Landlords - Chicago Comptroller sets security deposit interest rate
The Chicago Residential Landlord and Tenant Ordinance (RLTO) requires the City Comptroller to set the rate of interest to be paid on security deposits held by landlords. The rate is calculated annually based on a formula tied to actual market rates.
The new rate of 1.26% applies to all residential rental agreements in which the lease term begins from January 1, 2008 through December 31, 2008. The rate of interest on security deposits is determined by the rate in effect on the date the lease term begins. Owner occupied buildings of six units or less are not required to pay interest on security deposits.
The interest rate to be paid on security deposits for apartments outside Chicago has been set by the State of Illinois at 0.35%.
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3 comments:
Hi,
Can a condo association require a separate security deposit for renters? My building has six units. In our house rules, it states that only one condo at a time can be rented out. It also states that a security deposit equal to one month's rent must be given to the condo association. Is this legal? I doubt that I am going to get any renter to give me an amount equal to two months rent (one for me, one for the association.) Thanks.
First let me do the disclaimer - I am not a lawyer and what I'm about to say is based on my years of management experience and not intended as legal advice.
Now to your question: It is my understanding after having asked several lawyers over the years questions very similar to this that the practice of treating Renters (or owners who rent) different from all other owners is illegal. The basic jist is that an association can not create "separate classes of ownership" (ie - one set of rules, regs & fees for resident owners and a different set for investment owners).
However, if you association charges a deposit for ALL owners regardless of status, they might be able to get away with it.
I'd question your board. If they insist, you should suggest to them that before they try to enforce it, they should run it past the association's attorney in order to save themselves some expensive problems.
Thanks so much for the quick reply. I lived in the building for two years before moving out and opting to rent. There is no deposit for all of us.
I will contact the board and a lawyer.
Thanks.
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