Many condo associations use this as a way of recovering the cost of administering the change of updating mailboxes, reprogramming buzzers, changing directories etc. or just as a way of making a little extra money.
Your Real Friend in Chicago Real Estate
A security deposit would have to be returned if you moved out with proper notice, no distressing damage to the place. It's a CYA for the owner in case you move out suddenyly or trash the place. Then he/she can repaint, change the locks, clean, advertise, etc.
But a move in fee is worse than posting bond. It's a fee they can keep even if you are a perfect tenant. And move-in fees are going up -- I've seen as high as $350. Plus application fees and credit check fees and... why play that game?