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In Chicago landlords have to send you an annual check paying out the interest, which during the low interest rate years amounted to 10-30¢ a year. The postage stamp cost more.

In response landlords started to require non-refundable move-in fees in lieu of a security deposit. These can range between about 40-60% of a month's rent.



This is considerably more fair than charging some tenants 100% of a months rent (if they don’t know their rights) and others 0% (if they do). Also the fact the money is gone is stated upfront and agreed to by both parties.


More fair but more deadweight loss for everyone involved.




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