Security deposit disputes are among the most common issues between landlords and tenants and Ohio law places strict requirements on how deposits must be handled, deducted, and returned. Failing to follow these rules can expose landlords to liability for damages and attorney fees. 

At Lardiere McNair & Stonebrook Ltd., LPA, we work with landlords to develop practical solutions while minimizing legal exposure and protecting their investments.

What Is a Security Deposit?

A security deposit is money collected from a tenant to secure performance under the lease agreement.  Ohio law does not impose a statewide cap on the amount a landlord may charge as a security deposit for most residential properties.

Ohio’s 30-Day Rule

Under Ohio Revised Code Section 5321.16, landlords must return the tenant’s security deposit within 30 days after:

• The tenant moves out; and 
• The tenant delivers possession of the premises. 

If deductions are made, the landlord must provide:

• An itemized written list of deductions; and 
• Any remaining balance of the deposit. 

The statement should be clear, detailed, and supported by documentation whenever possible.

The Importance of the Tenant’s Forwarding Address

• Ohio law requires tenants to provide a forwarding address in writing.
• If the tenant fails to provide one, the landlord may have difficulty returning the deposit, and the tenant may lose the ability to recover statutory damages and attorney fees.
• Nevertheless, landlords should maintain records showing attempts to comply with the law.

What Landlords Can Deduct

• Unpaid Rent and/or utilities
• Damage beyond ordinary wear and tear;
• Pet damage;
• Excessive filth requiring extraordinary cleaning.

What Landlords Cannot Deduct

• Minor carpet wear; 
• Small nail holes; 
• Faded paint; 
• Minor scuffs on walls; and 
• Loose hardware from regular use. 

Penalties

If a landlord fails to comply with Ohio Revised Code Section 5321.16, the tenant may recover:

• The amount wrongfully withheld; 
• An extra amount of money equal to the amount wrongfully withheld; and 
• Reasonable attorney fees. 

Whether you are a landlord attempting to comply with Ohio security deposit laws or facing a dispute with a former tenant, Lardiere McNair & Stonebrook Ltd., LPA’s experienced legal guidance can help protect your rights and avoid costly litigation. Call 614) 534-1355 and schedule a free consultation. 

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