Ohio renter discovers his landlord transferred ownership of his home and spent most of his security deposit without telling him, now new owner demands another $500: 'I was never informed'

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Cata Holmes • Writer
Jul 13, 2026 5:00 PM EDT

What happens to a security deposit when a rental property changes owners?

An Ohio renter was surprised when a new landlord requested another $500 security deposit after purchasing the home he had rented for six years. The previous landlord claimed she had already spent most of the original deposit on plumbing repairs, despite never notifying the tenant. After digging through years of records, the renter uncovered proof of additional deposit payments, ultimately resolving the dispute.

Talking from experience here, I'm a tenant and have been for a while. When you sign a lease, the money you put into the deposit is money that has to feel like non-existent. The reason behind this is that if the landlord considers they own this money, they will most likely spend it. And that's when the problem begins. 

In the case of this story, the tenant claimed never been informed about the plumbing issues that ended up costing $500, which he had to replace. Eventually, after analyzing more numbers, they ended up solving the problem, but that doesn't mean he had the worst time of his life, not only finding out the property had been sold, but also having to pay an entire security deposit that wasn't in his plans.

The relationship between a landlord and a tenant is a very delicate one, and should be respected as it is. We are talking about a lot of money and also about someone's home. Those are sensible topics that need to be addressed with the care and the responsability it needs. I'm glad the situation ended and that both of them are happy and with peace of mind, which is the most important thing nowadays. Let us know in the comments what your opinion is on this case!

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  • Large single-family home with a landscaped yard.
    via Unsplash+ (via Sieuwert Otterloo)

    Large single-family home with a landscaped yard.

    This image is used for illustrative purposes only.

  • I've lived in the same rental for 6 years. Last month my landlord let me know that she would be transferring the ownership of the house to someone else. She asked me how much my security deposit was ($725) and that was the last I heard of it. The new owner officially took over the property around mid June.
    via TommyRiot
  • To my understanding, my Landlord should have just transferred him the entire $725 security deposit upon selling him the house, yes? The new owner brought by a copy of the new lease (that I haven't signed) stating that I'm supposed to give him a $500 security deposit. When I ask him about the security deposit with the previous Landlord, he told. me she only gave him about $200 and had to spend the other $500 on plumbing issues.
    via TommyRiot
  • I was never informed either over the phone or through text about any plumbing issues. There have been a couple of issues with my toilet during the time I've lived here, but as far as I know my security deposit isn't supposed to be going towards that, is it? It's meant to be held onto and then returned at the end of my tenancy with her along with an itemized list of deductions if any.
    via TommyRiot
  • I never received the security deposit back nor was I told about any sort of deductions. There was a walk-through inspection a couple of weeks before she sold the house and she didn't say anything about anything being wrong to me, nor did she convey it through text or in writing otherwise.
    via TommyRiot
  • The new Landlord says he has a statement showing how much she spent, but that doesn't have anything to do with me, does it? I was never informed, nor did I move out of the house at any point. I was never informed of any issues with the plumbing aside from the occasional issue she had to get a plumber for, but still, that isn't supposed to come out of my deposit, is it? considering it happened before my tenancy with her ended?
    via TommyRiot
  • it's worth noting that this Landlord has done other shifty sh in the past, like leaving me without a functional toilet for multiple days, and leaving me without functional heat for five days in the middle of winter because she didn't wanna pay to have the part replaced. If I'm right about this, then my best guess is that she was just really banking on the guy that she sold this house to not knowing what he was doing.
    via TommyRiot
  • i appreciate any links to laws regarding any of this, since im a bit confused. I'm supposed to talk with my current tomorrow.
    via TommyRiot
  • EDIT: Now she's saying it was for an incident some years ago (I do not remember her telling me that she was taking money out of the security deposit). This was never conveyed to me in writing and if this was the case would she still owe me an itemized receipt within 30 days of the incident? She's telling me she doesn't have to show it until I move out.
    via TommyRiot
  • Young renter standing outdoors, representing a tenant navigating housing concerns, lease issues, and security deposit disputes.
    via Unsplash+ (via Irene Strong)

    Young renter standing outdoors, representing a tenant navigating housing concerns, lease issues, and security deposit disputes.

    Represented by model.

  • EDIT 3: crisis averted. The initial Landlord had me pay extra deposit that I guess she was just assuming I wasn't going to remember (because she didn't write them in the lease) or ask about but I dug seven years back in my PayPal history and found that sh so she gave all that to the new guy and now he doesn't even want the $500 and I get some of what she gave him back. yippee.
    via TommyRiot
  • jmooremcc NAL. Your previous landlord should have put your deposit in an escrow account and turned it over to the new owner after the sale. They had no right to spend your security deposit. The new owner needs to go after the previous owner to recover those funds and you shouldn't be charged for an additional security deposit.
    via TommyRiot
  • quantum-entangled308 Nope. New land lord should have gotten the funds in escrow. Either way new land lord will be liable to pay you your deposit when you leave.
    via TommyRiot
  • AppropriateWonder719 Check your state regulations - I think Ohio has double damages if they mess with your security deposit- it should be in an interest bearing account, and returned (if no damages) within 30 days. Used to be a Realtor, the one thing I would tell Landlord: document everything so you have proof. Obviously the previous and new person and not the sharpest tools in the shed, or as I call it, a dull spoon.
    via TommyRiot
  • Alternative_Swan_497 NAL. Your former landlord screwed up here. When the property changed ownership, the security deposit should have been returned to you, or transferred to the new owner with paperwork confirming receipt.
    via TommyRiot
  • Person reviewing and signing housing documents beside a model home and keys, representing rental agreements, security deposits, and tenant rights.
    via Unsplash+ (via Getty Images)

    Person reviewing and signing housing documents beside a model home and keys, representing rental agreements, security deposits, and tenant rights.

    The photograph does not depict the actual documents, property, or events described in the story.

  • zipity90 NAL but I work for a nonprofit that deals with this kind of stuff. Tenant law is very dependent on the location. You can contact legal aid society to see if they can give you an idea of your right/represent you for free. Or find a hud approved housing nonprofit that can guide you. They are listed on huds website.
    via TommyRiot
  • lipschas Plumbing is not your responsibility unless you purposely done something to the plumbing that was all on her as normal wear and tear that does not come out of security deposit
    via TommyRiot
  • Adbam Your existing lease transfers with the property and the deposit should have as well. This is a problem between them.
    via TommyRiot
  • Is It Soup_Season Have you read your state's landlord- tenant act or tenant's rights laws? Start there.
    via TommyRiot
  • Sensitive Scholar_17 I am lawyer but now manage commercial property. My company sold a commercial building we absolutely turned 100% of the deposits over to the new company. Unfortunately, you are entering into a new lease with a new landlord and they can require any deposit they wish. Your remedy in this situation would be to sue your prior landlord for defalcation which is the misappropriation of money that you hold in trust.
    via TommyRiot
  • cajunbeary You can always write a letter to the landlord and cc a lawyer,...
    via TommyRiot

  • Sometimes the biggest surprise isn't the missing money itself, but realizing how much easier it is to protect yourself when you've kept the receipts. Trust is important in any rental relationship, but situations like this are a reminder that good records can be just as valuable as a good landlord.

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