Well, it’s that time of year when the City of Chicago sets its annual interest rate for security deposits. For those residential rentals covered by the Chicago Residential Landlord Tenant Ordinance, Section 5-12-080 requires landlords to pay interest on security deposits. The interest rate is adjusted annually. This year, the rate is a staggering .01%.
As a small aside, .01% on your calculator is .0001. So, the interest due on a $1000 security deposit is 10 cents. If a landlord fails to pay that 10 cents on time, the landlord is on the hook to pay the tenant $2000 plus court costs plus attorney’s fees. Frankly, that’s insane. It is, however, very much the law and is strictly enforced by the courts in Cook County.