Illinois Leasing Agent Practice Exam

If a property has over 25 units, after how many months is a tenant entitled to interest on their security deposit?

1. 3 months

2. 6 months

3. 12 months

4. 18 months

The correct answer is: 6 months

In Illinois, when a rental property has more than 25 units, the law stipulates that tenants are entitled to interest on their security deposits after a period of 6 months. This regulation is designed to ensure that larger property managers treat tenants' security deposits fairly and transparently. The accumulation of interest is part of the broader measures in place to protect tenants' financial interests. The reason tenants receive interest on security deposits after this specific time frame is to balance the landlord's need to utilize funds for property management while also respecting the tenant's ownership of that deposit. Mandating a waiting period before interest accrues reflects the understanding that the landlord should be responsible for managing security deposits properly, particularly in properties where multiple tenants are involved.