Just as a blueprint guides the construction of a building, a lease agreement serves as the foundation for a successful landlord-tenant relationship. This crucial document clearly defines the terms, rights, and responsibilities of both parties, ensuring clarity and minimizing potential disputes.

In Ohio, landlords must follow specific regulations when creating a lease agreement, including mandatory clauses and required disclosures. 

This article explores the essential components of lease agreements in Ohio, providing landlords with the knowledge needed to stay compliant with state laws. To make the process even easier, we’ve included free, Ohio-specific rental agreement templates to help you get started seamlessly.

Essential Lease Clauses

According to Ohio laws, there are some key clauses landlords must include in the lease agreement for it to be legally binding and valid.

Below are the key elements that every lease should incorporate:

• Basic Information About the Parties: The initial section of your rental agreement should identify all parties involved: the landlord (or property owner) and the tenant(s). This part must include the full names and contact information of everyone involved to eliminate any confusion regarding responsibilities outlined in the lease.
• Property Description: Clearly describe the rental property being leased, including the complete address and any specific unit numbers if applicable. Additionally, mention any extra spaces or amenities included in the lease, such as parking spots, storage units, or shared facilities.
• Lease Term and Renewal: Specify how long the tenant may occupy the property; this could be a fixed lease (e.g., 6 or 12 months) or a month-to-month agreement. Include details about rent due dates and how the lease can be extended or renewed.
• Rent Payment Terms: This section outlines the rent amount, due dates, and acceptable payment methods (such as online rent transfers or checks). It’s important to specify any grace periods and consequences for late payments, including potential late fees. 
• Security Deposit and Other Fees: Clearly state the deposit amount, where it will be held, and under what conditions it may be withheld. Be sure to list any additional fees, such as pet fees or parking charges, to avoid surprises for tenants.
• Maintenance and Repairs: Specify who is responsible for maintaining the property; typically, major repairs fall under the landlord's purview while tenants handle minor fixes or routine upkeep. The lease should also outline how repair requests should be submitted and detail procedures for emergency repairs.
• Use of the Property: Clearly state the rules regarding how the rental unit can be used. For example, specify whether it is intended solely for residential purposes. This section can also address subletting policies, pet permissions, and any necessary amendments for changes in living arrangements. If there are restrictions on smoking or operating home-based businesses, include those clauses as well.
• Legal Requirements and Disclosures: Compliance with local laws and landlord-tenant regulations is essential. Every lease agreement must adhere to legal standards relevant to the property's location. This section should also include any required disclosures—such as risks related to lead paint or mold—that may be mandated by law.
• Utilities and Other Expenses: This section should clearly delineate who is responsible for paying utilities like electricity, gas, and water. If there are additional expenses, such as landscaping services or homeowner association fees, specify who will cover these costs.
• Inspection and Entry Clauses: Landlords or property managers may need access to the property for inspections or repairs. The lease must include a clause outlining when landlords can enter the rental unit and how much notice they must provide—typically 24 to 48 hours unless there is an emergency.

• Termination and Eviction Terms: It’s essential to clarify under what conditions the lease can be terminated. For instance, if a tenant fails to pay rent or violates lease terms, this may warrant eviction by the landlord. Similarly, if a tenant wishes to leave early, procedures for early termination and potential penalties should be explicitly stated.
• Signature Section: Finally, every rental contract should feature a clear signature section where both landlord and tenant can formally agree to the terms outlined in the document. The agreement becomes legally binding once both parties have signed it. 

Required Disclosures in an Ohio Lease Agreement

Like every other state, Ohio mandates landlords to provide some essential disclosures to tenants at the beginning of a lease agreement. This includes providing the landlord's name and address, as well as disclosing any known lead-based paint hazards in properties built before 1978. 

It’s important for landlords to note that failure to adhere to the disclosure requirement can result in legal consequences. 

Fixed-Term vs. Month-to-Month Leases

Landlords in Ohio usually use two main types of rental lease agreements: month-to-month leases and fixed-term leases. Each of these agreements has distinct features and legal obligations that are important for landlords to understand before creating one.

To assist you in choosing the right option for your rental situation, we've provided a comparison table below. This will help clarify which lease type may suit your needs best.

Security Deposit Rules in Ohio

Landlords in Ohio are required to clearly state the terms regarding security deposits in their lease agreements. It is crucial for landlords to understand that the handling of these security deposits—both their collection and return—is strictly governed by Ohio law.

