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Does Security Deposit HAVE to be put in an escrow account and if so...

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Gracie67

Junior Member
What is the name of your state (only U.S. law)? Ohio

Does the security deposit HAVE to be put into an escrow account? If the Landlord can not produce records that it was put in an escrow account and I learn this when I move out or if he takes me to court and I have an attorney demand that proof, can I sue the Landlord for 3X what the security deposit was even if he gives me back my money within 30 days after I broke my lease or keeps the money because the lease was broken and I ended up owing him? I couldn't afford the place after my 1 year lease was up, but have to admit that I was going to try for another year. The Landlord and I then had a verbal agreement to continue the lease for another year at a reduced monthly amount, but then I just couldn't keep it up more than 2 months and wanted to use my security deposit for the last month (this month) before I move out and he won't let me. So, I told him that he had to keep the security deposit in escrow and that he could just use that and he won't. He doesn't admit to not having it in an escrow account, but I am pretty sure he didn't/doesn't. So, I told him that if he didn't keep it in an escrow account that I could sue him for 3X what that amount was which was nearly $900, the same amount as 1/12 of the first year. I actually paid half of the first year up front and the other half 6 months later because I did not have a job and was receiving money from my ex-husband to cover the expenses. Well, that money is no longer and that made me unable to pay the rent which is about $120 less than 1/12 of the rent for that first lease year. Sorry to be so confusing. I came from Maryland, so the rules are probably similar, right? I think that that is how it was done in Maryland.

Thanks!
 


ecmst12

Senior Member
Either way, you can't use your deposit for your last month's rent. The deposit is meant to cover any damages to the apartment. If you use it for rent, then there is no money to pay for any damage you may have caused to the apartment. The landlord is not going to take your word that there is no damage, that's why you have to pay the deposit in the first place. If you don't pay the rent, expect to be evicted.
 

justalayman

Senior Member
where did you find anything suggesting 3X damages?



5321.16 Procedures for security deposits.
(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.

(B) Upon termination of the rental agreement any property or money held by the landlord as a security deposit may be applied to the payment of past due rent and to the payment of the amount of damages that the landlord has suffered by reason of the tenant’s noncompliance with section 5321.05 of the Revised Code or the rental agreement. Any deduction from the security deposit shall be itemized and identified by the landlord in a written notice delivered to the tenant together with the amount due, within thirty days after termination of the rental agreement and delivery of possession. The tenant shall provide the landlord in writing with a forwarding address or new address to which the written notice and amount due from the landlord may be sent. If the tenant fails to provide the landlord with the forwarding or new address as required, the tenant shall not be entitled to damages or attorneys fees under division© of this section.

(C) If the landlord fails to comply with division (B) of this section, the tenant may recover the property and money due him, together with damages in an amount equal to the amount wrongfully withheld, and reasonable attorneys fees.

Effective Date: 11-04-1974
the only thing you would be owed would be the interest on the deposit.


The Landlord and I then had a verbal agreement to continue the lease for another year at a reduced monthly amount, but then I just couldn't keep it up more than 2 months and wanted to use my security deposit for the last month (this month) before I move out and he won't let me
so, you have a 1 year verbal lease. What makes you think you will get anything back? Your last month is still 10 months away. You owe the 9 months in between if he cannot find a replacement tenant.

I came from Maryland, so the rules are probably similar, right? I think that that is how it was done in Maryland.
the rules in Ohio are the laws of Ohio. They might be similar to Marylands laws but it really make any difference because the laws of Maryland don't apply here.
 

Searchertwin

Senior Member
What is the name of your state (only U.S. law)? Ohio

Does the security deposit HAVE to be put into an escrow account? I couldn't afford the place after my 1 year lease was up, The Landlord and I then had a verbal agreement to continue the lease for another year at a reduced monthly amount, but then I just couldn't keep it up more than 2 months and wanted to use my security deposit for the last month (this month) before I move out and he won't let me.
I was hoping I could find that Maryland did not require that LL had to put deposit in escrow. But it does.:mad:

Why would you want to do this to the LL? He was going to help you out with a lower rent for another year.
It's not his fault that you lost your job, your ex stop giving you money, so why put a financial burden on him?
If he was willing to give you a discount, he might just work with you on letting you out of the lease. Did you bother to just ask him?

My advice to you. Take LL to court and sue. LL will also sue for probably the same amount for damages in the place plus rent that is due from the past, present and future.
Than when you go to rent in the future, your case will be public record and that new LL will see this and will throw that application down the trash. :D
In the end, LL wins.
 

Who's Liable?

Senior Member
I was hoping I could find that Maryland did not require that LL had to put deposit in escrow. But it does.:mad:

Why would you want to do this to the LL?
Do what? Expect the LL to follow their state LL/T laws?

Just as a LL expects a tenant to follow their lease and be on time with payments, tenants expect LL to follow state LL/T laws.

If they cannot, they shouldn't be LLs.
 

