A Word of Caution to Our Landlords

In 2009, for the first time, the interest rate prescribed by the City of Chicago for security deposits for leases subject to the Residential Landlord Tenant Ordinance ("RLTO") is less than the rate specified by the Illinois Security Deposit Interest Act ("SDIA").  The SDIA rate is .25% for 2009 leases while the Chicago rate for 2009 leases is only .12%.  Why is this important? An argument can be made that the SDIA rate must be paid on all Chicago leases for 2009 for buildings with 25 or more units. Failure to do say may expose the landlord to liability under SDIA.  This situation has not been decided by a court as of yet, but is sure to catch some landlords off guard.  Consult an attorney experienced in these matters to learn how your particular situation may be affected.