Security Deposit Law
What Ohio landlords must do with security deposits — the cap, interest, return deadline, account rules, and penalties — with citations to the statute itself.
Verified as of June 10, 2026
This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.
Deposit cap
No statutory limit on the deposit amount.
Interest
5% per year — but only on the portion above $50 or one month's rent, and only if the tenant stays six months or more.
Return deadline
30 days after the rental agreement terminates and the tenant delivers possession.
Ohio Revised Code § 5321.16 sets no maximum security deposit. But any amount above $50 or one month's rent (whichever is greater) starts accruing 5% annual interest owed to the tenant once the tenancy reaches six months, which is why most Ohio landlords keep deposits at one month's rent.
Under § 5321.16(A), a deposit in excess of $50 or one month's periodic rent (whichever is greater) bears interest on the excess at 5% per annum if the tenant remains in possession six months or more. The landlord must compute and pay that interest to the tenant annually — not as a lump sum at move-out.
Any deduction must be itemized and identified in a written notice delivered to the tenant together with the amount due, within 30 days after termination and delivery of possession. The tenant must provide a forwarding or new address in writing; a tenant who fails to do so cannot recover the statutory damages or attorney fees (but the landlord still owes the deposit balance).
Ohio's security deposit statute imposes no escrow, trust account, or surety bond requirement. Nothing in § 5321.16 prohibits commingling deposits with operating funds — the statute's only mechanics are the interest rule, the 30-day itemized return, and the doubling penalty.
If a landlord fails to comply with the 30-day itemized-return rule, § 5321.16(C) lets the tenant recover the money due plus damages in an amount equal to the amount wrongfully withheld, plus reasonable attorney fees. The damages and fees remedy is conditioned on the tenant having provided a forwarding address in writing.
No widely applicable city-level security-deposit ordinances identified; ORC Chapter 5321 governs statewide. Check individual city codes for ancillary rental-registration requirements, which exist in some Ohio cities but don't change deposit mechanics.
Deductions must be 'itemized and identified' in a written notice delivered with the remaining balance within 30 days of termination and delivery of possession. A late or non-itemized return is what triggers the doubling penalty.
Once a tenant has been in possession six months, the portion of the deposit above $50 or one month's rent bears 5% annual interest, computed and paid to the tenant annually. Keeping the deposit at or below one month's rent avoids the obligation entirely.
The deposit may be applied to past-due rent and to damages the landlord suffered from the tenant's noncompliance with the rental agreement or the tenant duties in § 5321.05 (keep the unit safe and sanitary, no intentional or negligent damage, etc.). Ordinary wear and tear is not tenant noncompliance, so it is not a lawful deduction.
A tenant who never gives a written forwarding address cannot collect the doubled damages or attorney fees. The underlying obligation to account for and return the deposit balance still exists, so send the itemized statement to the best address you have.
The tenant can sue for the amount due plus an equal amount in damages plus reasonable attorney fees under § 5321.16(C) — a clean-cut doubling for a paperwork failure.
After six months of tenancy, annual interest on the excess is owed to the tenant by statute; unpaid interest is money 'due' the tenant and adds to wrongful-withholding exposure at move-out.
Wear and tear from normal use is not a breach of the tenant duties in § 5321.05, so the deduction is wrongful — exposing the landlord to double damages and attorney fees on that amount.
The statute requires deductions to be 'itemized and identified'; an unexplained lump sum invites a court to treat the whole deduction as wrongfully withheld and double it.
No — Ohio sets no cap. But anything above one month's rent (or $50, whichever is greater) accrues 5% annual interest payable to the tenant once they've been in possession six months, so most landlords charge exactly one month's rent.
30 days after the rental agreement ends and the tenant delivers possession. Within that window you must deliver the remaining balance plus a written notice itemizing and identifying every deduction.
No. Ohio lets you apply the deposit only to unpaid rent and damages caused by the tenant's noncompliance with the lease or the tenant duties in ORC 5321.05. Faded paint and worn carpet from normal use don't qualify.
The tenant can recover the amount wrongfully withheld, an equal amount again as damages, and reasonable attorney fees — provided they gave you a written forwarding address.
Only if the deposit exceeds $50 or one month's rent (whichever is greater) and the tenant stays at least six months. Then the excess earns 5% per year, which you must compute and pay to the tenant annually.
A tenant who didn't provide a written forwarding address can't recover the doubled damages or attorney fees. You still owe the deposit balance and itemization, so mail it to the last address you have and document the attempt.
This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.
Statute facts on this page were verified against the cited official sources on June 10, 2026.
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