Overview
Security deposits in Ohio are governed by laws that balance the rights of tenants and landlords. These regulations outline clear rules for how deposits must be collected, handled, and returned at the end of a lease.
Under Ohio Revised Code § 5321.16, landlords must comply with specific procedures regarding the return and use of security deposits. Violations may result in penalties and loss of the right to retain withheld amounts.
This guide covers:
How much landlords can charge
Where deposits must be stored
Rules for returning security deposits
Penalties for non-compliance
Related Statute: Ohio Rev. Code § 5321.16
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Ohio does not impose a statewide limit on the amount a landlord can charge as a security deposit.
Storage requirements: There is no legal requirement for landlords to store the deposit in a separate or interest-bearing account unless it exceeds $50 or one month’s rent.
Tenant notification: There is no requirement to notify tenants of where the deposit is being held.
Law Reference: Ohio Rev. Code § 5321.16(A)
2. Security Deposit Returns & Allowable Deductions
Return deadline: Landlords must return the security deposit within 30 days after the termination of the lease and delivery of the tenant’s forwarding address.
Permissible deductions: Deductions may be made for unpaid rent, damage beyond normal wear and tear, and any other legitimate costs resulting from a breach of the lease.
What landlords cannot deduct: Landlords may not charge for ordinary wear and tear such as worn carpet or minor wall marks.
Itemized statement required: If any deductions are made, landlords must provide a written itemized statement along with the balance of the deposit.
Law Reference: Ohio Rev. Code § 5321.16(B)
3. Interest Payments & Documentation Requirements
Interest payments: If the security deposit exceeds $50 or one month’s rent and the tenant occupies the unit for six months or more, the landlord must pay annual interest at a rate of 5%.
Move-in condition report: Not required by state law, but both parties are encouraged to document the property condition at move-in.
Tenant review period: Tenants are advised to inspect and document the property at both move-in and move-out to avoid disputes.
Failure to provide documentation: Landlords who fail to return the deposit or provide an itemized list of deductions may forfeit the right to retain any portion.
Law Reference: Ohio Rev. Code § 5321.16(A), (B)
4. Penalties for Mishandling Security Deposits
Ohio imposes penalties for failure to comply with deposit return laws.
Failure to return the deposit within 30 days may result in the landlord being liable for the amount wrongfully withheld, plus damages equal to the amount withheld and reasonable attorney fees.
Failure to pay interest when applicable may also result in the tenant seeking reimbursement through legal channels.
Law Reference: Ohio Rev. Code § 5321.16(C)
Key Takeaways
There is no limit on security deposit amounts, but interest must be paid on deposits exceeding $50 or one month’s rent if held for more than six months.
Deposits must be returned within 30 days, with an itemized statement if any deductions are made.
Only specific deductions are allowed, and normal wear and tear cannot be charged.
Failure to comply may result in double damages and payment of legal fees.
By understanding and following Ohio security deposit laws, landlords can maintain legal compliance, and tenants can ensure their rights are protected.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
