Do I have to pay interest on a commercial tenant’s security deposit if the tenant waived interest in the lease agreement?
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Do I have to pay interest on a commercial tenant’s security deposit if the tenant waived interest in the lease agreement?
Lease amount was originally $750, with $750 required for security deposit. Rent was reduced to $600 over 4 years at tenant’s request for financial reasons. while $750 deposit is still in account.
Asked on May 13, 2012 under Real Estate Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
It appears that under Ohio law, whenever a security deposit exceeds one month's rent, interest must be paid on that portion of the deposit in excess of a month's rent--in this case, on $150. Since this is required by law, I do not believe the tenant may lawfully waive the interest; that is, despite the lease provision, I believe you need to pay interest. Here is a link to a relevant portion of your state law: http://codes.ohio.gov/orc/5321.16
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