Renting an apartment in Chicago can be a taxing process. From finding a reliable tenant to drafting a lease that complies with local ordinances, there are so many elements that must be considered. One question that typically comes up is, what is the difference between a security deposit and a move-in fee?
Security Deposits
Security deposits are typically requested by landlords and property managers as a predetermined deposit that renters must pay prior to moving in. The deposits are typically used by the landlord in two specific instances:
If a tenant causes damages to the apartment beyond normal wear and tear
If a tenant fails to pay rent or fees, and owes the landlord
Once the renter moves out and the tenancy is over, the landlord may deduct the amount needed from the deposit to cover any costs of damage or any outstanding rent or fees owed. If the renter has not caused any damage and does not owe any rent, they will receive the full refund of the security deposit.
Security deposits are highly regulated by the Chicago municipal code, and landlords are required to hold security deposits in a disclosed, separate account in which they must pay interest to the tenant within 30 days from the end of the lease year. If the landlord does not comply with regulations, it is possible that the renter may receive up to 2x the amount of the security deposit.
t is becoming less common for landlords to request a security deposit from tenants due to the risk associated with mishandling the money in violation to the Chicago Residential Landlord Tenant Ordinance.
Move-in Fees
Move-in fees are a completely separate cost that landlords charge to new renters moving in. Unlike security deposits, move-in fees are not regulated and typically are non-refundable. The fees are used to cover the cost of small touch-ups and small changes to an apartment once tenancy is over, or possibly cleaning expenses.
Move-in fees are set by landlords and are typically between $300-$500. Renters that wish to capture an idea of what a move-in fee for a prospective apartment may calculate about 30% to 50% of monthly rent Anything more than that could start to look like a security deposit, and not pass muster under the Chicago ordinance.
Move-in fees and security deposits vary in many ways, however, most landlords require one or the other. It is important to keep this in mind when drafting your apartment listing and your lease.If you have any questions or need further assistance, contact Kershner Sledziewski Law today.
Say I pay a move-in fee before my application has been approved and before I have viewed the apartment (thus I have not signed the lease yet because it has not even been sent out). Then I decide not to sign the lease even though my application has been approved and the lease has been sent to me. Can I be refunded the move-in fee since I have not signed the lease and I will not be moving in?
My landlord wants a $1500 move in to fee is this normal
Can a condominium association charge a move in fee seperate from or in addition to the landlord who owns the condo?
Hi, my landlord is charging a move-in fee, move-out fee, and a security fee (one month’s rent). Is this normal?