Chapter 5321 Landlords and Tenants govern Ohio month-to-month lease agreements. § 5321.16 states that security deposits greater than $50 or one month’s rent, whichever is more, must be kept in an account that returns at least 5% interest each year if the tenant lives in the rental unit for at least six months. The landlord must pay that interest to the tenant each year.
When the lease termination occurs, the security deposit may be used by the landlord for non-payment of monthly rent, to repair damage to the rental property that exceeds normal wear and tear, or certain non-compliance matters. The landlord must provide an itemized statement of deductions to the tenant within 30 days as long as they have the tenant’s forwarding address.
Landlords and property managers entering into month-to-month tenancy agreements should understand the state laws. Otherwise, they should seek legal advice. An Ohio residential lease agreement creates legally binding relationships between the parties and creates both rights and obligations involving both federal law and state law.
According to § 5321.17, the notice period for a lease termination agreement is 30 days. It must be a written notice given before the beginning of the month before the lease renews. However, if there is a substantial violation, the landlord may give a three days' notice to the renter.