If you’re a new investor buying your first rental in Columbus, the way you structure move-in costs is one of the earliest decisions that quietly shapes everything that follows. Whether you’re closing on a single-family home in Clintonville or Grove City, a small multifamily in Olde Towne East or Franklinton, or a condo near Downtown or Ohio State, this choice affects cash flow, tenant quality, and how much legal and administrative risk you carry as an owner.
At a basic level, the decision comes down to security deposits versus move-in fees, but the real tension sits deeper.
On one side is cash flow and risk protection. Security deposits provide financial safeguards against improper damage to property, as specified in specific laws and documentation requirements under Ohio law. Move-in fees generate immediate, usable income and simplify bookkeeping, but they shift more risk back to the owner if something goes wrong.
On the other side is tenant expectations versus legal compliance. Columbus renters are still accustomed to security deposits, especially in single-family neighborhoods and higher-end rentals. At the same time, rising rents and tighter household budgets mean upfront affordability matters more than ever. A structure that feels reasonable to an investor can feel like a deal-breaker to a tenant, and vice versa.
It’s also critical to set expectations early: Ohio is not Chicago. Columbus does not operate under a city-specific ordinance like Chicago’s RLTO. Security deposits are legal and widely used here, but that does not mean they are consequence-free. Ohio law still imposes strict timelines, interest requirements in certain cases, and limits on what can be deducted. Many investor headaches start not with bad tenants, but with missed procedures.
Getting this decision right early helps you avoid disputes, shorten vacancies, and build systems that scale as your portfolio grows.
How Ohio Law Treats Security Deposits
When it comes to security deposits, Ohio plays by a very different rulebook than cities like Chicago. Columbus landlords are governed by Ohio Revised Code 5321.16, a statewide statute that outlines how security deposits must be handled before, during, and after a tenancy. There is no Columbus-specific landlord ordinance layered on top of state law, which often leads new investors to assume the rules are flexible or informal. They are not.
What Ohio law allows and requires
First, the basics. Security deposits are legal statewide, including in Columbus and all surrounding suburbs. Ohio does not cap the amount a landlord can collect, which is why one month’s rent remains the most common standard across Central Ohio.
However, Ohio law does impose important conditions that investors need to understand clearly.
- Interest requirements:
If a security deposit exceeds one month’s rent, the landlord must pay interest on the excess amount. This interest must be paid annually. Many self-managing landlords overlook this requirement entirely, especially when rents rise and deposits creep higher.
- Move-out deadlines:
After a tenant vacates, landlords have 30 days to either return the full deposit or provide an itemized list of deductions along with any remaining balance. This deadline is firm.
- Itemized deductions:
Any deductions must be clearly explained and tied to unpaid rent or damages beyond normal wear and tear. Vague statements or lump-sum charges leave landlords exposed if a tenant challenges the deductions.
The Real Compliance Burden of Security Deposits in Ohio
On paper, security deposits seem straightforward. In practice, they are one of the most common sources of landlord headaches in Ohio, especially for new investors who underestimate how procedural the process really is. The risk rarely comes from collecting the deposit; it shows up months or years later at move-out, when timelines, documentation, and calculations suddenly matter.
Practical obligations landlords often underestimate
Tracking interest accurately
Ohio requires landlords to pay interest when a security deposit exceeds one month’s rent. That sounds simple until rents increase, lease renewals change deposit amounts, or tenants stay multiple years. Many self-managing landlords either forget this requirement entirely or assume it’s insignificant. In disputes, forgetting to pay interest can invalidate otherwise reasonable deductions.
Properly itemizing deductions
At move-out, landlords must provide a clear, itemized list explaining any deductions. “Cleaning,” “repairs,” or “damage” without detail is rarely sufficient. Successful itemization usually ties specific charges to documented issues, invoices, or before-and-after photos. Without that level of detail, even legitimate charges can be challenged.
Meeting strict timelines
The 30-day deadline to return a deposit or provide deductions is not flexible. Missing it, even by a few days, weakens the landlord’s position immediately. Many disputes don’t hinge on whether damage existed, but on whether the landlord met the deadline.
Common mistakes new investors make
- Treating security deposits like operating cash rather than tenant funds
- Missing or miscalculating required interest payments
- Relying on memory instead of move-in and move-out documentation
- Sending partial explanations instead of formal itemized statements
These mistakes are especially common when investors scale from one property to several. What felt manageable with a single unit becomes inconsistent without clear systems.
