2013 Chicago Security Deposit Interest Rate Summary released for CRLTO covered properties

2013 security deposit interest rate summary CRLTOThe City of Chicago has released the new 2013 version of the separate security deposit interest rate summary required to be attached to leases covered by the Chicago Residential Landlord Tenant Ordinance executed in 2013.

This is the second of the two summaries required by Section 5-12-170 of the Chicago Residential Landlord Tenant Ordinance.

Landlords with CRLTO covered rental agreements must attach a copy of this summary (and the ordinance summary)  to each written rental agreement when the lease is initially offered to any tenant or prospective tenant whether the lease is for a new rental or a renewal of a previous tenancy.  In the case of an oral rental agreement, the landlord must still give the tenant a copy of the interest rate summary (and the ordinance summary).

Landlords need to be careful here!  The exact wording of the ordinance does not provide any exceptions to the requirement to provide both the ordinance summary and the separate security deposit interest rate summary – even if a landlord is not taking a security deposit.  The penalties for failure to provide both summaries can be harsh.

When a tenant does not receive both summaries, the tenant has a number of rights.  First, the tenant can terminate the lease by written notice of not more than 30 days.  Second, the tenant can sue the landlord and win damages of one hundred dollars.  That’s right – one hundred dollars.  Why would a tenant do that?  Oh yeah, that nasty little provision at 5-12-180 of the CRLTO which also provides that a tenant may also recover their attorney’s fees from the landlord.

This is no joke. Be careful.  Use the most up to date summaries.  Give both summaries.  Good luck!

About Richard Magnone

Co-founding member of Reda | Ciprian | Magnone, LLC, attorney at law and Illinois licensed lawyer since 1996.
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