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How can Urbana landlords owe tenants money?

How?

     Many landlords do not abide by the Urbana Code of Ordinances security deposit rules.  To tackle this problem, the Urbana City Council has enacted tough penalties for landlords and large cash awards for tenants to  encourage tenants to enforce their own rights.  Prevailing tenants in some security deposit suits don't have to pay their lawyer, because the law says their landlord has to.  These harsh penalties are meant to encourage landlords to follow the Urbana Code.  The Urbana Code provides for cash awards to tenants whose Urbana Code security deposit rights are violated by their landlord. 

What Landlords Have to Pay Deposit Interest?

     Unlike the Chicago and statewide Illinois security deposit laws, which only apply to certain landlords, the Urbana security deposit rules apply to almost every tenant who gives a security deposit of $100 or more, even if they are renting a condo unit or single family home.

     Also, Urbana landlords who own or operate any apartment complex with 25 or more units must pay interest on security deposits of any amount - even deposits less than $100.  If you gave your Urbana landlord a $100 or greater security deposit or if your Urbana landlord has at least one property with 25 or more units, interest is due every 12 months.

Deposit Interest Payments Required at the end of Every Single 12-month Rental Period

     The Urbana Code requires Urbana landlords to pay interest on a tenant's security or pet deposit within 30 days of the end of every single year of tenancy... even in the case of a multiple-year tenancy.  Thus, a landlord who pays two years-worth of interest on a security deposit after a two-year tenancy has probably broken the law, because interest must be paid at the end of every single year of tenancy.  The interest must also be paid at a specific rate (which is changed each year), and within a specific time frame (within 30 days of the end of the lease).  A landlord's willful failure to comply with either of these requirements can be a violation of the Urbana Code.  A lawyer can help you prove your landlord's failure to pay you was willful.

Deposit Return Rules After Move-Out

     A landlord is also required to send to tenants an accounting of what amounts the landlord intends to withhold from a tenant's security deposit within 30 days from the date a tenant vacates (moves out of) their apartment - even if that date is before the last day of the lease.  This distinction is a common cause of confusion amongst landlords, and often results in an accounting statement being sent within 30 days after the end of the lease but not within 30 days of the tenant vacating... a violation of the Urbana code.

     Besides sending the written statement, the landlord also must supplement the charges on that statement with paid receipts which prove they actually spent the money they withheld on repairing your apartment.  These receipts can be given to you up to 30 days after the written statement is provided. 

Conclusion

     The Urbana Code offers tenants exemplary money damage awards plus attorney fees when a landlord doesn't follow the security deposit rules because the Urbana City Council wants tenants to enforce their rights.  The award is an amount equal to or even two times the security deposit, and does not include the original security deposit itself.  Thus, a landlord's failure to pay a couple of dollars in interest on a $500 security deposit at the right time or amount can result in an award of $500 for a tenant... and the tenant is still entitled to return of their $500 security deposit.  Nevertheless, many landlords in Urbana either don't know or don't care enough to follow the rules.  A landlord like that might owe you money.

     Click HERE to fill out a free, no-obligation questionnaire that will be reviewed to determine if your landlord might owe you money. 

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Selections from the

Urbana Code of Ordinances

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Sec. 12.5-19. Same--Security deposit interest.

(a)     A landlord who receives a security deposit of one hundred dollars ($100.00) or more from a tenant to secure the payment of rent or to compensate for damage to property shall pay interest to the tenant, computed from the date the deposit is paid, at a rate equal to the interest paid by the largest commercial bank, as measured by total assets, having its main banking premises in Champaign County, Illinois, on minimum deposit passbook savings accounts as of the thirtieth of June immediately preceding the inception of the rental agreement on any such deposit held by the landlord for more than six (6) months.

(b) The landlord shall, within thirty (30) days after the end of each twelve-month rental period, pay to the tenant any interest, by cash or credit to be applied to rent due, except when the tenant is in default under the terms of the lease. For the purposes of this provision, default shall mean nonpayment of rent or a successful claim by the landlord for possession of the premises for good cause other than nonpayment of rent. A landlord who willfully fails or refuses to pay the interest required by this article shall, upon a finding by a circuit court that he/she has willfully failed or refused to pay, be liable for an amount equal to the amount of the security deposit, together with court costs and reasonable attorney's fees.

Sec. 12.5-20. Same--Security deposit return.

(a)     A lessor of residential real property who has received a security deposit from a lessee to secure the payment of rent or to compensate for damage to the leased property may not withhold any part of that deposit as compensation for property damage unless he or she has, within thirty (30) days of the date that the lessee vacated the premises, furnished to the lessee, delivered in person or by mail directed to his or her last known address, an itemized statement of the damage allegedly caused to the premises and the estimated or actual cost for repairing or replacing each item on that statement, attaching the paid receipts, or copies thereof, for the repair or replacement. If the lessor utilizes his or her own labor to repair any damage caused by the lessee, the lessor may include the reasonable cost of his or her labor to repair such damage. If estimated cost is given, the lessor shall furnish the lessee with paid receipts, or copies thereof, within thirty (30) days from the date the statement showing estimated cost was furnished to the lessee, as required by this section. If no such statement and receipts, or copies thereof, are furnished to the lessee as required by this section, the lessor shall return the security deposit in full within forty-five (45) days of the date that the lessee vacated the premises.

(b) Upon a finding by a circuit court that the landlord has refused to supply the itemized statement required herein, or has supplied such statement in bad faith, and has failed or refused to return the amount of the security deposit due within the time limits provided, the landlord shall be liable for an amount equal to twice the amount of the security deposit due, together with court costs and reasonable attorney's fees.