Ohio Security Deposit Collections & Holdings

Ohio Security Deposit Collections & Holdings

Last Updated: January 5, 2023 by Ashley Porter

Quick Facts Answer
Maximum / Limit No Limit
Receipt Requirement None
Inventory Requirement None
Interest Requirement Only for leases longer than 6 months

To learn about laws on security deposit returns in Ohio, click here.

Maximum Security Deposit Allowed in Ohio

There is no limit on how much a landlord can collect for a security deposit in Ohio. While other states impose a maximum security deposit limit, such as one month’s rent, Ohio does not.

Can Landlords Charge an Additional Pet Deposit in Ohio?

In Ohio, landlords can charge an additional pet deposit, except for service dogs and emotional support animals.

How Much Rent Can a Landlord Collect Upfront in Ohio?

There is no limit on the amount of rent that can be collected upfront in Ohio. Many states have a limit on the amount of rent that can be collected at once, but Ohio does not.

Security Deposit Collections in Ohio

While other states have additional requirements for landlords that collect a security deposit, such as providing certain documentation of the condition of the unit at move-in, Ohio does not.

However, cities may enact laws that add requirements for landlords when collecting security deposits.

For example, in Columbus, when a landlord collects a security deposit, they must give the tenant (in writing) these three payment options:

  • In full at the start of the lease term
  • Three equal monthly installments due at the same time as rent
  • Six equal monthly installments due at the same time as rent

Do Landlords Have to Provide a Receipt for the Security Deposit in Ohio?

Ohio state law does not require landlords to provide a receipt for the security deposit. However, some city laws require receipts, like Cleveland, Cincinnati, Columbus, and Dayton.

Landlords in these cities are required to provide receipts in some situations:

  • Cleveland – When requested by the tenant in writing, except personal checks
  • Cincinnati – Except when the tenant pays by personal check
  • Columbus – Always (must be provided within 4 business days)
  • Dayton – When the deposit is paid by cash or money order

Check your local laws to determine if receipts for security deposits are required.

What Obligations Do Landlords Have to Establish the Condition at Move-in in Ohio?

Ohio law does not have specific obligations before a tenancy. While other states like Washington have pre-tenancy obligations like a written inventory of damages, Ohio does not.

Landlords are always required to ensure their property is habitable and compliant with state and local housing codes.

Security Deposit Holdings in Ohio

Ohio law does not require landlords to hold security deposits separate from other funds. Although in some situations the landlord owes interest, they are free to choose how and where security deposits are held.

Are Tenants Entitled to Interest on Their Security Deposit in Ohio?

Ohio law does require landlords to provide interest at a rate of 5% per year  on held security deposits, but only on the amount of the security deposit collected above $50 or one month’s rent, whichever is higher. The tenant must occupy the residence for six months or longer. Interest accrues from the beginning of the lease term.

For example, if the rent on a one-year lease is $1,000 per month and the landlord collects a $1,500 security deposit, the landlord owes $25 in interest at the end of the year (5% of $500).

How Are Security Deposits Accounted for in Ohio?

Security deposits are not considered taxable income when they are collected.

What Happens to a Security Deposit When the Property is Sold in Ohio?

There is no state statute for the treatment of security deposits after the sale of a property. However, the security deposit belongs to the tenant and must be returned to them at the end of the lease term if no deductions can be made.