Security deposit interest owed?!

[Shane R Smith]

Calling all Ohio landlords @ben, or someone that read legal jargon better!

I have a tenant that's claiming the we owe interest on the security deposit. It's referenced in the Ohio code.

5321.16 Procedures for security deposits.

(A) Any security deposit in excess of fifty dollars or one month's periodic rent, whichever is greater, shall bear interest on the excess at the rate of five per cent per annum if the tenant remains in possession of the premises for six months or more, and shall be computed and paid annually by the landlord to the tenant.

My interpretation of the code is that if you hold more than the one months rent in deposit you owe the 5% per annum.

She believes that it's anything over $50 she's entitled to interest.

I understand that the advice received is not necessarily legal advice. I'm just getting an idea if this is worth putting effort into or not.

@Ben Leybovich I'm in your area of Ohio. Have you ever had experience with this? 

Thanks, 

[Nathan Gesner]

@Shane R Smith you can read the law here: Ohio Deposits

Can I give you a word of advice? If your tenant is educating you on the law, you are failing as a Landlord. This is a sign you are in over your head and facing future problems.

I highly recommend you learn the local, state, and federal statutes and how they affect you. If you fail in something as simple as paying interest, it can cost you a lot of money in court and a lot of time and headaches. And that's just a 5% interest requirement! Just imagine the trouble you can get yourself in if you violate Fair Housing, zoning laws, or a myriad of other areas.

Consider buying "Every Landlord's Legal Guide" by NOLO. It has practical advice on how to manage a home, shows you what your state laws are regarding major items like deposits, and it points you to the law so you can read it for yourself. You can educate yourself now or learn the hard way later.