 81-0-02)
        (C) Upon termination of the tenancy, property or money held by the landlont of accrued rent and thrd as security or prepaid rent
        may be applied to the paymee amount of damages which the landlord has suffered by reason of the tenant’s noncompliance with Subsection 4-1 of this chapter, all as itemized by the landlord in a written notice delivered to the tenant together with the amount due twenty one
        (21) days after tenant has vacated his/her unit. Any security or prepaid rent not so applied, and any interest on such security due to the tenant, shall be paid to the tenant within twenty one (21) days
        after tenant has vacated his/her unit. In the event the rental agreement terminates pursuant to subsection 5-3-7-4(A)1 of this chapter regarding landlord’s wrongful failure to supply essential
        services, the obligations imposed on the landlord pursuant to this subsection (C) shall be performed within forty eight (48) hours after the expiration of the seven (7) day written notice to the landlord to
        restore service.

14 Day Letter Requesting Repairs

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Hey All-

This is probably my most-asked question, and something all tenants in Chicago can do on their own when they have a landlord who is not making repairs to a tenant’s satisfaction. You need to send what is called a 14 day letter. Send it certified mail (so you can prove a date of receipt) and keep a copy for your records. The below text is what I’ve used before:

To whom it may concern:

My name is _______________, your tenant residing at ___________, in Chicago, IL _______. As I’m sure you are aware, my tenancy is governed by the Chicago Residential Landlord Tenant Ordinance. Pursuant to the aforementioned municipal ordinance sections 5-12-070 and 5-12-110, this serves a written notice of the following conditions, to wit:

(List of conditions here)

You are required to repair these issues within fourteen (14) days of receipt of this notice. If you fail to do so, I may exercise any of the following remedies allowed by law:

1) Repair the issues myself and deduct the amount of repair from the rent (make sure you keep receipts)
2) Withhold rent to reflect the value of the subject property given the damage present (this can be up to $500 or half the rent, whichever is LESS and it must be a REASONABLE amount)
3) Break my lease without penalty

Response to this notice and request for repairs should be made in writing.

Best Regards,

_____________________________

 

After you see that the letter is received (you can also send it with your rent and the cashing of your rent check will also prove receipt), you need to wait the 14 days to act. After the 14 days are up, send another notice, also certified mail, informing your landlord of the action you intend to take. This will protect you going forward if you landlord takes legal action against you. NEVER JUST STOP PAYING YOUR RENT.

Happy Renting,

Bonnie

I'm being evicted! How does this work?

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Despite the local folklore about the profile and personality of defendants in eviction proceedings, most people are not repeat players in the eviction process and go through it only once in their lifetime. For anyone new to the process of eviction, it can seem confusing and overwhelming. This is a breakdown of the process, just to give the average person a sense of how things proceed in this forum, specifically in Cook County, IL.

NOTICE

Notice is a main part of many legal proceedings and evictions are no exception. All evictions begin with the landlord or the landlord’s agent giving the tenant notice. Notices can be very informal and do not need to be notarized. The notice period begins the day you receive the notice (e.g. if you are out of town and come back on the 15th to see a notice inside your door dated for the 1st, the effective date of service is the 15th, not the 1st).

The vast majority of evictions begin with a five, ten, or thirty day notice. Five day notices are for non-payment. Ten day notices are for breach of a lease term (e.g. having an unauthorized occupant or criminal activity on the property). Thirty day notices are for end of term (i.e. the lease is over). The landlord cannot file until the notice period ends.

SERVICE

Once a landlord or its agent files suit, the tenant must be served. In a large county like Cook County, service must be attempted once through the Sheriff’s office before one can use a private individual, or special process server, to serve service of process. The landlord must make good faith attempts to serve the tenant personally in the lawsuit. That process usually takes about four to six weeks. If the landlord wants a money judgment in an eviction claim, they must obtain personal or substitute service on the tenant. Service is effective when it is had on either the tenant personally or someone who lives in the tenant’s home above the age of thirteen.

If the landlord makes good faith attempts with both the Sheriff’s office and a special process server but is unable to effectuate service on a tenant, then the landlord may go forward by what is called “posting.” Posting is done by literally posting the notice in certain public buildings and mailing a summons and complaint to the tenant. If the tenant does not appear in court on the posting date, the landlord can get a judgment against the property only (also called and “in rem” judgment) without the tenant being present.

COURT

Court proceedings in eviction court are somewhat casual and many parties represent themselves. The landlord has the burden of proof. The landlord has to prove a few things:

  1. The have a superior right to possession of the subject property
  2. Proper notice was given
  3. The tenant unlawfully withholds possession
  4. There is money due (if applicable)

There are usually only a few valid defenses that a tenant may present that are a complete defense to an eviction claim:

  1. Notice presented is improper or was not properly served
  2. If the eviction is based on a non-payment claim, no money is actually due
  3. The landlord is retaliating against the tenant for complaining about subject property conditions or exercising another legal right

EVICTION ORDER

If the landlord is successful proving its case in court, it will receive and Eviction Order. That order is usually “stayed” one or two weeks, depending on the judge’s discretion and may or may not have a money judgment attached. After the stay date, the landlord may place the order with the Sheriff and this gives the Sheriff authority to evict. The Cook County Sheriff is extremely overloaded and evictions usually run four to six weeks behind. The sheriff will usually send a final notice, but the sheriff does not tell anyone but the landlord or its agent when they are coming.

EVICTION

When the eviction actually takes place, the Sheriff comes to the residence, removes all of the occupants with only a few personal belongings, and changes the locks. Only the Sheriff can perform the eviction. When this happens, tenants find that all of their belongings are now stuck inside a residence they no longer have keys to. This is a horrible situation because now you have to negotiate with a landlord that likely hates you to get all of your things back. There is very little protection for a tenant against property damage and theft in these cases.

 

* I hope this helps all of you with any questions you might have. Always feel free to contact me with any questions.