The most important thing to understand is this: small procedural errors can still turn into costly disputes. Even when a landlord is otherwise acting fairly, missing a step in the process can shift leverage to the tenant and create legal, financial, and time-consuming consequences.
What Are Move-In Fees and Are They Legal in Columbus?
Move-in fees are one-time, non-refundable charges paid by a tenant at the start of a lease. Unlike security deposits, they are not held in trust and are not intended to be returned at move-out. Instead, they are treated as earned income for the landlord, typically used to offset the real costs associated with placing a new tenant in the property.
In Columbus and throughout Ohio, move-in fees are generally legal, but only when they are structured and communicated correctly.
How move-in fees are treated under Ohio law
Ohio landlord-tenant law does not specifically regulate move-in fees the way it does security deposits. That flexibility is what makes them appealing to some investors. However, that flexibility comes with responsibility.
For a move-in fee to be enforceable in Ohio, it must meet two key standards:
- Clearly disclosed:
The lease must plainly state that the fee is a move-in fee, list the exact amount, and explain when it is due.
- Non-refundable by design and by language:
The lease should explicitly state that the fee is non-refundable. If the language is vague or contradictory, courts may treat the fee like a security deposit regardless of the label.
The critical distinction investors must understand
Move-in fees are not damage deposits. They cannot be positioned as protection against unpaid rent or property damage. If a fee is described that way, it risks being reclassified as a security deposit, which brings Ohio’s deposit rules and deadlines back into play.
Because of that, move-in fees also do not replace:
- Proper tenant screening
- Clear lease enforcement
- Adequate owner reserves
They are an administrative and cash-flow tool, not a safety net.
Market reality in Columbus
Move-in fees are less regulated than security deposits, but they still need to be reasonable and transparent. Excessive or poorly explained fees can turn off qualified tenants and invite scrutiny if challenged. Investors who use move-in fees successfully in Columbus tend to keep the structure simple, consistent, and clearly communicated from the first showing.
When done correctly, move-in fees can reduce administrative burden and improve upfront cash flow. When done sloppily, they create confusion and legal risk that defeats the purpose entirely.
Why Some Columbus Landlords Are Using Move-In Fees
Move-in fees aren’t replacing security deposits across the board in Columbus, but they are becoming more common among investors who value simplicity and speed. For certain property types and strategies, they solve practical problems that security deposits often create.
What’s driving the shift for local investors
Reducing administrative complexity
For self-managing landlords or small portfolio owners, security deposits add ongoing tasks: tracking balances, monitoring interest requirements, meeting return deadlines, and preparing itemized deductions. Move-in fees eliminate most of that backend work. Once collected, there is nothing to track, reconcile, or return later.
Covering real turnover costs
Every move-out creates expenses, even when a tenant leaves a unit in decent shape. Cleaning, touch-up paint, minor repairs, marketing, and administrative time all add up. Move-in fees allow landlords to recover some of those costs immediately instead of fronting them and hoping a deposit covers the difference later.
Simplifying accounting
From a bookkeeping standpoint, move-in fees are straightforward income. They don’t sit on the balance sheet as tenant funds and don’t require special handling. This becomes increasingly valuable as investors add properties and want cleaner financial reporting.
Where move-in fees tend to work best
Move-in fees are most effective in Class B rentals and higher-turnover properties, where vacancy speed and upfront affordability matter.
They are commonly used in:
- Workforce housing
- Smaller multifamily properties
- Units competing heavily on price, location, and speed to lease
In these scenarios, a lower upfront cost often attracts more qualified applicants and reduces days on market.
Where move-in fees may not be ideal
Move-in fees are not always the right fit.
In high-end Class A rentals, tenants often expect a refundable security deposit and may view fees as unnecessary or unprofessional. Similarly, investors pursuing long-term tenant strategies may prefer deposits because they provide stronger protection and align with longer tenancies.
The takeaway for Columbus investors is simple: move-in fees are a tool, not a default. Used in the right context, they streamline operations. Used in the wrong one, they can hurt tenant perception and increase risk rather than reduce it.
