Evanston Security Deposit Rules: What the Residential Landlord and Tenant Ordinance Adds to Illinois Law

A landlord in Evanston has to satisfy two sets of rules at once: the Illinois statute, 765 ILCS 710/1 (Security Deposit Return Act), and the city's own Residential Landlord and Tenant Ordinance (Evanston City Code § 5-3-5-1). The state law sets the 45-day return deadline after termination of the tenancy; the local ordinance adds rules on deposit cap, paying the deposit in installments, return deadline and rent-increase notice. Where the two overlap, the landlord has to meet the stricter one.

What the Residential Landlord and Tenant Ordinance adds

• Deposit cap: Security deposit plus prepaid rent combined may not exceed one and one-half months' rent. (5-3-5-1(A))
• Paying the deposit in installments: The portion above one month's rent may, at the tenant's election, be paid in up to six equal installments within six months. (5-3-5-1(A))
• Return deadline: Deposit and prepaid rent not applied to itemized rent or damages must be returned within 21 days after the tenant vacates; wrongful withholding carries double damages and attorney fees. (5-3-5-1(B), (D))
• Other local rule: Deposits must be held in a federally insured Illinois account and not commingled. (5-3-5-1(C))
• Rent-increase notice: Housing providers must give at least 90 days' written notice of non-renewal or month-to-month termination and must deliver any proposed renewal lease at least 90 days before the current term ends, or the tenancy extends 90 days on existing terms. (5-3-6-5)

Who it covers: Rental agreements for dwelling units in Evanston, excluding (5-3-1(D)2): institutional residence (medical, geriatric, educational, religious), contract purchasers, fraternal/social organization structures, transient hotel/motel occupancy, cooperative shareholders, and licensed shared housing facilities.
Worth knowing: No local interest rule; the Illinois Security Deposit Interest Act (765 ILCS 715) still applies to the buildings it covers.

What Illinois law already requires

• Return deadline: 45 days after termination of the tenancy.
• Detail: For landlords with five or more units: an itemized statement within 30 days and the refund within 45 days. Chicago's RLTO has its own 45-day rule and double-deposit penalty.
• Itemized deductions: required in writing.
• Forwarding address: not a statutory condition of getting the deposit back.
• Penalty for wrongful withholding: Bad-faith failure to return or itemize exposes the landlord to twice the security deposit plus attorney's fees.
• Interest: Landlords with 25 or more units must pay interest on deposits held more than six months (765 ILCS 715).
• Small claims limit: $10,000.
• Statute: 765 ILCS 710/1 (Security Deposit Return Act).

Using both rules together

1. Read the lease for the deposit amount, the move-in date, and any clause that mentions the ordinance.
2. Check the local rule first: deposit cap under Evanston City Code § 5-3-5-1, then paying the deposit in installments, return deadline and rent-increase notice.
3. Count the Illinois deadline of 45 days from termination of the tenancy.
4. A written demand that cites both 765 ILCS 710/1 (Security Deposit Return Act) and Evanston City Code § 5-3-5-1 carries more weight than one that cites either alone. Bad-faith failure to return or itemize exposes the landlord to twice the security deposit plus attorney's fees.

Frequently Asked Questions

Q: Does Evanston require interest on security deposits?
A: The Residential Landlord and Tenant Ordinance does not add an interest rule, so Illinois law governs. Landlords with 25 or more units must pay interest on deposits held more than six months (765 ILCS 715).

Q: Is the Evanston deposit return deadline different from Illinois law?
A: Yes. Deposit and prepaid rent not applied to itemized rent or damages must be returned within 21 days after the tenant vacates; wrongful withholding carries double damages and attorney fees. Where the local rule is stricter than 765 ILCS 710/1 (Security Deposit Return Act), the stricter one is the one a landlord has to meet.

Q: Does the Residential Landlord and Tenant Ordinance apply to my unit?
A: Rental agreements for dwelling units in Evanston, excluding (5-3-1(D)2): institutional residence (medical, geriatric, educational, religious), contract purchasers, fraternal/social organization structures, transient hotel/motel occupancy, cooperative shareholders, and licensed shared housing facilities. Check the section cited below for the full list of exemptions before relying on it.

Q: Can I sue my landlord in small claims court for my Illinois deposit?
A: Yes. Illinois small claims court hears claims up to $10,000, which covers most deposits plus the statutory penalty. A dated written demand that cites 765 ILCS 710/1 (Security Deposit Return Act) is the usual first exhibit.

Sources Checked

• Evanston City Code §§ 5-3-5-1, 5-3-6-5 (as amended in entirety by Ord. 52-O-24, adopted July 22, 2024), Residential Landlord and Tenant Ordinance: code text, read 2026-09-20
• 765 ILCS 710/1 (Security Deposit Return Act) (the Illinois statute cited above)
• LeaseLenses Illinois deposit data set, last reviewed 2026-09-19; the same data powers the Illinois demand letter tool
• Illinois landlord-tenant overview and the Illinois deposit rules page

This page is general legal information for Evanston, Illinois, not legal advice. Local ordinances are amended more often than state statutes; read the current code text before relying on a figure in court.