| 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.
As discussed in this article, many Ohio cities and counties have regulations which are more restrictive than those presented here. Always check local laws.
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, a landlord cannot collect a security deposit without giving the tenant these three ways to pay for it:
- 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
While these cover the larger metropolitan areas in Ohio, other cities may also have collection and receipt requirements for a security deposit.
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 in excess of $50 or one month’s rent (whichever is greater). 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 one and one-half months’ rent as a security deposit, the landlord owes $25 in interest at the end of the year: rent up to one month ($1000, here) isn’t counted, and the rest earns interest at 5% (5% of the remaining $500 = $25).
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.
Sources
- 1 Columbus Code of Ord. § 4551.04(a) - (c)
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(a) Renter’s Choice. If an operator requires that a tenant pay a security deposit, no operator shall fail to provide written notice of the security deposit payment alternatives as described in this division. Prior to entering into a rental agreement, a tenant required to pay a security deposit shall either pay the required security deposit in full or select and subsequently fulfill one of the following rental security deposit payment alternatives:
(1) payment of the security deposit over a series of no fewer than 3 monthly installment payments, which installments shall be due on the same day as the monthly rent payment and which may be paid together with the monthly rent payment in a single transaction,
(2) payment of the security deposit over a series of no fewer than 6 monthly installment payments, which installments shall be due on the same day as the monthly rent payment and which may be paid together with the monthly rent payment in a single transaction,
(b) This section shall not apply to any operator with fewer than 5 rental units.
(c) The provisions of this section shall apply to any residential lease that is executed or renewed after the effective date of this ordinance.
Source Link - 2 Cleveland Code of Ord. § 375.04
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Upon a tenant’s written request, the landlord shall provide the tenant with a signed receipt for the security deposit and all rental payments except for payments made by personal check of the tenant, at the time the security deposit or rental payments are made. The tenant may make this request for a receipt, relative to the security deposit and/or all rental payments, in one (1) written request. A tenant may bring an action for mandatory or injunctive relief to secure compliance with this section.
Source Link - 3 Cincinnati Code of Ord. § 871-9(7) - (9)
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(7) When a tenant provides a security deposit the landlord shall provide the tenant with a signed receipt for the security deposit and all rental payments, except for payments made by personal check of the tenant, at the time the security deposit or rental payments are made.
(8) Upon a tenant’s request, all landlords who own and control more than twenty-five rental units and require a security deposit shall offer to accept at least one of the options described in paragraph 871-9(a)(8)(A-C) in lieu of the required security deposit:
(A) Rental security insurance that satisfies the following criteria:
(i) The insurance provider is an approved carrier licensed by, and in good standing with, the Ohio Department of Insurance;
(ii) The coverage is effective upon the payment of the first premium and remains effective for the entire lease term; and
(iii) The coverage provided per claim is no less than the amount the landlord requires for security deposits.
(B) Payment of the security deposit over a series of no less than six equal monthly installment payments, which installments shall be due on the same day as the monthly rent payment and which may be paid together with the monthly rent payment in a single transaction, absent separate agreement by the landlord and tenant; or
(C) Payment of a reduced security deposit, which amount shall be no more than fifty percent of the monthly rental rate charged for the subject rental unit.
(D) Prior to entering into a rental agreement, a landlord shall provide the tenant written notice of the available security deposit alternatives consistent with paragraph 871-11, “Notice to Tenants.”
(E) If rental security insurance meeting the criteria in this paragraph 871-9(a)(8) is not available within the corporate limits of city of Cincinnati, a landlord shall satisfy his or her obligations under this paragraph 871-9(a)(8) by offering, at his or her option, one of the rental security deposit alternatives described in paragraph 871-9(a)(8)(B-C).
(F) The provisions of this paragraph 871-9(a)(8) shall not apply to a deposit placed with a landlord to secure the availability of a rental unit more than sixty days prior to the commencement of the rental period.
(9) A tenant who elects to provide rental security insurance in lieu of a required security deposit shall not be required to provide additional security or insurance coverage per claim in an amount greater than the amount required for security deposits.
Source Link - 4 Columbus Code of Ord. § 4551.05
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(a) Except as otherwise provided in division (b), no operator shall fail to cause a tenant to be provided with a written receipt for any security deposit and for all rental payments at the time the deposit or payment is received. In the event of payment by cash or by any other means that does not provide an automatically generated written receipt, the receipt shall be provided within 4 business days of the security deposit or rental payment being received.
(b) The provisions of this section shall not apply to any operator of permanent supportive housing properties.
(c) Where an operator provides for payment of either a security deposit or rent through a third-party online portal or service, the ability of the tenant to obtain a written receipt through the portal or service accepting the payment shall constitute evidence of the provision of a receipt by the operator.
Source Link - 5 Dayton Code of Ord. § 93.70(b)
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When a tenant provides a security deposit, the landlord shall provide the tenant with a signed receipt for the security deposit and all rental payments if made by cash or by money order, at the time the security deposit or rental payments are made.
Source Link - 6 Ohio Rev. Code § 5321.16(a)
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Any security deposit in excess of fifty dollars or one month’s periodic rent, whichever is greater, shall bear interest on the excess at the rate of five per cent per annum if the tenant remains in possession of the premises for six months or more, and shall be computed and paid annually by the landlord to the tenant.
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