Illinois Security Deposit Return Letter

Illinois law requires landlords to return a tenant's security deposit (plus any required interest) within 30 days after lease termination and the tenant vacating the premises. If any portion is withheld, the landlord must provide a written itemized statement describing the damages and the actual or estimated cost of repair or cleaning. For residential properties located within the City of Chicago, the Chicago Residential Landlord and Tenant Ordinance (RLTO) governs: the return deadline is 45 days after the tenant vacates, an itemized statement of damages must be provided within 30 days, and interest must be paid on deposits held for more than six months at the rate determined annually by the City Comptroller., -

Pre-Departure Inspection Offer

Landlords intending to make deductions are advised (and in Chicago often practically required for defensibility) to offer the tenant a pre-move-out inspection. This allows the tenant to address correctable issues and creates a contemporaneous record of condition.

PRE-DEPARTURE INSPECTION OFFER
STATE OF ILLINOIS

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Current or Last Known Address]]
[[City]], Illinois [[ZIP Code]]

FROM (Landlord or Property Manager): [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]]
[[City]], Illinois [[ZIP Code]]
Phone: [[Landlord Phone]] | Email: [[Landlord Email]]

RE: Pre-Departure Inspection Offer, [[Rental Property Full Address]], [[City]], Illinois [[ZIP Code]]

Dear [[Tenant First Name(s)]],

Your tenancy at the above Premises is scheduled to end on [[Lease Termination / Move-Out Date]]. To minimize potential disputes over the condition of the unit and the security deposit of $[[Security Deposit Amount]], I offer you the opportunity to participate in a joint walk-through inspection of the Premises prior to your vacating.

Please contact me no later than [[Inspection Scheduling Deadline]] to schedule a convenient time. If you decline or fail to respond, the inspection will proceed without you and the resulting written record will be used for the final accounting.

A formal deposit return or itemized statement will be provided within the time required by applicable Illinois law (30 days for most jurisdictions; 45 days under Chicago RLTO) after you vacate and supply a forwarding address.

Sincerely,

___________________________________
[[Landlord or Property Manager Full Name]]
[[Title]]
Date: [[Date Signed]], -

Part A, Security Deposit Return Letter (Full Return, No Deductions)

*Use this version when returning the entire deposit without deductions.*, -

SECURITY DEPOSIT RETURN LETTER, FULL RETURN
STATE OF ILLINOIS

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Forwarding Address]]
[[City]], [[State]] [[ZIP Code]]

FROM: [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]]
[[City]], Illinois [[ZIP Code]]
Phone: [[Landlord Phone]] | Email: [[Landlord Email]]

RE: Return of Security Deposit, [[Rental Property Full Address]], [[City]], Illinois [[ZIP Code]]

Dear [[Tenant First Name(s)]],

The tenancy at [[Rental Property Full Address]] terminated on [[Move-Out / Possession Return Date]]. You vacated the Premises and returned all keys and access devices on [[Key Return Date]]. Your forwarding address was received on [[Forwarding Address Date]].

After final inspection, no deductions are being made from your security deposit for unpaid rent, damage beyond ordinary wear and tear, or excessive cleaning.

Deposit Accounting

Enclosed please find check number [[Check Number]] dated [[Check Date]] payable to [[Tenant Full Name(s)]] in the amount of $[[Total Amount Returned]].

This letter constitutes the landlord's complete accounting and return of your security deposit as required by Illinois law. No further amounts are owed or claimed against the deposit.

Thank you for your tenancy. Please retain this letter and the enclosed check for your records.

Sincerely,

___________________________________
[[Landlord or Property Manager Full Name]]
[[Title]]
Date: [[Date Signed]], -

Part B, Security Deposit Return Letter with Itemized Deductions

*Use this version when making deductions. Attach supporting documentation.*, -

SECURITY DEPOSIT RETURN LETTER, ITEMIZED STATEMENT
STATE OF ILLINOIS
Applicable Return Period: 30 days (or 45 days under Chicago RLTO)

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Forwarding Address]]
[[City]], [[State]] [[ZIP Code]]

FROM: [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]]
[[City]], Illinois [[ZIP Code]]
Phone: [[Landlord Phone]] | Email: [[Landlord Email]]

RE: Security Deposit Accounting and Partial Return, [[Rental Property Full Address]], [[City]], Illinois [[ZIP Code]]

Dear [[Tenant First Name(s)]],

Your tenancy at the Premises terminated on [[Move-Out / Possession Return Date]]. You returned possession and all keys on [[Key Return Date]]. Your forwarding address was received on [[Forwarding Address Date]].

Pursuant to Illinois law, this letter provides the required written itemized statement of deductions together with the remaining balance of the security deposit. Any amounts not deducted are returned herewith.

Deposit Summary

Itemized Deductions

Illinois law permits deductions only for:

1. Unpaid rent or other charges expressly permitted by the lease that remain due at termination.

2. Damage to the Premises beyond ordinary wear and tear, supported by actual costs or reasonable estimates.

3. Cleaning necessary to return the unit to the condition at move-in (excluding ordinary wear).

4. Other amounts specifically authorized in the lease and not prohibited by law.

Ordinary wear and tear includes minor scuffs, nail holes from pictures, carpet indentations from normal furniture use, and gradual fading. Such items are not deductible.

Detailed Deduction List:

Supporting Documentation

Copies of the following receipts, invoices, or written estimates are enclosed with this letter:

Chicago RLTO Interest Note (if applicable)

If the Premises is located in Chicago and the deposit was held longer than six months, interest has been calculated at the rate published by the City Comptroller for the relevant period and is reflected in the summary above (or credited as required). Annual interest payments were (or should have been) made or credited to rent during the tenancy.

Payment of Balance

Enclosed is check [[Check Number]] dated [[Check Date]] in the amount of $[[Balance Returned]] payable to [[Tenant Full Name(s)]].

This accounting is complete. If you dispute any deduction, you may respond in writing within the time permitted by law. Failure to return the deposit or provide a proper itemized statement when required may expose the landlord to liability for the amount wrongfully withheld plus additional damages or penalties as provided by applicable statute or ordinance.

Sincerely,

___________________________________
[[Landlord or Property Manager Full Name]]
[[Title]]
Date: [[Date Signed]], -

Service and Recordkeeping

This letter and any enclosures were (check one and retain proof):

• [ ] Personally delivered to tenant on [[Date]]
• [ ] Sent by certified mail, return receipt requested, on [[Date]]
• [ ] Sent by regular first-class mail on [[Date]] (with proof of mailing)

Landlord retains copies of this letter, all supporting invoices/estimates, move-in and move-out inspection reports, photographs, and the canceled check or proof of electronic transfer for a minimum of three years or as required by law., -

*Template, not professional legal advice. Verify current Illinois statutes (including 765 ILCS provisions on security deposits where applicable) and any local ordinances (Chicago RLTO §§ 5-12-080 et seq. imposes specific 45-day return, 30-day itemization, and interest requirements). Statutory periods and interest rates must be confirmed for the specific property location and tenancy dates as of the date of use. This document is provided for illustrative purposes in an AI-assisted workflow.*