Oak Park Title 12 Residential Rental Licensing (Arts. 2, 4, 6) § 12-4-3
INTEREST TO BE PAID BY LESSOR ON SECURITY DEPOSITS; RATE
Operative Text
A lessor of residential real property, containing four (4) or more units, who receives a security deposit from a lessee to secure the payment of rent or compensation for damage to property shall pay interest to the lessee within thirty (30) days of termination of the lease agreement. Such interest shall be computed from the date of the deposit through the date of payment of the interest at a rate equal to the interest paid by the largest commercial bank, as measured by total assets, having its main banking premises in this state, on minimum deposit passbook savings accounts as of December 31 of the calendar year immediately preceding the inception of the rental agreement, on any deposit held by the lessor for more than six (6) months. Such interest rate shall be set forth in the rental agreement. (Ord. 1993-0-100, 12-6-1993; amd. Ord. 15-184, 11-2-2015, eff. 12-1-2015)
Under Oak Park Title 12 Residential Rental Licensing § 12-4-3, landlords who own residential buildings with four or more units and collect security deposits must pay interest on those deposits to tenants within 30 days after the lease ends. The interest rate is tied to the rate paid by the largest commercial bank in Illinois on minimum-deposit passbook savings accounts as of December 31 of the year before the lease began, and it applies to any deposit held for more than six months. The applicable interest rate must also be disclosed in the rental agreement itself.
Plain English — not legal advice.
Operators of residential properties with four or more units in Oak Park should be aware that § 12-4-3 requires them to calculate and remit interest on security deposits within 30 days of lease termination. The rate is determined by looking up the passbook savings rate offered by the largest Illinois commercial bank (by total assets) as of December 31 of the year before the lease commenced, and that rate must be stated in the rental agreement. Compliant operators typically track the applicable rate at lease signing, document it in the lease, and maintain records sufficient to calculate the correct interest payment at move-out.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under Oak Park Title 12 § 12-4-3, tenants living in buildings with four or more units have a right to receive interest on their security deposit within 30 days after their lease ends, provided the deposit was held for more than six months. If a landlord fails to pay the required interest, tenants may have grounds to raise that failure as a legal claim or defense in a dispute over the deposit. Tenants who believe this provision has not been followed may consider consulting a local tenant-rights organization or reviewing Oak Park's municipal code enforcement options for further guidance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated November 10, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
Rules and statutes that cite this regulation