Gail in Georgia

Senior Member
" He doesn't admit to not having it in an escrow account, but I am pretty sure he didn't/doesn't. So, I told him that if he didn't keep it in an escrow account that I could sue him for 3X what that amount was which was nearly $900, the same amount as 1/12 of the first year."

OP has no actual knowledge that the landlord does not have the security deposit in an escrow account but is pissed because he does not agree to allowing her to use the security deposit as last months rent and is hoping to blackmail him into letting her do so with the threat of a lawsuit based on security deposit laws that pertain to Maryland, not Ohio (although the rental property is in Ohio).

Gail
 

OHRoadwarrior

Senior Member
After we have all determined the moral character of OP, it appears she has no standing to threaten the poor landlord who took pity on her. Now he can slam her on her damages!!!

5321.16 Procedures for security deposits.

(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.

(B) Upon termination of the rental agreement any property or money held by the landlord as a security deposit may be applied to the payment of past due rent and to the payment of the amount of damages that the landlord has suffered by reason of the tenant’s noncompliance with section 5321.05 of the Revised Code or the rental agreement. Any deduction from the security deposit shall be itemized and identified by the landlord in a written notice delivered to the tenant together with the amount due, within thirty days after termination of the rental agreement and delivery of possession. The tenant shall provide the landlord in writing with a forwarding address or new address to which the written notice and amount due from the landlord may be sent. If the tenant fails to provide the landlord with the forwarding or new address as required, the tenant shall not be entitled to damages or attorneys fees under division© of this section.

(C) If the landlord fails to comply with division (B) of this section, the tenant may recover the property and money due him, together with damages in an amount equal to the amount wrongfully withheld, and reasonable attorneys fees.
 

BL

Senior Member
really? got something to support that?

op stated they have a 1 year lease.
Accually if you read the post the one year lease was up ,and the landlord verbally agreed to another one year lease at reduced rate.

Generally speaking ,without an auto renewal clause, a one year lease or longer has to be written .

Note: I do not know that State's Law .

The poster however doesn't have a leg to stand on if he hasn't/doesn't pay this months rent.
 

justalayman

Senior Member
Accually if you read the post the one year lease was up ,and the landlord verbally agreed to another one year lease at reduced rate.

Generally speaking ,without an auto renewal clause, a one year lease or longer has to be written .

Note: I do not know that State's Law .

The poster however doesn't have a leg to stand on if he hasn't/doesn't pay this months rent.
yes, agreed to a new 1 year lease. An auto renewal clause is irrelevant.




. The Landlord and I then had a verbal agreement to continue the lease for another year at a reduced monthly amount, but then I just couldn't keep it up more than 2 months and wanted to use my security deposit for the last month (this month) before I move out and he won't let me.
yes, that makes it a 1 year verbal lease.

unless the law requires a lease of 1 year to be written, it doesn't have to be. Leases for more than a year must be written due to the statutes of frauds requirement that any contract not able to be performed within a year must be in writing.

I found nothing in Ohio law requiring a lease of 1 year to be in writing.
 

latigo

Senior Member
A verbal lease is always month to month. . . .
Would you care to offer some authority in support of that bit of unschooled rambling?

And I suppose since verbal is always month-to-month that sleeping rooms can no longer be occupied by the week or day?
_____________

And with regarding to the following:

. . . . It has to be written to be for a year.
What about six months or 364 days? Such “has to be written” as well?

[SUP]Coming upon your your posting is often like dinning at a Chinese restaurant. One can never anticipated what new profundity will be found in the cookie.[/SUP]
 

Searchertwin

Senior Member
Do what? Expect the LL to follow their state LL/T laws?
Just as a LL expects a tenant to follow their lease and be on time with payments, tenants expect LL to follow state LL/T laws.
If they cannot, they shouldn't be LLs.
I did not state that. But if you want everyone to think I don’t want tenant to follow laws, that’s fine. But ones with common sense knows what the reply went to that follows the op post.

Op stated: “ So, I told him that if he didn't keep it in an escrow account that I could sue him for 3X what that amount was which was nearly $900, the same amount as 1/12 of the first year’

I replied, “Why would you want to do this to the LL? He was going to help you out with a lower rent for another year”

Take Care
 

BL

Senior Member
I did not state that. But if you want everyone to think I don’t want tenant to follow laws, that’s fine. But ones with common sense knows what the reply went to that follows the op post.

Op stated: “ So, I told him that if he didn't keep it in an escrow account that I could sue him for 3X what that amount was which was nearly $900, the same amount as 1/12 of the first year’

I replied, “Why would you want to do this to the LL? He was going to help you out with a lower rent for another year”

Take Care
Why not add the rest of your tone that you posted .

Originally Posted by Searchertwin
I was hoping I could find that Maryland did not require that LL had to put deposit in escrow. But it does.

Why would you want to do this to the LL?[/B]
Nough said on the way you think and respond , although I give you credit for the reply to the disabled couple post .
 

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