Tenant Expectations in the Columbus Rental Market
One reason move-in strategies work so differently from city to city is tenant expectations. Columbus does not operate like Chicago, where move-in fees have become the default. In Columbus, security deposits are still common and widely expected, especially in single-family homes, suburban neighborhoods, and higher-quality rentals.
That said, expectations are changing, and investors who ignore those shifts often feel it in longer vacancy times.
Why deposits are still the norm, for now
Many Columbus renters associate security deposits with fairness and accountability. Families renting a home in Grove City or Clintonville often expect a refundable deposit and see it as standard practice. In these segments, a deposit can actually signal professionalism and stability rather than friction.
What’s changing in the Columbus market
At the same time, two forces are reshaping tenant behavior:
- Rising rents: As average rents climb across Central Ohio, tying up a full month’s rent in a deposit becomes more difficult for many households.
- Upfront affordability pressure: Tenants increasingly compare how much cash they need to move in, not just the monthly rent.
This shift shows up most clearly in competitive submarkets near Downtown, OSU, and employment hubs, where speed and affordability matter.
The behavioral comparison tenants actually make
From a tenant’s point of view, the math often looks like this:
- $1,600 rent + $1,600 security deposit
- $1,600 rent + a smaller non-refundable move-in fee
Even if the second option costs more over the long term, many renters prefer it because it lowers the immediate cash barrier. That preference can be the difference between leasing in days versus weeks.
Why tenant pool matters
Not all tenants think the same way.
- Students and young professionals tend to prioritize lower upfront costs.
- Relocating professionals often value speed and simplicity.
- Families and long-term renters are more comfortable with deposits and expect refunds at move-out.
For Columbus investors, the takeaway is simple: the right move-in structure depends heavily on who you’re renting to. Matching your approach to your tenant pool is just as important as complying with the law.
Cash Flow and Risk Tradeoffs for Investors
For Columbus rental investors, the choice between a security deposit and a move-in fee ultimately comes down to how you balance cash flow today against risk protection tomorrow. Both approaches can work, but they protect you in very different ways.
How security deposits protect owners
Security deposits are designed to act as a financial backstop. When structured and managed correctly, they provide:
- Better protection against tenant-caused damage, especially costly repairs that go beyond routine turnover
- Coverage for unpaid rent if a tenant defaults late in the lease
- Leverage at move-out, since funds are already in place to offset legitimate charges
The downside is administrative. Deposits must be tracked, returned on time, and supported with documentation. As your portfolio grows, that burden increases, and small process failures can outweigh the protection the deposit was meant to provide.
How move-in fees change the cash flow equation
Move-in fees flip the model.
- Immediate income: The fee is earned at move-in and can be used right away.
- No funds held in trust: There is no obligation to track balances, calculate interest, or issue refunds.
- Simpler accounting: Fees flow cleanly through income statements without future liabilities.
However, move-in fees offer less protection against major damage or extended nonpayment. Once collected, they are gone. If a tenant causes significant damage or stops paying rent, the fee will rarely cover the full cost.
The critical reminder for investors
Move-in fees are not a replacement for fundamentals. They do not substitute for:
- Strong tenant screening
- Adequate operating and repair reserves
- Clear lease enforcement
For Columbus investors, the smartest strategy is intentional. Choose the structure that fits your property type, tenant pool, and tolerance for administrative work, and then back it up with solid screening and reserves so one bad situation doesn’t undo months of good performance.
Best Practices for Structuring Either Option Correctly
Once you decide whether a security deposit or a move-in fee makes more sense for your Columbus rental, the next step is execution. Most problems don’t come from the choice itself; they come from how poorly that choice is structured or applied. Clear processes and consistency matter more than the specific option you use.
If you’re using security deposits
Security deposits can work well in Ohio, but only when they’re handled with discipline.
- Follow interest rules carefully.
If your deposit exceeds one month’s rent, track the excess amount and ensure interest is paid as required. This is one of the most overlooked obligations for self-managing landlords.
- Document condition thoroughly
Detailed move-in and move-out documentation protects you more than the deposit itself. Photos, written condition reports, and maintenance records make deductions defensible and disputes easier to resolve.
- Use consistent timelines
Treat the 30-day return deadline as non-negotiable. Have a repeatable process in place so deposits and itemized statements are sent on time, every time.
If you’re using move-in fees
Move-in fees are simpler, but only if the language and structure are clean.
