Congratulations! You have just won the tenant lottery!
L is completely, 100% wrong. Read Ohio Revised Code, Title 53, chapter 5321. Your library has it or you can read it here:
http://onlinedocs.andersonpublishing.com/revisedcode/home3.cfm?GRDescription2=title%2053&GRDescription3=%20&TextField=%3CJD%3A%225321%22%3ECHAPTER%205321%3A%20LANDLORDS%20AND%20TEN ANTS&GRStructure1=5321&GRStructure2=%20
5321.16 says that L owes you interest at 5% if you were there more than 6 months, & has to refund your deposit or send an accounting if damages within 30 days of you leaving. Since L wrongfully withheld your entire deposit, you should sue L for twice the deposit amount + interest, + attorney fees. Since L will be paying your attorney fees, go hire one & sue L next week.
Sue L under 5321.16. First, you argue that the no refund term was never part of the rental agreement.
Second, argue that the term is prohibited under 5321. There is no state law saying you have to stay for 2 years to get your deposit back, nor can L have that kind of condition in an oral lease. In fact, 5321.06 states that L cannot have any terms in a rental agreement that are "inconsistent with or prohibited by" chapter 5321. Since 5321.16 says L has to pay you interest with your refund if you're there more than 6 months, a term that L doesn't have to refund your deposit at all is inconsistent with 5321.
Finally, argue that the term, *even if it existed*, is unconscionable under 5321.14 & therefore unenforceable.
Go forth & take L to the cleaners!
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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.
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