The Fair Housing Act, 42 U.S.C. § 3601, governs landlord-tenant relationships, including security deposit charges. Homeowners and tenants are affected by this federal law.
The effective date of the security deposit provision is January 1, 1971, under Section 804 of the Act.
Security Deposit Standards
The security deposit standard is governed by Section 5-12-080 of the Illinois Compiled Statutes, which limits the security deposit to no more than two months’ rent. In practice, this means landlords cannot charge more than $2,000 for a $1,000 per month rental. The statute also requires landlords to return the deposit within 45 days after the tenant moves out.
In plain terms, the security deposit is intended to cover damages to the rental property, not to punish the tenant. The court may award the tenant up to $100 per day for each day the landlord fails to return the deposit, as stated in Section 5-12-080. This is where the law gets teeth, with specific penalties for non-compliance.
Tenants are protected by the implied warranty of habitability, which requires landlords to maintain a safe and livable environment, as stated in Restatement (Second) of Torts § 364. Landlords who fail to comply may face fines of up to $5,000, as stated in Section 5-12-085 of the Illinois Compiled Statutes.
When the Answer is Yes
Landlords may charge more than the standard security deposit in certain situations, such as for pets or waterbeds, as stated in Section 5-12-080. The additional deposit cannot exceed $100 per pet or $50 per waterbed. In practice, this means landlords can charge a total of $2,200 for a $1,000 per month rental with one pet.
The landlord must provide written notice to the tenant at least 30 days before the effective date of the increased deposit, as stated in Section 5-12-080. The notice must include the amount of the increased deposit and the reason for the increase, such as a new pet or waterbed.
When the Answer is No
The law prohibits landlords from charging excessive or discriminatory security deposits, as stated in 42 U.S.C. § 3604. Landlords who violate this provision may face fines of up to $10,000, as stated in Section 3612 of the Fair Housing Act. The court may also award the tenant actual damages, including $1,000 for each day the landlord fails to comply.
In plain terms, landlords cannot charge different security deposits based on the tenant’s race, color, or national origin. The Fair Housing Act also prohibits landlords from charging security deposits that exceed one month’s rent for tenants who are 62 years or older, as stated in Section 3607.
The Process
Tenants who believe their landlord has charged an excessive security deposit can file a complaint with the U.S. Department of Housing and Urban Development (HUD) within 180 days of the alleged violation. The complaint must include the tenant’s name, address, and a description of the alleged violation, as stated in 24 C.F.R. § 103.10.
The HUD will investigate the complaint and may order the landlord to pay the tenant up to $10,000 in damages, as stated in Section 3612 of the Fair Housing Act. The landlord may also face a fine of up to $10,000, as stated in Section 3612.
Tenants may also file a lawsuit in state court to recover their security deposit, as stated in Section 5-12-080 of the Illinois Compiled Statutes. The lawsuit must be filed within one year of the alleged violation, and the tenant must provide written notice to the landlord at least 10 days before filing the lawsuit.
State-by-State Variation
Some states, such as California and New York, have more restrictive security deposit laws than the federal standard. For example, California limits the security deposit to two months’ rent, as stated in Cal. Civ. Code § 1950.5, while New York limits the deposit to one month’s rent, as stated in N.Y. Real Prop. Law § 7-103.
Other states, such as Texas and Florida, have less restrictive laws. For example, Texas allows landlords to charge a security deposit of up to three months’ rent, as stated in Tex. Prop. Code § 92.109, while Florida allows landlords to charge a deposit of up to two months’ rent, as stated in Fla. Stat. § 83.49.
Special Situations or Exceptions
Domestic Violence
Tenants who are victims of domestic violence may be exempt from certain security deposit requirements, as stated in 42 U.S.C. § 3604. The landlord must provide written notice to the tenant of the exemption, as stated in Section 3607.
In practice, this means tenants who are victims of domestic violence may not be required to pay a security deposit, as stated in Section 3607. The landlord may also be required to provide the tenant with a lockbox or other safety device, as stated in Section 3607.
Senior Citizens
Tenants who are 62 years or older may be exempt from certain security deposit requirements, as stated in Section 3607. The landlord must provide written notice to the tenant of the exemption, as stated in Section 3607.
In plain terms, senior citizens may not be required to pay a security deposit that exceeds one month’s rent, as stated in Section 3607. The landlord may also be required to provide the tenant with a reduced security deposit, as stated in Section 3607.
Enforcement and Consequences
The enforcement of security deposit laws varies by state, but most states have laws that provide for penalties and fines for non-compliance. For example, Illinois provides for a fine of up to $5,000 for non-compliance, as stated in Section 5-12-085 of the Illinois Compiled Statutes.
In practice, this means landlords who fail to comply with security deposit laws may face significant penalties, including fines and damages. The court may also award the tenant attorney’s fees and costs, as stated in Section 3612 of the Fair Housing Act.
- U.S. Department of Housing and Urban Development. tenant rights and fair housing
- Consumer Financial Protection Bureau. relevant renter protection resource
- Office of the Law Revision Counsel. relevant federal housing statute
