Illinois Leasing Agent Practice Exam

What is true regarding a landlord's obligation related to a tenant's security deposit after a tenant vacates?

1. The landlord owes interest on the security deposit.

2. The landlord can keep the deposit without notice.

3. The landlord owes the tenant no interest on the security deposit.

4. The landlord must return the deposit within 7 days.

The correct answer is: The landlord owes the tenant no interest on the security deposit.

In the context of Illinois law regarding security deposits, a landlord's obligation is nuanced, particularly when a tenant vacates a rental property. The correct statement highlights that the landlord owes the tenant no interest on the security deposit. In Illinois, while some states require landlords to pay interest on security deposits, Illinois does not impose such a requirement under all circumstances. This means that once a tenant has vacated the property, the landlord is not obligated to return any interest accrued on that security deposit, as there is no statutory requirement for landlords to do so. This understanding is critical for both tenants and landlords: tenants should be aware that they generally will not receive interest on their deposits, and landlords should be informed about their legal obligations to avoid any misinterpretation of their rights when managing these funds. The other options would not accurately reflect the obligations set forth in state law regarding security deposits, particularly concerning the presence of any interest obligations or the timeline for returning the deposits.