How many units does the security deposit act apply to?

The security deposit act in Illinois applies specifically to residential properties that have five or more units. This means that the law sets guidelines and regulations regarding handling security deposits for multi-family housing arrangements, ensuring protection for tenants in larger buildings. The rationale behind this legislated threshold is to provide a layer of security and accountability in scenarios where property owners may have a greater number of tenants and, therefore, potentially more financial interactions involving security deposits.

Properties with fewer than five units are not covered under this act, leaving those arrangements subject to different stipulations or general landlord-tenant regulations. This helps streamline the management of security deposits in larger residential complexes, ensuring a standardized approach that benefits both tenants and landlords while fostering clear expectations about the handling of security deposits.