Overview
Ohio is one of the states that does not impose a statutory limit on the amount a landlord may charge for a security deposit. However, Ohio law does include important protections for tenants, including interest requirements for larger deposits and a 30-day return timeline. These rules are found in Ohio's Landlord-Tenant Law under Ohio Revised Code Chapter 5321.
This guide covers everything landlords and tenants need to know about security deposits in Ohio.
Deposit Limits
Ohio law does not set a maximum security deposit amount. Key rules include:
- No statutory cap: Landlords may charge any amount they deem appropriate as a security deposit
- Interest required: If the deposit exceeds $50 or one month's rent (whichever is greater) and the tenancy lasts more than six months, the landlord must pay 5% annual interest to the tenant
- Interest payments: Interest accrues beginning on the first day of the tenancy and must be paid annually to the tenant
- Market considerations: While there is no legal cap, market conditions typically keep deposits between one and two months' rent
Interest Calculation
The 5% annual interest applies to deposits that exceed the threshold. Interest must be paid annually, and tenants are entitled to receive the accrued interest upon termination of the rental agreement. The landlord may deduct from the interest the amount of any unpaid rent or damages.
cite: Ohio Rev. Code § 5321.16(A)
Allowable Deductions
Landlords may only deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Damage beyond normal wear and tear: Costs to repair tenant-caused damage
- Cleaning costs: Costs to restore the unit to its move-in condition beyond normal wear
- Late charges and fees: As specified in the lease agreement
- Unpaid utilities: If the tenant is responsible under the lease and failed to pay
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls
- Small nail holes from hanging pictures
- Worn carpet from regular use
- Faded paint due to sunlight
- Minor marks on floors from everyday use
Damage beyond normal wear and tear includes:
- Large holes in walls
- Stained or burned carpet
- Broken windows or fixtures
- Unauthorized alterations to the unit
- Excessive filth requiring professional cleaning
Return Timeline
Landlords must return the security deposit within 30 days of the tenant vacating the unit and providing a forwarding address. The return must include:
- The remaining deposit amount (if any deductions were made)
- An itemized written statement listing each deduction and the amount
- Any accrued interest that is owed
Important: The tenant must provide a forwarding address in writing to the landlord. If the tenant fails to provide a forwarding address, the landlord is not obligated to return the deposit until the address is provided, but must still do so within 30 days of receiving it.
If the landlord fails to return the deposit or provide the required documentation within 30 days, the tenant may recover the deposit amount plus damages and reasonable attorney's fees.
cite: Ohio Rev. Code § 5321.16(B)
Pre-Move-Out Inspection
Ohio law does not require landlords to conduct a pre-move-out inspection. However, both parties are encouraged to document the condition of the premises at move-in and move-out.
Recommended steps include:
- Completing a written inventory checklist at move-in, signed by both parties
- Conducting a walkthrough with the tenant before move-out
- Documenting the condition of the unit with photographs or video
- Comparing the move-out condition to the move-in inventory
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit
- File a claim in Small Claims Court (up to $6,000)
- File a complaint with the Ohio Attorney General's Consumer Protection Section
If the court finds the landlord wrongfully withheld the deposit, the tenant may recover the amount wrongfully withheld plus damages equal to the amount wrongfully withheld, along with reasonable attorney's fees. This effectively doubles the penalty for landlords who act in bad faith.