Legal Question in Landlord & Tenant Law in Illinois

Can you start a business in Illinois that could act as an alternative to a security deposits that are typically due at move in? An example, charge $20/month as an alternative to a $1,600 deposit. In the event a tenant defaults, etc. the building/landlord can submit a request for payment. Any guidance or response would be appreciated.


Asked on 9/09/14, 6:33 pm

1 Answer from Attorneys
Stephen Messutta

I don't get it, I don't know who would want to sign up for it, and I don't see how you make any money. Setting that aside, it will depend on how you set yourself up and whether any governmental agency thinks that you or your company should be licensed. In Illinois anyone who is effectively holding other peoples' money (other than as a friend on trust or something) is a fiduciary of some kind and most likely requires certification, licensing, and some kind of bonding or fidelity insurance -- like a bank.

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Answered on 9/10/14, 1:00 pm


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