Security deposit interest in Ohio
Yes — Ohio landlords must pay interest on security deposits after 6 months.
Work out what you are owed in Ohio
Enter your deposit and dates to see what Ohio law entitles you to.
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Not legal advice. This is an estimate for informational purposes only and is not legal advice. Security deposit laws change and vary by jurisdiction. Verify with the cited statute or consult a licensed attorney in your state before taking action.
How is the Ohio interest rate set?
Five percent a year, set directly by statute, but paid only on the part of the deposit above 50 dollars or one month's rent, whichever is greater. It is not paid on the whole deposit, and because most Ohio deposits equal one month's rent there is usually no excess and so no interest. Interest is computed and paid annually. One question is open: Sec. 5321.16 does not say whether interest accrues during months 1 to 6 and becomes payable once the tenant has been in possession six months, or whether it does not begin until month seven. Both readings fit the text, and the difference is six months of 5 percent on the excess. Because of that, this site does not give an Ohio figure.
What does Ohio law actually say?
Ohio requires 5 percent annual interest on a residential security deposit, but only on the amount exceeding 50 dollars or one month's periodic rent, whichever is greater, and only if the tenant remains in possession for six months or more. Interest is computed and paid annually by the landlord to the tenant. In practice most Ohio deposits are set at exactly one month's rent, leaving no excess and no interest payable, so tenants should check whether their deposit exceeded that threshold.
On termination the landlord may apply the deposit to past due rent and to damages from the tenant's noncompliance, and must deliver an itemised written notice of any deductions together with the amount due within 30 days of termination and delivery of possession. The tenant must give the landlord a written forwarding address; failing to do so forfeits the tenant's right to damages and attorney fees.
When must an Ohio landlord return the deposit?
30 days after the tenancy ends.
What if your landlord does not comply?
If the landlord fails to itemise deductions and return the amount due within 30 days, the tenant may recover the property and money owed, plus damages equal to the amount wrongfully withheld, plus reasonable attorney fees. The tenant loses the right to these damages and fees if they did not provide a written forwarding address.