Chicago Move-In Fees vs. Security Deposits: RLTO Rules (2026)

In Chicago, a security deposit is the renter’s money and is tightly regulated by the Residential Landlord and Tenant Ordinance (RLTO): it must be receipted, held at an Illinois financial institution, earn interest if held more than six months, and be returned within 45 days of move-out. A non-refundable move-in fee is different: it is paid to the landlord and is not returned, and the RLTO’s deposit rules do not mention it. Since July 1, 2026, Illinois Public Act 104-0479 adds statewide rules for covered leases: a $50 cap on application fees and every non-optional fee listed on the first page of the lease.

Key takeaways

Deposit: refundable; the RLTO requires a receipt, a separate interest-bearing account at an Illinois institution, and return within 45 days of move-out.
Move-in fee: non-refundable and kept by the landlord; the RLTO deposit section does not address it.
Penalty: a landlord who breaks the RLTO deposit rules can owe the renter two times the deposit plus interest.
Interest: the City rate was 0.01% for 2025, and is reported as 0.01% for 2026.
Late fees: capped at $10 a month on the first $500 of rent plus 5% of rent above $500.
New Illinois fee rules (July 1, 2026): application fees capped at $50, all non-optional fees on page one of the lease, and fees disclosed in listings.

What is the difference between a move-in fee and a security deposit?

A security deposit is held against unpaid rent or damage and belongs to the renter until the landlord makes lawful deductions. Chicago’s RLTO (Municipal Code 5-12-080) controls how it is receipted, stored, earns interest and comes back. A move-in fee is a one-time charge that the landlord keeps; the RLTO summary and the deposit section of the code do not mention move-in fees. The Real Deal reported in April 2025 that many Chicago landlords had replaced deposits with non-refundable move-in fees, often hundreds of dollars (renters it interviewed cited $500 to $1,000), to limit their exposure under the RLTO.

What does the RLTO require for security deposits?

A signed receipt showing the amount of the deposit.
The deposit held in a federally insured, interest-bearing account at an Illinois financial institution, not mixed with the landlord’s own money.
The name and address of the bank in the written lease (or given in writing within 14 days if there is no written lease).
Interest paid each year on deposits held more than six months.
The deposit returned within 45 days after move-out, with an itemized statement of any damage deductions (with receipts) within 30 days.

A landlord who fails to follow these rules can owe the renter two times the security deposit plus interest. The code sets no maximum deposit amount in its deposit sections.

What is the Chicago security deposit interest rate?

The City comptroller sets the rate each year. The City’s published rate for January 1 to December 31, 2025 is 0.01%. The Chicagoland Apartment Association reports that the 2026 City of Chicago rate remains 0.01%, and that the 2026 Illinois state rate, which applies under a separate state law, is 0.005%.

What fees did Illinois limit in 2025 and 2026?

Electronic payment fees (from January 1, 2025): Public Act 103-0809 says that if paying rent online through a third party carries a fee, the landlord must also offer a way to pay without that fee, such as check or cash; it applies to leases signed after that date.
Screening reports (from January 1, 2025): Public Act 103-0840 bars charging a fee to access a qualifying screening report the applicant supplies that is less than 30 days old.
Rental fees (from July 1, 2026): Public Act 104-0479 caps application fees at $50, requires every non-optional fee to be on the first page of the lease and disclosed in listings, and bars fees for lease renewals, routine maintenance and move-in or move-out walk-throughs. It exempts owner-occupied buildings with six or fewer units and applies to leases entered after it took effect.

What are the RLTO late-fee limits?

Chicago caps late fees at $10 per month for the first $500 of monthly rent plus 5% of any amount above $500. For a $2,000 monthly rent, that works out to at most $10 + $75 = $85.

Which Chicago rentals does the RLTO cover?

Most Chicago rental apartments. The RLTO summary lists exclusions including units in owner-occupied buildings with six or fewer units, owner-occupied co-ops and condos, employee housing, and hotel or motel units unless rent is paid monthly and the stay is longer than 32 days. The RLTO summary must be attached to every written lease.

How do fees affect the value of a move-in special?

A move-in special lowers what you pay over the lease, while a move-in fee raises what you pay at the start. To compare buildings, add the fees to the total rent, subtract the free rent or credit, and divide by the lease length. Our net effective rent guide explains the math, and every current Chicago move-in special is listed on our home page.

This page summarizes public sources for general information and is not legal advice. For a specific situation, contact a lawyer or a tenant-rights organization.

FAQ

Is a move-in fee the same as a security deposit in Chicago?

No. A security deposit stays the renter’s money and must be held and returned under Chicago’s Residential Landlord and Tenant Ordinance (RLTO). A non-refundable move-in fee is paid to the landlord and is not returned. The RLTO’s deposit rules do not mention move-in fees.

How fast must a Chicago landlord return a security deposit?

Under the RLTO, within 45 days after the renter moves out. If the landlord deducts for damage, an itemized statement with receipts is due within 30 days of move-out.

What is the Chicago security deposit interest rate for 2026?

The Chicagoland Apartment Association reports the 2026 City of Chicago rate as 0.01%, the same as the City’s published 2025 rate. The City comptroller sets the rate each year.

What can a Chicago landlord charge for a late rent payment?

The RLTO caps late fees at $10 per month on the first $500 of monthly rent plus 5% of any rent above $500.

How much can an Illinois landlord charge for a rental application?

Under Illinois Public Act 104-0479, effective July 1, 2026, application fees, including background checks, are capped at $50 for covered leases.

Does a move-in fee have to be listed in the lease?

For covered leases entered into after the law took effect on July 1, 2026, Illinois Public Act 104-0479 requires every non-optional fee to appear on the first page of the lease, and fees must also be disclosed in listings.

Does the RLTO cover every Chicago apartment?

No. It excludes, among others, units in owner-occupied buildings with six or fewer units, owner-occupied co-ops and condos, employee housing, and most hotel stays.

Do move-in specials change these rules?

A move-in special such as free rent or a credit does not change the deposit, fee or late-fee rules. Compare the net effective rent and the full fee list on the lease before signing.

Sources

Last updated November 9, 2026.