Ohio security deposit rules (ORC 5321.16)

Last checked: October 15, 2026

Ohio's security deposit rules are in one short statute, Ohio Revised Code 5321.16. It covers interest on large deposits, what you can deduct, the 30-day deadline for the itemized list, and what a tenant can win if a landlord gets it wrong.

What counts as a security deposit

ORC 5321.01(E) defines a security deposit as a deposit of money or property that secures the tenant's performance under a rental agreement. The same section defines "landlord" to include the owner, lessor or sublessor of residential premises, their agents, and anyone authorized to manage the premises or receive rent. So a property manager holding the deposit is covered the same way an owner is.

The rules at a glance

Interest on larger deposits

Most small-landlord deposits are around one month's rent, which means little or no interest is owed. The interest rule only bites on the excess. Here is an illustration, using made-up round numbers, of how the statute's formula works:

• Monthly rent is $1,000 and the deposit is $1,200.
• The greater of $50 or one month's rent is $1,000.
• The excess is $200, and five percent of $200 is $10 per year.

If the tenant stays six months or more, the landlord computes and pays that interest each year. The statute ties the interest to the tenant remaining in possession for six months or more. If you take a deposit above one month's rent, track the interest from day one so you are not doing the math at move-out.

Deductions and the 30-day itemized notice

When the rental agreement ends, a landlord may apply the deposit to unpaid rent and to damages caused by the tenant's failure to meet the statute's duties or the lease. Each deduction must appear in a written, itemized notice that also states the amount due to the tenant. The notice must be delivered within thirty days after the rental agreement ends and possession is delivered.

In practice that means:

1. Record the date possession is delivered (keys returned, unit empty).
2. Document the condition with dated photos and, if you have one, a move-in checklist.
3. Write each deduction on its own line with an amount and a reason.
4. Send the itemized list and any remaining balance within the thirty days, and keep proof of mailing or delivery.

The statute itself does not prescribe photos or checklists. They are practical ways to support an itemized list if a tenant disputes it.

The tenant's forwarding address

The landlord can only get the notice to the tenant if the landlord knows where to send it. The statute therefore puts a duty on the tenant: give the landlord a written forwarding or new address. A tenant who does not give one cannot recover damages or attorney fees under division (C). Ask for the forwarding address in writing at move-out, and put that request in your lease or move-out instructions.

What happens if a landlord does not follow the rules

Division (C) lets the tenant recover the property and money due, plus damages equal to the amount wrongfully withheld, plus reasonable attorney fees. In round numbers, if a landlord wrongfully withholds $800, the tenant may recover the $800 and an additional $800 in damages, plus fees. Attorney fees are what usually turn a small-claims dispute into a risk for a landlord, so a clean itemization is cheap insurance.

What this guide does not cover

I did not find, and so do not state, any statutory cap on deposit size, any rule about wear and tear, or any rule about where a landlord must hold the money. If a question turns on those, check the full statute and Chapter 5321 of the Ohio Revised Code or ask an Ohio attorney. If the tenant is being evicted, the deposit rules still apply after possession is delivered: see the eviction process and the 3-day notice guide.