- Use clear, non-refundable language.
The lease should explicitly state that the fee is non-refundable and explain what it covers in general terms.
- Avoid calling them “deposits.”
Even casual language can blur the legal distinction. Fees should never be framed as protection against damage or unpaid rent.
- Apply the fee consistently.
Use the same structure across similar properties to avoid confusion and claims of unfair treatment.
A strong recommendation for all investors
Do not mix poorly defined fees and deposits. Combining vague fees with a security deposit often creates more risk than protection. If tenants or courts can’t tell what money is refundable and what isn’t, you’re inviting disputes that could have been avoided with a clearer structure.
What Most New Columbus Investors Get Wrong
Many early mistakes come from assumptions rather than bad intent. Columbus investors often underestimate how quickly small missteps can compound.
Common pitfalls to avoid
- Assuming Ohio is “easy” on landlords
Ohio law may be lighter than some cities, but courts still expect strict adherence to timelines and procedures.
- Copying strategies from other states or cities
What works in Chicago, New York, or the West Coast doesn’t always translate to Central Ohio.
- Prioritizing convenience over enforceability
A structure that feels easy at move-in can become a liability at move-out if it isn’t legally clean.
- Not planning for disputes before they happen.
Most landlord-tenant conflicts are predictable. Investors who plan for them early rarely have to fight them later.
Getting these fundamentals right from the beginning makes your portfolio easier to manage, easier to scale, and faress stressful over time.
How Professional Property Management Reduces Risk
Professional property management doesn’t eliminate risk, but it dramatically reduces the most common and preventable mistakes that new investors make. The value isn’t in a single service; it’s in the systems that support consistent, defensible decisions across every lease, tenant, and move-out.
The real value behind the scenes
Systems, not guesswork
Experienced property managers operate with defined processes for leasing, move-ins, renewals, and move-outs. That means timelines are tracked automatically, deposits or fees are handled correctly, and nothing relies on memory or last-minute scrambling. For investors, this reduces exposure to missed deadlines and inconsistent handling.
Thorough documentation
Professional management teams document property condition at every stage. Move-in photos, inspection reports, maintenance records, and written communication create a clear paper trail. When questions arise about deductions or damages, decisions are supported by records rather than opinion.
Consistency across properties
Consistency is one of the biggest risk reducers in rental housing. Applying the same standards, lease language, and processes across units lowers the chance of disputes and claims of unfair treatment. This becomes especially important as a portfolio grows beyond one or two properties.
Why local context matters in Columbus
Columbus has its own realities that generic landlord advice doesn’t account for.
- Local courts: Central Ohio courts expect landlords to follow Ohio statutes closely. Clear documentation and timely communication matter far more than informal explanations.
- Local tenant expectations: What feels reasonable to a tenant in Clintonville may differ from expectations near OSU or Downtown. Local experience helps managers structure leases and move-in costs appropriately.
- Seasonal turnover: Columbus leasing activity spikes in summer and around the academic calendar. Having systems in place prevents rushed decisions during high-volume periods.
For many investors, professional property management isn’t about giving up control. It’s about putting guardrails around the business so one missed deadline or poorly documented move-out doesn’t undo months of steady returns.
Want Help Structuring Your Columbus Rental the Right Way?
Move-in costs are a small line item on paper, but they influence nearly every part of your rental’s performance, from tenant quality and cash flow to compliance and long-term risk. Getting that structure right early can save you months of frustration later.
RL Property Management works exclusively in Columbus and Central Ohio, which means decisions aren’t based on generic advice or out-of-state rules. They’re built around local courts, local tenant expectations, and the realities of managing rentals here, season after season.
The approach is process-driven and investor-aligned. Clear systems. Consistent documentation. Strategies that make sense for your asset class and long-term goals, not just what feels easiest today.
If you’re unsure whether a security deposit, move-in fee, or hybrid approach fits your property, a conversation can help clarify the tradeoffs before they become problems.
Options include:
- A no-pressure consultation to talk through your situation
- A rent analysis to see how your pricing and move-in structure compare locally
- A portfolio review to identify risks and opportunities as you scale
The goal isn’t to push a one-size-fits-all solution. It’s to help you build a Columbus rental strategy that holds up over time. Schedule a call with our team if you need help.