Overview
Oregon security deposit laws are governed by ORS 90.300. Oregon has strong tenant protections, including restrictions on deposit increases during the first year of tenancy, required receipts, and the right to request a pre-move-out inspection. Portland has additional local rules that impose stricter limits. Passive's deposit management platform helps navigate these complex requirements.
Maximum Security Deposit
Oregon state law does not set a specific limit on security deposit amounts. Landlords may charge any reasonable amount.
Portland Exception
Portland has stricter local limits under Portland City Code 30.01.087:
- If the landlord requires last month's rent, they cannot collect more than an additional half month's rent as security deposit
- If the landlord does not require last month's rent, the security deposit cannot exceed one month's rent
Most Oregon landlords typically request 1-2 months' rent.
Return Timeline
Under ORS 90.300, landlords must return the security deposit within 31 days after:
- Termination of the tenancy, AND
- The tenant delivers possession to the landlord
Required Documentation
The return must include an itemized written accounting of any deductions. If the landlord fails to provide this within 31 days, they forfeit the right to retain any portion of the deposit.
Interest Requirements
Oregon state law does not require landlords to pay interest on security deposits unless otherwise specified in the lease.
Portland Exception
In Portland, if the landlord uses an interest-bearing account: (Washington has similar requirements—see Washington security deposit laws.)
- All interest accrues proportionately to the benefit of the tenant
- Landlord must pay such interest in full
- An optional 5% deduction for administrative costs is permitted
Deposit Increase Restrictions
Oregon has unique rules limiting when landlords can increase deposits:
- Landlords cannot require a new or increased security deposit during the first year of tenancy
- After the first year, if a new or increased deposit is required, the landlord must allow the tenant at least 3 months to pay the new or increased amount
Receipt Requirements
Oregon landlords are required to provide a written receipt for any security deposit paid by or required of the tenant.
Move-Out Inspection Rights
Under ORS 90.300(7), tenants have the right to request an initial move-out inspection:
- The inspection helps identify issues the landlord might deduct for
- Gives tenants the opportunity to address issues before the final move-out
Allowable Deductions
Landlords may deduct from the security deposit for:
- Unpaid rent
- Damages beyond ordinary wear and tear
- Cleaning costs necessary to restore the unit to move-in condition
- Other lease violations
Normal wear and tear cannot be charged to the tenant.
Pet Deposits
Pet deposits are allowed, but landlords cannot charge pet deposits for service animals or assistance animals.
Penalties for Non-Compliance
Under ORS 90.300(12), missing the 31-day deadline can result in:
- Liability for twice the deposit amount if the tenant takes the landlord to court
- Forfeiture of the right to retain any portion of the deposit
Common Compliance Questions
What counts as "normal wear and tear"?
Normal wear and tear includes minor scuffs on walls, slightly worn carpet in high-traffic areas, small nail holes from hanging pictures, and faded paint from sunlight. It does not include large holes in walls, stained or burned carpet, broken fixtures, or damage from pets. When in doubt, document the condition at move-in with dated photos.
How should I document the unit's condition?
Complete a detailed move-in checklist with the tenant, noting existing damage, appliance conditions, and overall cleanliness. Take timestamped photos or video of every room. At move-out, repeat the process. This documentation protects both parties and makes deduction decisions defensible if disputed. Schedule a demo to see how Passive handles move-in and move-out inspections.
Can I deduct for unpaid utility bills?
Only if your lease specifically allows it and the utilities are in your name. If utilities are in the tenant's name, contact the utility company directly—they have their own collection processes. Never make unauthorized deductions, even for amounts you believe the tenant owes.