Illinois Leasing Agent Practice Exam

In Illinois, which statement is NOT true regarding security deposits?

1. A landlord may never keep a security deposit without a written explanation

2. A landlord can keep a deposit for damages without explanation

3. A landlord must return the deposit within 30 days

4. A security deposit can be used for unpaid rent

The correct answer is: A landlord may never keep a security deposit without a written explanation

In Illinois, the statement that a landlord may never keep a security deposit without a written explanation is not true. According to state law, a landlord is allowed to retain a security deposit under certain circumstances and is required to provide a written explanation only if they are withholding funds for specific reasons, such as damages or unpaid rent. The accurate understanding of security deposit regulations in Illinois includes that a landlord must return the deposit within 30 days unless they have valid reasons to retain part or all of it, in which case they are required to provide a written account of the deductions. Therefore, the assertion that they can never keep a security deposit without a written explanation is incorrect, as they can indeed keep it under certain conditions without needing to justify every withholding with a written statement upfront.