Ohio require interest on security deposits?

[Mary K.]

I need to return part of a security deposit on a tenant who lived in a rental in central Ohio for 3 years. The deposit was equal to one month's rent. Am I required to give him 3 years worth of interest on the security deposit? I am hearing conflicting answers. Also can you deduct cleaning expenses (dirty bathrooms, showers, appliances, not wear and tear)?

[Adam Feick]

@Mary K.

First consult a legal professional, as this is only my opinion.  If you run a search on BP I remember seeing past threads about this subject.  

The Ohio Revised Code you are asking about is 5321.16 Procedures for security deposits.  You can Google it to read the entire thing, however you are asking about Section A. It reads:

"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."

I read it as if the security deposit is greater than one months rent, then you owe 5% interest on the amount greater than one months rent.  So if rent were $100/mo and the security deposit was $110.  Then you owe the tenant 5% on the $10.  

Hope this helps.  Please consult a legal professional.