Ohio Security Deposit Question

[Corey Vadasz]

How would you interpret this paragraph from the Ohio Revised Code Chapter 5321 Landlords and Tenants on security deposits?

Does this mean I have to find somewhere to put security deposit money that would earn a guaranteed 5% and pay that Capitol gain to my tenants every year? That's way more than any savings account available (to my knowledge). Every local landlord looks at me crazy when I bring this up.

Thanks in advance for any input!

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.

[Jen R.]

You only have to pay interest if you collect a greater security deposit than one month’s rent, and then only on the balance that is greater. Just set your deposit equal to the monthly rent and you don’t have to worry about it.