Since over a third of Illinois residents rent out units to live in, landlords have a lot of earning potential within the state. There are many candidates looking for new homes, and you have the potential to reach those who will reliably pay rent and keep your unit in good shape. Still, security deposits provide you with some extra reassurance that your property is in good hands.
Read on to learn all about security deposits in the Land of Lincoln and how you can manage your Glenview rental within the boundaries of the law.
What Is a Security Deposit?
A security deposit is a pre-determined amount of money that a renter pays to their landlord before moving in. It binds them to the lease you negotiated with them.
It's a concrete agreement to its terms and provides you with assurance that they will behave well. You return it to them if they pay rent, keep your unit in good shape, and don't engage in misconduct.
Security Deposit Laws in Illinois: A Quick Guide
Illinois has a few laws in place to protect both tenants and landlords who hold their security deposit. There's no maximum charge on a deposit, which means that you can ask for any holdings you want. A sum equal to one or two months' rent is usually a good and fair standard.
When it comes time to return the deposit, you can hold some of it back if the tenant:
- Has failed to pay rent
- Created damage beyond normal wear and tear
- Caused any other issues that you explicitly state in the lease
The holdings cannot exceed the sum that you lost. The deposit isn't meant to be extra income. It's meant to pay for missed rent or tenant damage after they move out.
If the tenant has paid rent and behaved well, you need to return the deposit within a 45-day period. If a deduction is being made, you only have 30 days to send them an itemized statement that shows what you're holding and why.
How Can Property Management Services Help You?
Failing to return a security deposit can land you in a lot of legal hot water. Unfortunately, you may have a lot of rental units or are juggling your landlord duties with other priorities. This understandably makes it difficult to remember all the tenant/landlord laws Illinois has in place.
Quality property managers can return security deposits for you. They can also inspect the property to make sure it's in good shape after renters move out. They'll also tell you if you're missing rent because they'll have done the dirty work of collecting it from tenants for you.
They also can take security deposits from new renters after old ones move out and store them in a legal holdings account. It's a great way to stay organized and compliant with tenant laws.
Beyond the Basics of Security Deposits
Now that you know the ins and outs of security deposits in Glenview, IL, it's time to begin managing your property the right way. Our team is excited to help you find great tenants and collect security deposits from them in compliance with all Illinois state laws. Schedule a free rental analysis from PMI Metro and Suburban to learn your earning potential and get started.
