It's estimated that there are nearly 3.6 million evictions each year. Part of what makes evictions so devastating is that they have the potential to ruin the financial life of not only the tenant but also the landlords. Missed income from rent is the only liability that landlords face. Property damage from problem tenants is another big one.
What's the solution to these problems? One safety net that you need to be using are security deposits in Columbus, OH. Unfortunately, there are a lot of laws you need to be familiar with when setting up and collecting your deposits, otherwise, you could face legal trouble.
So what do you need to know about security deposits in Columbus? In this guide, we'll answer that question so you can get the extra protection you need.
Is There a Maximum Limit On Security Deposits in Ohio?
No, there's no specific limit on how much you can charge for your security deposit in Ohio. That being said, it's generally recommended to charge around one month's rent for the deposit. However, it's important to remember that in Columbus there are some laws on how tenants can pay for security deposits in their rental agreements.
Section 4551.04, also known as renter's choice, states that renters are to be given a choice on how they can pay their deposit. In addition to paying it in full, they also have the option to pay it in three or six monthly payments.
Laws Surrounding the Return of the Security Deposit
Once the lease is up, you must return the security deposit to the tenant. You have thirty days after the termination of the lease to accomplish this, otherwise you'll violate tenant rights. What do you do if you need to keep the security deposit to cover damages?
In this case, you will need to make an itemized list of all the charges and provide your tenant with a written notice, as well as a copy of your deposit refund policies.
Accrued Interest
As a landlord, you just put your tenant's deposit in a separate account that's interest-bearing.
This account must accrue 5% interest per annum. At the end of the lease, you must pay the tenant the accumulated interest. This interest can be a great way to retain tenants.
How to Make Security Deposits Easier
As you can see, there's a lot of work that goes into collecting, storing, and returning security deposits in Columbus. One solution to this problem is to choose a full-service property management company.
Not only will these professionals handle every aspect of security deposit collection, but they can manage your property for you. That way, you can sit back and enjoy the passive income.
Need Landlords Help? Contact PMI Columbus
We hope this guide helped you learn more about security deposits in Columbus, OH. Here at PMI Columbus, we know how complicated landlord laws surrounding security deposits can be. That's because you need to juggle local, state, and even federal laws to make sure you're compliant.
Luckily, with our decades of experience, we make sure you get your security deposit without any problems. What's more, we can manage every aspect of your property to make your job as a landlord easier. So get in touch with us today to get the help you need.
