Why Security Deposits In Chicago Are A NO NO!
This isn't meant to be a long post but I have a lot of first time investors and house hackers or just investors that are new to Chicago that ask about charging a security deposit and my answer to them is NEVER charge a security deposit. Chicago is a city that heavily favors the tenants rights over the owner. If you even so as forget to give the tenant $1 back from their security deposit, they legally can sue you for up to 4 times the amount of the initial security deposit. What you will see instead in Chicago and what I always recommend my client's do is charge a move in fee. Even with a move in fee, if a tenant damages something, you still have the right to take them court in which you will more than likely win and they still would have to pay you for those damages or risk having a negative mark on their credit which would make it extremely difficult to be able to rent on their own again until it falls off the report. Most people will figure out a way to pay for the damages rather than having that hanging over their heads for 7 years until it's fallen off their credit. So in short, I strongly do not encourage taking security deposits because of such the high risk to the owner/landlord and just try to look more into the landlord/tenant laws in Chicago.