Security Deposit

[sher]

I was reading in past messages that it is suggested to get first and last months rent along with a security deposit equal to one months rent. I was told that when doing that you have to add interest to the deposit when returning it because you collected more than a months rent. Is this the case?

Also, does anyone have a recommendation for a collections company?

[eewillison]

Ohio Revised Code Section R.C. 5321.01(E) states that a "Security deposit" means any deposit of money or property to secure performance by the tenant under a rental agreement. Since the taking of the last month's rent early is done to secure the tenant's performance (i.e. paying the last month's rent) then it is a security deposit. I would pay interest on that portion when you return the deposit.