Are you planning on moving soon? If so, this could be considered one of your life’s most exciting and stressful times. Finding new schools, jobs, new grocery stores, and much more can all play a big role in the stress of moving. That is why we want to take a minute to cover a few things that may help you alleviate some of that stress when preparing to move. Today’s discussion will cover how security deposits work in Ohio for those planning to move.

Security Deposit Amounts

Typically, the amount due for a security deposit depends on not only your credit/history but also the property’s rent. This amount is held in a bank account that is usually separate from the business bank account of the landlord, and the “standard” amount of the deposit is one or two months of the rent amount. So it wouldn’t be unheard of to see a ‘first month, last month’ scenario, which means you are essentially paying the first month’s rent and the previous month’s rent upfront. This protects the landlord against unforeseen situations that would see rent not being paid.

In some cases, landlords will only charge 1 month’s rent or even less as a security deposit. This is all determined by the property owner/landlord and is part of the contractual lease you sign upon renting a property.

When Can the Landlord Keep the Security Deposit?

Considering that the security deposit is used almost like insurance for a landlord, its main purpose is to protect the landlord against anything that may need to be fixed or made up for when you leave the property. For example, your landlord may fix a broken disposal that has worn out over time. This amount would NOT come from your security deposit. However, if you or someone in your household were to put something down the same disposal that caused it to no longer work, then amounts of your security deposit may be used to fix the issue. Your security deposit may also be used for late fees or unpaid rent.

How Long Does My Landlord Have to Return the Security Deposit?

The amount of time a landlord has to return your security deposit can vary by the state where you live. However, most of the time, it is 30 days after you vacate the property. For the exact amount of time, we recommend thoroughly reading over your lease agreement, as you should be able to locate the answer there.

If you have been a model tenant as defined by your rental lease, you can rest assured that you stand a very good chance of getting your entire security deposit returned. Remember that the security deposit protects a landlord against people who cannot keep the terms of their lease.

Does My Security Deposit Earn Interest?

As we discussed, the security deposit you put on your rental property will generally be put into an account separate from the landlord’s business account. This ensures the money remains available when it is time to return the appropriate funds. In many cases, these bank accounts will provide the ability to gain interest on the funds deposited into the account. Who is entitled to the interest? That depends on the state in which you live. In Ohio, the renter is entitled to the security deposit’s interest, which the tenant pays annually.

What Happens if My Landlord Won’t Return My Rightful Security Deposit?

Did you provide your landlord with a proper forwarding address in writing? Has it been longer than 30 days for your security deposit to be returned? Don’t worry, you have rights. This only benefits you (depending on your state). In Ohio, if the landlord has not returned the security deposit minus any withholdings and an explanation of withholdings within the 30-day window, the tenant is entitled to their security deposit back plus damages in the wrongfully withheld amount and attorney’s fees.

Dealing with rental agreements and security deposits can sometimes be extremely stressful. We at Buckeye Northwest Realty understand the challenges of this. We pride ourselves on working directly with our tenants to ensure the best relationship. Contact us today for more information on rental agreements or to find houses for rent in Toledo, Ohio!