Overview
Ohio security deposit laws are governed by Ohio Revised Code § 5321.16. Ohio has no cap on deposit amounts but does require interest on larger deposits held for extended periods. The law provides clear rules on return timelines and itemization requirements. Using security deposit management software helps track interest obligations and deadlines.
Maximum Security Deposit
Ohio has no statutory limit on security deposit amounts. Landlords may request any amount they deem appropriate—whether one month's rent, two months' rent, or more.
In practice, most Ohio landlords charge one to two months' rent as a security deposit. Market conditions and competition typically keep deposits reasonable.
Return Timeline
Under ORC § 5321.16, landlords must return the security deposit within 30 days after:
- Termination of the rental agreement, AND
- Delivery of possession by the tenant
Forwarding Address Requirement
Important: The tenant must provide a written forwarding address. If the tenant fails to provide this address, they cannot recover damages or attorney's fees for late return.
Itemization Required
Any deductions must be itemized and identified in a written notice delivered with the remaining balance. (Michigan has similar provisions—see Michigan security deposit laws.)
Interest Requirements
Interest is required on larger deposits held for longer periods:
When Interest Applies
Deposits that exceed $50 or one month's rent (whichever is greater) must bear interest on the excess amount if the tenant remains in possession for 6 months or more.
Interest Rate & Payment
- Rate: 5% per annum
- Computed and paid annually
- Only the excess over $50/one month's rent earns interest
Storage Requirements
No requirement to hold deposits in a separate or interest-bearing account (unless interest threshold is met). No requirement to notify tenants of where the deposit is held.
Allowable Deductions
Under ORC § 5321.16, landlords may deduct for:
- Past due rent
- Damages caused by tenant's failure to comply with their obligations under ORC § 5321.05 or the rental agreement
Normal wear and tear cannot be charged to the tenant.
Penalties for Non-Compliance
Failure to comply with Ohio's security deposit laws may result in:
- Liability for the amount wrongfully withheld
- Damages equal to the amount withheld (essentially double damages)
- Reasonable attorney's fees
Note: Tenants must have provided a forwarding address to be eligible for these remedies.
Common Compliance Questions
What counts as "normal wear and tear"?
Normal wear and tear includes minor scuffs on walls, slightly worn carpet in high-traffic areas, small nail holes from hanging pictures, and faded paint from sunlight. It does not include large holes in walls, stained or burned carpet, broken fixtures, or damage from pets. When in doubt, document the condition at move-in with dated photos.
How should I document the unit's condition?
Complete a detailed move-in checklist with the tenant, noting existing damage, appliance conditions, and overall cleanliness. Take timestamped photos or video of every room. At move-out, repeat the process. This documentation protects both parties and makes deduction decisions defensible if disputed. See how Passive works to automate documentation and compliance.
Can I deduct for unpaid utility bills?
Only if your lease specifically allows it and the utilities are in your name. If utilities are in the tenant's name, contact the utility company directly—they have their own collection processes. Never make unauthorized deductions, even for amounts you believe the tenant owes.