Ohio security deposit law provides landlords with the clarity they need to avoid issues such as unclear deductions, missed return deadlines, or improper handling of tenant funds.
In this article, you can learn all you need to know about these regulations, including maximum deposit amounts, proper storage practices, required interest, lawful deductions, deposit returns, dispute resolution, and more.
Statutes Regulating Ohio Security Deposits
Ohio’s security deposit rules are set out in Section 5321.16 of the Ohio Revised Code, which outlines how landlords collect, hold, deduct from, and return tenant deposits.
Maximum Security Deposit Amounts Under Ohio Law
Ohio law sets no legal maximum on the amount landlords can collect for security deposits. Landlords choose any amount they consider appropriate for their properties. Further, the amount does not change based on lease type, contract length, or other terms.
Ohio offers no exceptions to deposit limits.
Security Deposit Storage Regulations
Ohio law doesn’t dictate how landlords must store security deposits. The statutes do not require a separate account, a specific type of bank, or a receipt. With no storage standards in place, landlords may hold deposits in any reasonable manner they see fit.
Security Deposit Interest in Ohio
Ohio law requires landlords to pay interest on the portion of a security deposit that exceeds the greater of $50 or one month’s rent, provided the tenant has stayed at the rental unit for at least 6 months. Landlords must pay five percent annual interest on that excess amount directly to the tenant.
Making Security Deposit Deductions
Security deposit deductions help landlords protect the property’s overall health. Tenants sometimes skip out on rent or leave damage that goes beyond normal wear and tear. As such, landlords must use deposit funds to cover these expenses and make themselves whole.
When Landlords Can Deduct
Ohio landlords may draw from a tenant’s security deposit for the following reasons:
- Repair costs for damage beyond normal wear and tear
- Unpaid rent that remains outstanding at the end of the lease term
- Cleaning charges are needed to return the unit to an acceptable condition
- Replacement of missing items listed in the original rental agreement
- Costs to correct unauthorized alterations or unapproved modifications to the unit
When Landlords Can’t Deduct
Ohio landlords may not draw from a tenant’s security deposit for the following reasons:
- Routine cleaning tasks that occur during standard turnover between occupants
- Minor cosmetic issues arising from regular, expected daily use
- Expenses tied to improvements or upgrades unrelated to tenant damage
- Natural aging of appliances, flooring, or fixtures used as intended
- Costs connected to routine property maintenance that landlords must complete
Necessary Documentation to Accompany Deductions
Ohio law requires landlords to give tenants a written, itemized list of all security deposit deductions. The statement must show each charge and the total amount withheld. Landlords do not need to attach receipts, invoices, or other documents; only a written list of itemized deductions is required.
What to Do When Deductions are Greater Than the Deposit
Sometimes damage or unpaid rent goes beyond the amount held in the security deposit. When that happens, an Ohio landlord may contact the former tenant and request payment for the remaining balance. State law does not set a specific timeframe for collecting this amount, so landlords should keep clear records in case additional steps become necessary.
Landlords who cannot collect the balance may hire a collection agency or file a claim in their local Ohio small claims court to make themselves whole.
Returning Security Deposits to Tenants
Ohio law outlines how landlords must return any remaining portion of a tenant’s security deposit after making eligible deductions. Here is an overview of the regulations.:
Required Timeline for Return
Ohio landlords must return any remaining security deposit to the tenant within 30 days after the tenant moves out and provides a forwarding address. (The 30-day period starts once the landlord receives that address.) Landlords must also include a written, itemized list of any deductions taken from the deposit.
Method for Return
Ohio law does not require a specific payment method, so that a landlord may return the deposit by check, electronic transfer, or another reasonable form of payment. When a landlord withholds any portion of the deposit, the return must include a written, itemized list of deductions.
Penalties for Late Return
Ohio landlords who fail to return the deposit within the 30-day deadline (or who withhold funds in bad faith) may owe the tenant damages equal to the amount wrongfully withheld plus reasonable attorney fees. Courts may also award additional damages if they find evidence of bad-faith withholding.
Security Deposit Disputes
If a tenant disagrees with how a landlord handles their security deposit, they have every right to raise a dispute. To do so, they should contact the landlord directly, ask for clarification (in writing), review the itemized deductions, and outline their concerns. If the issue persists, the tenant may seek mediation or file a court claim.
As a landlord, prepare for potential disputes by using move-in and move-out checklist forms, staying on top of accounting and bookkeeping, and including clear terms within all of your lease agreements. Thorough documentation, solid knowledge of Ohio laws, and careful attention to required timelines will also help you navigate disputes more effectively.
Using Condition Reports to Document Damage
Security deposits in Ohio become much easier to manage when landlords use detailed move-in and move-out condition reports. These digital tools help landlords record a unit’s condition, track changes over time, and justify deductions with a higher degree of certainty.
Landlords can protect themselves further by using property management software to create digital reports, complete with photos and videos, directly from their smartphone. By documenting the property’s condition before move-in and after move-out, security deposit deductions become far more transparent and far less negotiable.
Sign up for a free TurboTenant account to streamline your condition reports and make security deposit deductions the right way.
FAQs: Ohio Security Deposit Law
Can a landlord deduct painting from a security deposit in Ohio?
A landlord may deduct painting costs only when a tenant leaves damage that goes beyond normal wear and tear. Routine repainting between tenants counts as standard maintenance, so landlords cannot charge tenants for ordinary touch-ups or expected aging.
Are nail holes considered normal wear and tear in Ohio?
Small nail holes from hanging pictures typically count as normal wear and tear. Larger holes, excessive marks, or damage that requires more extensive repair may justify a deduction because the tenant caused more than ordinary wear and tear.
Who has to pay for carpet cleaning in Ohio, the landlord or the tenant?
A landlord may charge a tenant for carpet cleaning only when the tenant leaves stains, odors, or heavy soil beyond normal wear and tear. Routine cleaning between tenants remains a landlord’s responsibility and cannot be deducted from the security deposit.
What happens if a landlord doesn’t return a security deposit within 30 days in Ohio?
If a landlord fails to return the deposit within 30 days after receiving the tenant’s forwarding address, they may owe the tenant damages equal to the amount wrongfully withheld, along with reasonable attorney fees. Courts may award additional damages if they uncover proof of bad-faith withholding.
