Illinois Leasing Agent Practice Exam

To whom does the Illinois Security Deposit Return Act apply?

1. Only to commercial properties

2. Only to residential properties

3. To both commercial and residential properties

4. Only to new constructions

The correct answer is: Only to residential properties

The Illinois Security Deposit Return Act specifically applies to residential properties. This legislation is designed to protect tenants in residential rentals by setting guidelines on how landlords must handle security deposits. It stipulates that landlords must return security deposits within a specific time frame after a tenant vacates the property and provides an outline of the conditions under which deductions may be made for damages or unpaid rent. Since the Act focuses on residential rentals, it does not extend to commercial properties, which are governed by different regulations. This clearly establishes that residential tenants have specific rights and protections regarding their security deposits, reflecting the intention to maintain fairness and transparency in residential leasing practices. This is the key reason for the applicability of the Act solely to residential properties, rather than to commercial ones or limited to new constructions.