Deposit limits, return deadlines, allowable deductions, and penalties under Ohio law. Updated April 2026.
Ohio does not impose a statutory maximum on the amount a landlord may collect as a security deposit. Under ORC § 5321.16, landlords may charge any amount. Market practice in Ohio typically places deposits at one to two months' rent, though some landlords charge more based on risk factors. In metro areas like Columbus and Cincinnati, one month's rent is the most common deposit amount.
While there is no cap on the deposit amount, the interest requirement under ORC § 5321.16(A) creates a practical consideration. Deposits exceeding $50 or one month's rent (whichever is greater) must earn 5% annual interest if the tenant remains for six months or more. This means larger deposits generate a larger interest obligation for the landlord.
Prepaid rent is treated separately from the security deposit. Landlords should clearly distinguish between the deposit, prepaid rent, and non-refundable fees in the lease agreement. Non-refundable fees should be explicitly labeled as such, as any payment called a "deposit" is presumed refundable under Ohio law.
Ohio does not require landlords to hold security deposits in separate escrow accounts or trust accounts. Landlords may commingle deposits with other funds. However, the interest requirement creates an implicit obligation to track deposit amounts and durations carefully for each tenant.
Under ORC § 5321.16(A), any security deposit in excess of $50 or one month's periodic rent, whichever is greater, must bear interest at the rate of 5% per annum if the tenant remains in possession for six months or more. The interest is computed and paid annually to the tenant. This means landlords must track when each tenant's six-month threshold is reached and begin computing interest from that point.
The interest obligation applies only to the excess amount above $50 or one month's rent. For example, if the monthly rent is $1,000 and the deposit is $1,500, interest is owed on the $500 excess. If the deposit equals exactly one month's rent, no interest is owed. Landlords should calculate the interest correctly and either pay it directly to the tenant or credit it against rent at least once per year.
Under ORC § 5321.16(B), the landlord must return the security deposit with any accrued interest within 30 days after the termination of the rental agreement and delivery of possession by the tenant. If the landlord withholds any portion, a written itemized list of deductions must be provided within the 30-day period, along with the balance of the deposit and any accrued interest.
The 30-day clock begins when both conditions are met: the lease has terminated and the tenant has surrendered physical possession. If the tenant abandons the property, the landlord should document the date of abandonment. The refund, itemized statement, and any accrued interest should be sent to the tenant's forwarding address. If no forwarding address is provided, the landlord should send to the last known address.
Landlords should use certified mail or another method that provides proof of mailing to document timely compliance. Failure to return the deposit and provide the itemized statement within 30 days exposes the landlord to significant penalties. If there is a legitimate dispute over the amount of deductions, the landlord should still send the itemized statement and partial refund within 30 days to preserve the right to withhold.
Under ORC § 5321.16(B), landlords may deduct from the security deposit for unpaid rent and for damage to the premises caused by the tenant that exceeds normal wear and tear. The deductions must be itemized in a written statement provided to the tenant within 30 days. Each item must be described with sufficient detail for the tenant to understand the charge.
Common allowable deductions include unpaid rent, repairs for holes in walls, broken fixtures, stained or burned carpet, damaged appliances, broken windows, excessive cleaning costs, and removal of tenant-abandoned property. Normal wear and tear—minor wall scuffs, faded paint, worn carpet in traffic areas, and routine maintenance items—cannot be deducted. Ohio courts closely scrutinize deductions and expect landlords to distinguish clearly between damage and normal wear.
To support deductions, landlords should conduct documented move-in and move-out inspections with photographs and written condition reports. Obtaining actual repair invoices or written contractor estimates is recommended. The itemized statement should include the description of each item, the cost, and any supporting documentation. Overcharging or including unsupported deductions can result in the court ordering the return of the full deposit plus damages.
Under ORC § 5321.16(C), if a landlord fails to comply with the 30-day return requirement or wrongfully withholds any portion of the deposit, the tenant may recover the deposit amount wrongfully withheld, plus damages in an amount equal to the amount wrongfully withheld, plus reasonable attorney fees. This effectively creates a double-damage penalty for wrongful withholding.
The penalty applies when the landlord either fails to return the deposit within 30 days, fails to provide the required itemized statement, or withholds amounts without proper justification. Even if the landlord has legitimate damage claims, failing to follow the procedural requirements (timely itemized statement) can trigger the penalty.
Additionally, failure to pay the required 5% interest on qualifying deposits is a separate violation that can result in additional liability. Landlords should ensure they are tracking interest obligations and including accrued interest in the final deposit return. Ohio courts have ordered the return of deposits plus damages plus attorney fees in cases where landlords failed to comply with the interest requirement, even when the underlying deposit deductions were legitimate.
For Section 8 tenants in Ohio, the security deposit is the tenant's responsibility—the PHA does not pay it. Since Ohio has no statutory cap, landlords may charge any amount. However, the deposit must comply with the interest requirements under ORC § 5321.16(A) if it exceeds $50 or one month's rent and the tenant remains for six months or more.
All return and itemization requirements apply equally to Section 8 tenancies. The deposit, accrued interest, and any itemized deduction statement must be sent to the tenant within 30 days of move-out. Landlords should apply the same deduction standards to voucher and non-voucher tenants to avoid fair housing issues.
Ohio landlords in the Section 8 program should note that the PHA's HQS inspection at the start of tenancy provides documentation of the unit's condition that can be useful in deposit disputes. Damage beyond normal wear and tear is the tenant's responsibility, not the PHA's. The same double-damage penalty under ORC § 5321.16(C) applies to Section 8 tenancies, so careful compliance with return timelines and interest obligations is essential.
Yes, if the deposit exceeds $50 or one month's rent (whichever is greater) and the tenant stays for at least six months. Interest accrues at 5% per year on the excess amount and must be paid to the tenant annually (ORC § 5321.16(A)).
Under ORC § 5321.16(B), the landlord must return the deposit with an itemized statement of deductions within 30 days after the tenancy ends and the tenant delivers possession of the premises.
The tenant may recover the amount wrongfully withheld, plus an equal amount in damages (effectively double damages), plus reasonable attorney fees under ORC § 5321.16(C). This applies to late returns, missing itemized statements, and unjustified deductions.
No. Ohio has no statutory cap on security deposit amounts. However, deposits above $50 or one month's rent trigger a 5% annual interest obligation if the tenant remains for six months or more, which creates a practical consideration for larger deposits.
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