Security deposits in Ohio are regulated by Ohio Revised Code § 5321.01 to § 5321.16. Certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

KEY POINTS AT A GLANCE: Ohio

Deposit Cap: No

Holding Requirements: No

Interest Required: Varies – Dependent on Security Deposit Amount and Lease Length 

Return Window: 30 days

COLLECTION & HOLDING REQUIREMENTS

Deposit Cap: Ohio state law does not currently limit the amount that landlords/property managers can require as a security deposit.

Holding Requirements: Ohio state law does not currently require security deposits to be held in a bank account within the state, in a separate account, or in an interest-bearing account.

Information Provided to Tenant: Ohio state law does not currently require landlords/property managers to disclose where the security deposit is held.

‍Interest on Deposits: Ohio state law requires that landlords/property managers pay interest to tenants only on security deposits of more than $50 or one month’s rent, whichever is greater, at a rate of 5% per annum, only if the tenant remains in possession of the premises for six months or more. Interest must be computed and paid to the tenant annually.

RETURN

Timeline: Within 30 days of vacancy, the landlord/property manager must either (1) return the full security deposit to the tenant or (2) provide the tenant with an itemized written notice of any deductions to the security deposit, together with the portion of the security deposit being returned. The tenant must provide the landlord/property manager with a forwarding address to which the security deposit and notice of deductions, if any, can be sent. 

Documentation of Deductions: Ohio state law does not require any specific documentation or level of detail to be included in the itemized notice of deductions to the security deposit.

Permissible Deductions: Landlords/property managers may deduct the following from security deposit funds:

• Unpaid rent
• Damages beyond normal wear and tear
• Damages caused by the tenant’s noncompliance with the lease or Ohio Revised Code § 5321.05

‍Penalties: Failure to return the security deposit or provide the itemized notice of deductions as required may result in the landlord/property manager being liable for the security deposit and any interest that is wrongfully withheld, damages equal to the amount wrongfully withheld, and attorney’s fees and court costs if the tenant wins in a lawsuit. However, if the tenant does not provide the landlord/property manager with a forwarding address, the tenant is not entitled to recover damages, attorney's fees, or court costs.