Never chase down checks or late rent payments again. Accept rent by ACH or card. Automated payments, fees & reminders.
Open a security deposit bank
account for free
Create a Virtual account
(aka - rental escrow account)
Collect escrow security deposits
into a virtual account
There is no specific amount set for security deposits in Illinois. However, landlords who own 25 or more units must keep security deposits in interest-bearing accounts and pay interest to tenants, as per the provisions of the 765 ILCS 715/1 and 765 ILCS 715/2. Additionally, landlords must return the security deposit, minus any deductions for damages or unpaid rent, within a reasonable time after the tenant moves out, as defined by the state law.
These are the other states where you can use Baselane: Arizona, California, Illinois, New Jersey, Texas, Virginia & all major states in the USA.
Tenants can cause a lot of damage to your rental property, so you should aim to collect the largest security deposit the market will bear. One month’s rent is typical in most parts of the country, but you may be able to demand more if your rental property is in a particularly hot market.
Your state may set a cap on how much you can collect. Many states, including New York, Massachusetts, and Ohio, set the maximum security deposit you can collect at one month’s rent. Others, including California, Pennsylvania, and Maryland, limit security deposits to 2 months’ rent. There’s no limit on security deposits for rentals in Indiana and Florida.
You should collect the security deposit and the first month’s rent when your new tenant signs the lease. Be sure to give your tenant a detailed receipt for their deposit that includes all information required by local law. Consider using Baselane for automated rent collection to get paid faster, simplify your bookkeeping and ensure you’re handling your deposits appropriately.
If local law states a lower maximum security deposit for month-to-month leases, you may be required to refund the excess amount. Otherwise, the initial terms of the lease usually continue to apply when switching to month-to-month, and no change to the security deposit is required.
You should collect the security deposit and the first month’s rent when your new tenant signs the lease. Be sure to give your tenant a detailed receipt for their deposit that includes all information required by local law. Consider using Baselane for automated rent collection to get paid faster, simplify your bookkeeping and ensure you’re handling your deposits appropriately.