Security Deposit Alternative in Ohio
Ohio sets no dollar limit on a security deposit, but it charges you for holding a big one. Any deposit above fifty dollars or one month's rent, whichever is greater, earns the resident 5 percent a year on the excess once they pass six months in the unit, and you pay that out annually. You then have 30 days from the end of the tenancy and getting possession back to deliver an itemized written notice of every deduction along with the balance owed.
What Ohio law says about security deposits
- Can you require it?
- Review the security definition
- Ohio defines a deposit by its security function. The cited deposit rules do not authorize a recurring waiver fee.
- Statutory cap
- No stated cap in §5321.16; excess above $50 or one month’s rent, whichever is greater, can earn interest
- Return deadline
- 30 days after the tenancy ends and you have possession back
- The law
- Ohio's security deposit law
- Ohio Revised Code 5321.01(E) and 5321.16
Source baseline: . See the official Ohio source. Deposit rules change, and this is general information rather than legal advice. Confirm the current text with your own counsel before you change a lease.
Can you require it of every Ohio resident?
Ohio §5321.01(E) defines a security deposit as money or property deposited to secure the resident’s performance. Section 5321.16 does not supply a dedicated waiver-fee framework. Its interest rule applies to the excess over $50 or one month’s periodic rent, whichever is greater, at 5 percent annually when possession lasts at least six months. A fee’s name or optional status does not settle whether it falls within the security definition; review the actual arrangement.
Rules differ by state and by city, and subsidized housing is its own question. This is general information for property managers, not legal advice. Get a written opinion before you make the fee a condition of tenancy anywhere.
How the program works in Ohio
Review Beagle's deposit alternative alongside the agreement for your property. Protection, resident responsibilities and claim handling depend on the program terms and applicable state and local requirements.
Explain the options at signing
A qualifying fee arrangement lets a resident pay a monthly charge instead of providing the full cash deposit. Explain the available deposit choice, refundability and continuing resident obligations at signing. The payment’s legal treatment depends on the arrangement and jurisdiction.
Match protection to the lease
Compare the selected program’s covered losses, limit, exclusions and claim requirements with the deposit your lease would require. Payment depends on an eligible claim and the program terms; a fee does not itself guarantee the same recovery as cash security.
Document move-out and give notice
A deposit alternative changes how an eligible claim is paid. Keep move-in and move-out evidence, provide the notices required for the property's jurisdiction, and follow the program's claim process. Claim review and resident disputes can still require your team's involvement.
Agree the program economics
Confirm the resident’s charge and any property administration payment in your quote and agreement. Include permitted fees in the disclosures required for the property; earnings depend on the agreed economics and applicable law.
Security deposit rules in other states
- AlabamaReview the payment’s security function
- AlaskaReview nonrefundability and notice rules
- ArizonaReview security and fee rules
- CaliforniaReview the broad security definition
- ColoradoReview security function and fee pricing
- ConnecticutCheck upfront fees and total-rent disclosure
- DelawareOptional surety has its own rules
- FloridaOptional only
- GeorgiaReview cap scope and return duties
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- HawaiiCheck the fee rules first
- IdahoReview security purpose and custody
- IllinoisReview return rules and fee disclosures
- IndianaReview returnable security and the address
- IowaReview deposit custody and instructions
- KansasReview deposit caps and refund triggers
- KentuckyConfirm local adoption and required records
- LouisianaReview security function and statement timing
- MaineOptional licensed surety has separate notice
- MarylandOptional only
- MassachusettsConfirm authorizing rules
- MichiganReview the deposit procedure
- MinnesotaReview fee classification and disclosure
- MississippiReview the payment’s security function
- MissouriReview the security definition
- MontanaCleaning and damage fees presumed security
- NebraskaReview function and housing-agency scope
- NevadaOptional only
- New HampshireCheck the fee rules first
- New JerseyReview trust, interest and special refunds
- New MexicoReview reasonable security and mailing
- New YorkReview fee restrictions
- North CarolinaReview the bond structure
- North DakotaReview security cap and 30-day accounting
- OklahomaReview escrow and the demand trigger
- OregonCheck the fee rules first
- PennsylvaniaReview escrow and fee classification
- Rhode IslandReview security function and furniture limit
- South CarolinaReview deposit standards and agreement
- South DakotaReview security function and both notices
- TexasOptional only
- UtahReview nonrefundable designation and notice
- VermontReview refundable definition and local law
- VirginiaOptional only
- WashingtonOptional only
- West VirginiaReview refundable security and contractor notice
- WisconsinReview security and deduction rules
- WyomingReview disclosures and separate clocks
Ohio security deposit alternative FAQs
Section 5321.16 requires annual payment of 5 percent interest on the excess above $50 or one month’s periodic rent, whichever is greater, after at least six months’ possession. Whether an alternative avoids that rule depends on its legal classification; recovery also depends on the agreement, evidence and applicable law.
See it on your Ohio units
Run the selected program against your own unit count, or review its charges, onboarding and agreement terms with our team.