Free Illinois Application Denial Letter Template

Last reviewed August 2026

Written by LawLease Editorial

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Illinois Application Denial Letter

This Application Denial Letter is built with Illinois as the governing state. These are the Illinois landlord-tenant rules that most often bear on it, with the statute for each.

Illinois rules at a glance

Illinois rules for an Application Denial Letter
Security deposit limit	No statewide cap (Cook County caps at 1.5 months’ rent)
Deposit itemization	30 days to give a written itemized statement of damages765 ILCS 710/1
Deposit return	45 days for the full deposit if no itemized statement is given765 ILCS 710/1
Deposit interest	Only for buildings of 25+ units on contiguous parcels765 ILCS 715/1
No statewide escrow rule	Illinois does not require a segregated or interest-bearing account statewide. Chicago and Cook County do — and require the tenant be told which institution holds the money.

Security deposits in Illinois

Illinois sets no statewide cap on how much a landlord may collect as a security deposit, but it is strict about giving it back. If the landlord withholds anything for damage, a written itemized statement is due within 30 days of the tenant vacating, with paid receipts to follow within a further 30 days. If no itemized statement is furnished at all, the entire deposit must be returned within 45 days (765 ILCS 710/1).

Public Act 103-224, effective January 1, 2024, deleted the old “five or more units” threshold. The Security Deposit Return Act now reaches every residential landlord in Illinois, including someone renting out a single unit.

Bad-faith penalty — A landlord who refuses to itemize, itemizes in bad faith, or misses the deadline is liable for twice the wrongfully withheld amount plus court costs and reasonable attorney’s fees (765 ILCS 710/1(b)).
Interest is unit-gated — Interest on the deposit is owed only by landlords of buildings or complexes on contiguous parcels with 25 or more units, at the rate paid on passbook savings by the largest Illinois commercial bank, on deposits held more than six months (765 ILCS 715/1). Below 25 units, state law requires no interest at all.
No statewide escrow rule — Illinois does not require a segregated or interest-bearing account statewide. Chicago and Cook County do — and require the tenant be told which institution holds the money.

Illinois Application Denial Letter FAQs

How much can a landlord charge for a security deposit in Illinois?

There is no statewide cap — Illinois law limits how the deposit is returned, not how large it is. Suburban Cook County is the exception: its ordinance caps deposits at 1.5 months’ rent and lets the tenant pay any excess in up to six installments.

How long does a landlord have to return a deposit in Illinois?

If the landlord is deducting for damage, a written itemized statement is due within 30 days of the tenant vacating, with paid receipts within another 30 days. If no itemized statement is given, the full deposit is due within 45 days (765 ILCS 710/1). Missing the deadline exposes the landlord to twice the withheld amount plus attorney’s fees.

Does an Illinois landlord have to pay interest on the deposit?

Only if the building or complex has 25 or more units on contiguous parcels (765 ILCS 715/1). Below that, state law requires no interest. Chicago is different — the RLTO requires interest regardless of how many units the building has.

Application Denial Letter in other states

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