I have never heard of this law. My lease states that I will hold the security deposit in a non-interest bearing account. Which is where they sit.
@Jered Sturm if rent is $750 & you collect a $750 deposit you do not need to pay interest.
For pets its best to take a non refundable "pet fee" & then charge pet rent.
Is this ORC? or OAC?
Just wanted to follow-up on this, and was curious if there was a definitive answer? It would appear that the landlord is required to pay 5% simple interest for anything over $50.
I read somewhere else that interest is paid at the prevailing rate.
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."
interest shall be paid on an amount in excess of..
2. Or 1 months rent
Whichever is greater. So it looks like only have to pay interest on amounts over 1 months rent.
This is helpful.
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