City of Chicago sets security deposit interest rate for 2015

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.