Here’s a detailed overview of the key security deposit regulations that should be incorporated into any lease agreements in Ohio:

• Maximum Amount: Ohio law does not impose a cap on the amount a landlord can charge for a security deposit. Instead, the amount is negotiated and specified within the lease agreement between the landlord and tenant. Generally, security deposits range from one to two months' rent.
• Collecting Security Deposits: Landlords are permitted to collect security deposits at the beginning of the lease. However, they must provide tenants with clear disclosures about the security deposit within the lease to ensure transparency.
• Allowable Deductions from Security Deposits: At the conclusion of the lease, landlords may deduct unpaid rent from the deposit along with any actual damages incurred due to the tenant's breach of the lease or legal obligations. It is important to note that landlords cannot deduct unpaid rent without tenant consent.
• Return Timeline: In Ohio, landlords have 30 days from the end of the lease or the tenant's move-out date to return the security deposit. If any portion of the deposit has been used, landlords must provide written notice and an itemized list of all deductions to the tenant.
• Holding Deposits: According to Ohio landlord-tenant law, landlords are required to keep tenants' deposits in a separate, interest-bearing account. The interest accrued on security deposits must be at least 5 percent per annum, and landlords are obligated to pay this interest to tenants annually.

Rent Collection Rules in Ohio

Here’s a concise overview of the key rules that should be included in rental agreements in Ohio.

• Late Payments: Ohio does not impose statutory limits on late rent fees; however, any late charges must be specified in the rental agreement. Courts in Ohio stipulate that these fees cannot be deemed "unconscionable," meaning they must not be excessively unfair.
• Grace Period: Ohio law does not mandate a grace period for rent payments. As a result, landlords have the right to impose late fees starting the day after rent is due.
• Rent Withholding: Tenants who believe their landlord is failing to meet legal obligations can only legally withhold rent through a process known as Rent Escrow. This involves tenants depositing their rent payments with the court instead of paying the landlord directly. The procedures for this process are outlined in ORC 5321.07-10. 
• NSF Fees for Bounced Checks: In Ohio, fees for bounced checks, often referred to as insufficient funds (NSF) fees, are limited to $30 or 10% of the check's face value, whichever amount is greater.

Tired of having to deal with late rent as a landlord? Try using Landlord Studio’s online rent collection tool. This platform allows tenants to automate their payments, and you’ll save time on bookkeeping with seamless, automated income tracking. 

You’re always in control—set rent amounts and due dates, prevent partial payments, and easily manage late fees.

Lease Termination and Renewal

In Ohio, the procedures for lease termination or lease renewal depend on the type of lease agreement in place.

Month-to-Month Leases

For month-to-month leases, either the landlord or tenant must give at least 30 days' written notice before the intended termination date. This requirement ensures that both parties have adequate time to make necessary arrangements.

Week-to-Week Leases

In the case of week-to-week leases, a shorter notice period of at least 7 days is necessary. This brief timeframe reflects the inherent flexibility of weekly agreements.

Lease Renewals

Regarding lease renewals, if neither party issues a termination notice, a fixed-term lease may automatically transition to a month-to-month lease, depending on the original terms. Landlords are encouraged to communicate their intentions regarding renewal well in advance, as typically outlined in the rental agreement.

Related: What is a Holdover Tenant? Definition & Holdover Tenant Legal Rights

Ohio Lease Agreement Laws: Conclusion

The most important takeaway from this article is that landlords should ensure they follow Ohio lease agreement laws to ensure their leases are valid and enforceable. 

We can’t stress enough how important it is for them to comply with both federal and state laws that apply to rental agreement Ohio when creating one. This will ensure proper protection for them when a rental relationship goes south. 

To streamline your experience, we’ve provided free lease agreement templates for you to download below. These templates are designed to comply with state regulations while fostering a positive rental experience for both landlords and tenants.

Download your free Ohio lease agreement template(s)

• Standard Residential Lease Agreement
• Month-to-Month Lease Agreement
• Room Rental (Roommate) Agreement
• Sublease Agreement

Ohio Landlord Tenant Laws

• Ohio Landlord Tenant Laws: Overview
• Ohio Tenant Screening Laws
• Guide to Rental Applications in Ohio [+Free Template]
• Ohio Security Deposit Laws
• How Much Can You Raise The Rent in Ohio?
• Ohio Eviction Laws