Ohio security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
{{ state }} security deposit account
There is no legal requirement to keep a tenant’s security deposit in Ohio in a dedicated escrow or trust account. But it’s recommended to keep funds in a separate security deposit bank account in Ohio to maintain clear records.
{{ state }} security deposit
limits
There is no limit on the maximum security deposit in Ohio. But, based on the average security deposit, it’s best not to charge more than 1 to 2 months’ rent upfront.
{{ state }} security deposit interest
Yes, interest on security deposit in Ohio is required if the deposit is more than $50 or one month’s rent, whichever is higher, and the tenant stays in the unit for at least six months. State law security deposit rules require you to pay security deposit interest rate of 5% annually to the tenant.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
No official guidelines. 1 to 2 months’ rent is often recommended
Not required to keep funds in a security deposit escrow account in Ohio. But it’s recommended to keep these funds separate from personal funds.
Unpaid rent, cleaning, property damages, and lease violations
30 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in Ohio?
There is currently no official Ohio security deposit limit. You can charge whatever you like, but most landlords stick to first and last month's rent plus a one-month deposit.
Is interest required on tenant security deposits in Ohio?
Yes, paying Ohio security deposit interest is required if the deposit is more than $50 or one month’s rent, whichever is higher, and the tenant stays in the unit for at least six months. You must pay 5% interest annually. While you’re not legally required to use a dedicated landlord-tenant security deposit bank account in Ohio, it is best practice to keep these funds in a separate account to make interest tracking easier.
How should I issue a security deposit receipt to tenants in Ohio?
While Ohio law doesn't mandate a specific form, you should always give a written receipt. Include the date, the amount, the property address, and a note that it is for a security deposit.
How many days to return a security deposit in Ohio?
You have 30 days to return the tenant's security deposit in Ohio after the tenant moves out and provides a forwarding address. You can either return the full amount of the deposit or mail an itemized list of deductions and the remainder deposit amount, if any, within the same period.
What can a landlord deduct from a security deposit Ohio?
As per landlord rights, the security deposit can be used to cover unpaid rent, late fees, and any unpaid utility bills left behind. You can also deduct for damage to your house rental, apartments, or condo beyond "normal wear and tear," such as holes in walls or broken appliances, and for excessive cleaning costs or trash removal. Make sure to write these deductions in a list and send them over to tenants within 30 days, or you could be held liable for double damages.
Can a security deposit be used for unpaid rent in Ohio?
Yes. If a tenant leaves owing money (rent or utility charges), you can pull from the security deposit escrow account in Ohio to cover that balance. Just make sure you include this in your itemized list of deductions sent to the tenant.
Can landlords keep a security deposit for breaking a lease in Ohio?
When a tenant breaks the lease, you can keep the deposit to cover your actual financial losses, such as unpaid rent until a new tenant is found or the costs of re-renting the unit. However, you can't just keep it as a "penalty"—it must be tied to actual costs or lost rent.
