Overview
Oregon law strictly regulates how landlords handle security deposits to protect tenants from unfair practices. The statutes provide detailed requirements for deposit collection, use, and return.
Under Oregon Revised Statutes § 90.300, landlords are required to manage deposits fairly and transparently. Non-compliance can lead to financial penalties and potential forfeiture of the right to retain any part of the deposit.
This guide covers:
How much landlords can charge
Where deposits must be stored
Rules for returning security deposits
Penalties for non-compliance
Related Statute: ORS § 90.300
1. Security Deposit Limits & Storage Requirements
Maximum deposit: Oregon law does not set a specific limit on the amount a landlord can charge for a security deposit.
Storage requirements: While landlords must keep deposits safe and separate from personal funds, there is no requirement to place the funds in a separate or interest-bearing account.
Tenant notification: Landlords must provide tenants with a written receipt for the security deposit upon collection, even if no request is made.
Law Reference: ORS § 90.300(2)
2. Security Deposit Returns & Allowable Deductions
Return deadline: Landlords must return the security deposit within 31 days after the termination of the tenancy and delivery of possession.
Permissible deductions: Deductions may be made for unpaid rent, damage beyond ordinary wear and tear, and cleaning charges necessary to restore the unit to move-in condition.
What landlords cannot deduct: Landlords may not deduct for normal wear and tear such as minor scuff marks or worn carpeting.
Itemized statement required: An itemized accounting of any deductions must accompany the returned portion of the deposit.
Law Reference: ORS § 90.300(12)
3. Interest Payments & Documentation Requirements
Interest payments: Oregon law does not require landlords to pay interest on security deposits unless otherwise specified in the lease.
Move-in condition report: A written condition report is not mandatory but is strongly encouraged to avoid future disputes.
Tenant review period: Tenants should thoroughly inspect and document the unit’s condition at move-in and move-out to ensure fairness in the handling of the deposit.
Failure to provide documentation: If the landlord fails to provide an itemized accounting within 31 days, they forfeit the right to retain any portion of the deposit.
Law Reference: ORS § 90.300(12)(c)
4. Penalties for Mishandling Security Deposits
Oregon law outlines penalties for landlords who mishandle security deposits.
Failure to return the deposit within 31 days may result in the landlord owing the tenant twice the amount wrongfully withheld.
Failure to provide an itemized statement can also lead to forfeiture of the deposit and additional damages.
Law Reference: ORS § 90.300(16)
Key Takeaways
There is no limit on deposit amounts, but landlords must follow strict return and accounting procedures.
Deposits must be returned within 31 days, along with a detailed itemized statement if deductions are made.
Interest is not required, unless agreed upon in the lease.
Normal wear and tear cannot be deducted from the deposit.
Non-compliance can result in double damages and legal action.
By understanding and following Oregon security deposit laws, landlords can ensure compliance, and tenants can better safeguard their financial interests.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
