Ohio Security Deposit Interest Rules

Does Ohio require interest on security deposits?

Yes, but only on part of the deposit. Under Ohio Rev. Code § 5321.16(A), any security deposit in excess of $50 or one month's periodic rent, whichever is greater, bears interest on that excess at 5 percent per year, as long as the tenant remains in possession for six months or more. The rate is fixed by statute, which is unusual: most states with deposit interest rules use a market or bank rate.

How Ohio deposit interest is calculated

First find the excess: subtract the greater of $50 or one month's rent from the deposit. Interest is 5 percent per year on that excess only. For a $1,500 deposit on a unit renting for $1,200 a month, the excess is $1,500 minus $1,200, or $300, so a year of interest is $300 × 5% = $15. If the deposit is equal to or less than one month's rent (and at least $50), there is no excess and no interest is owed. If the tenant leaves before six months, no interest is owed.

When interest must be paid

Section 5321.16(A) says the interest is computed and paid annually by the landlord to the tenant. Many Ohio landlords handle the annual payment as a credit toward the next month's rent; if you do that, record it so the credit is traceable.

What happens if an Ohio landlord doesn't comply

Under § 5321.16(B), the landlord has 30 days after the rental agreement ends and possession is delivered to return the deposit balance with an itemized written notice of any deductions. If the landlord fails to comply, § 5321.16(C) lets the tenant recover the money due, plus damages equal to the amount wrongfully withheld, plus reasonable attorney fees.

How to use this calculator

The calculator shows the Ohio rule for your deposit. Because Ohio interest applies only to the amount above the greater of $50 or one month's rent, work out that excess first, then apply 5 percent per year for each year the tenant has been in possession.

Frequently asked questions about Ohio deposit interest

Does Ohio require landlords to pay interest on security deposits?

Yes, on the portion of the deposit above the greater of $50 or one month's rent, when the tenant stays six months or more. The rate is 5 percent per year under Ohio Rev. Code § 5321.16(A).

What is the Ohio deposit interest rate?

5 percent per year, fixed by statute. It applies only to the excess over the greater of $50 or one month's periodic rent, not to the whole deposit.

When must Ohio deposit interest be paid?

Annually. Section 5321.16(A) says the interest is computed and paid annually by the landlord to the tenant.

Do small Ohio deposits require interest?

Only if the deposit is larger than both $50 and one month's rent. A deposit equal to or less than one month's rent has no excess, so no interest is owed on it.

What happens if an Ohio landlord doesn't comply?

If the landlord does not return the balance with an itemized notice within 30 days, the tenant can recover the money due, plus damages equal to the amount wrongfully withheld, plus reasonable attorney fees under § 5321.16(C).