(a) All landlords who own or control more than ten rental units located within the municipal boundaries of the City of Reynoldsburg and who require a security deposit shall offer to accept at least one of the three options set forth below in lieu of the required security deposit:
(1) Rental security insurance that satisfies the following criteria:
A. The insurance provider is an approved carrier licensed by, and in good standing with, the Ohio Department of Insurance; and
B. The insurance must permit the payment of premiums on a monthly basis, unless the tenant selects a different payment schedule; and
C. The coverage is effective upon the payment of the first premium and remains effective for the entire lease term; and
D. The coverage provided per claim is no less than the amount the landlord requires for security deposits.
(2) Payment of the security deposit over the period of no less than six equal monthly installment payments, which installments shall be due on the same day as the monthly rent payment and which may be paid together with the monthly rent payments in a single transaction, absent separate agreement by the landlord and tenant; or
(3) Payment of a reduced security deposit, which amount shall be no more than 50% of the monthly rental rate charged for the subject rental unit.
(b) Prior to entering into a rental agreement, a landlord shall provide written notice to a prospective tenant of the available options provided in division (a)(1) through (a)(3) of this section.
(c) If there is no rental security insurance available, which meets the criteria of division (a)(1) of this section, within the City of Reynoldsburg, a landlord shall satisfy the obligations of this section by offering, at the option of the landlord, one of the rental security deposit alternatives provided in division (a)(2) and (a)(3) of this section.
(d) This section shall not apply to any security deposit placed with a landlord to secure the availability of a rental unit more than 60 days prior to the commencement of the rental period.
(e) A tenant who chooses to provide rental security insurance in lieu of a security deposit shall not be required to provide additional security or insurance coverage per claim in an amount greater than the amount required for security deposits.
(f) The provisions of this section shall apply to any residential lease that is executed or renewed after the effective date of this division.
(Ord. 63-2021. Passed 5-10-21.)