Is he due a refund?

[applecruncher]

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

A 60 yr old uncle on disability moved into an apt 3 yrs ago and was asked for a 2 month security deposit (his rent is $515 so upon move- in he paid first month’s rent plus a $1,030 sec dep.) and signed a 2 yr lease. At the time they said the extra sec dep was because of his not-so-great credit rating (which he has improved). Now he is M2M.

The bldg has 4 apt units and is in a decent, quiet area, but he’s had to keep after the property management re: maintenance issues. He told me the other day that the first yr he was there he put his rent into escrow with the court because they were ignoring his calls and letters - for months. There was an arbitration meeting and most of the issues were remedied. He’s going to stay until/unless he finds something better for the same rent rate.

Meanwhile, he did some research and found out that they should have paid him 5% interest per year on the excess deposit amount. They haven’t, so he has sent them a written request and cited the section of the Ohio Revised Code. Hey, $75 isn’t something to just shrug off.

He said he’s never paid rent late and never received any complaints. There are 2 vacant units in the bldg now, and he found out they are posting ads and only charging a security deposit of $200. However, my main question (and his) is this: Is he entitled to a refund – i.e. $1.030 minus $200, which would be $830? We can’t find anything about this. Thanks in advance.

ETA: FWIW his son told him since he no longer has a lease he shouldn't make waves. I say they don't want to lose yet another tenant - the 2 empty apst are not generating any revenue - and there's nothing wrong with a polite written request, but he needs a law/code citation to back him up.

 

[Antigone*]

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

A 60 yr old uncle on disability moved into an apt 3 yrs ago and was asked for a 2 month security deposit (his rent is $515 so upon move- in he paid first month’s rent plus a $1,030 sec dep.) and signed a 2 yr lease. At the time they said the extra sec dep was because of his not-so-great credit rating (which he has improved). Now he is M2M.

The bldg has 4 apt units and is in a decent, quiet area, but he’s had to keep after the property management re: maintenance issues. He told me the other day that the first yr he was there he put his rent into escrow with the court because they were ignoring his calls and letters - for months. There was an arbitration meeting and most of the issues were remedied. He’s going to stay until/unless he finds something better for the same rent rate.

Meanwhile, he did some research and found out that they should have paid him 5% interest per year on the excess deposit amount. They haven’t, so he has sent them a written request and cited the section of the Ohio Revised Code. Hey, $75 isn’t something to just shrug off.

He said he’s never paid rent late and never received any complaints. There are 2 vacant units in the bldg now, and he found out they are posting ads and only charging a security deposit of $200. However, my main question (and his) is this: Is he entitled to a refund – i.e. $1.030 minus $200, which would be $830? We can’t find anything about this. Thanks in advance.

The amount of his security deposit was based on his risk. Unless there is a law that states all security deposits need to be the same, then I don't see why he should think this is due to him. Now he can certainly ask that his security deposit be reduced, but since he has had issues, he shouldn't bank on it.

I can understand why the landlord is advertising as they are since they have half of their property empty.

 

[applecruncher]

Yes, he was a risk (credit wise) back then but he’s not now, the lease has expired, and he’s been a good paying tenant. What’s the risk now? Also, if he decides to move (and does the proper cleaning) they are going to have to refund his entire $1,030 anyway. The issues were lease violations on THEIR part, not his. Correct me if I'm wrong, but do you mean since he went so far as to put his rent in escrow a couple yrs ago they might still be pissed about it?

I recall that back in the 70s when I rented my first apt (an efficiency) owned by a large property mgmt co, the rent was $100 and the sec dep was $100. A year or so later the manager gave me a $50 check, explaining the sec dep had been reduced to $50. I would not have known about it.

Not looking for a law that says all sec deps have to be the same (althouhg if there is one I'd be interested in seeing it). There IS a law about LL having to pay interest on the excess sec dep and he's entitled to that, at least.

 

[Banned_Princess]

Yes, he was a risk (credit wise) back then but he’s not now, the lease has expired, and he’s been a good paying tenant. What’s the risk now? Also, if he decides to move (and does the proper cleaning) they are going to have to refund his entire $1,030 anyway. The issues were lease violations on THEIR part, not his. Correct me if I'm wrong, but do you mean since he went so far as to put his rent in escrow a couple yrs ago they might still be pissed about it?

I recall that back in the 70s when I rented my first apt (an efficiency) owned by a large property mgmt co, the rent was $100 and the sec dep was $100. A year or so later the manager gave me a $50 check, explaining the sec dep had been reduced to $50. I would not have known about it.

Not looking for a law that says all sec deps have to be the same (althouhg if there is one I'd be interested in seeing it). There IS a law about LL having to pay interest on the excess sec dep and he's entitled to that, at least.

The LL doesn't pay the interest, the bank does on the deposited security deposit, and dear uncle gets it .. when he moves out.

all of the security deposit he paid, stays in an account till he moves out.

Thats it. Forget about the money, or have your uncle move out in order to have it returned.

 

[applecruncher]

The LL doesn't pay the interest, the bank does on the deposited security deposit, and dear uncle gets it .. when he moves out.

all of the security deposit he paid, stays in an account till he moves out.

Thats it. Forget about the money, or have your uncle move out in order to have it returned.

Beg your pardon, but that is incorrect: (re: interest in excess sec dep)

Ohio Revised Code 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.

As I said, we already did some research and found that out.

As far as the rest of the sec dep, sure he can ask for it to be reduced, but unless
there is a law or
they want to be nice and/or
they don’t want to lose another tenant,

I understand – he might be out of luck. However, according to law as long as he stays there they (the LL, not the bank) have to pay annual interest in the excess.