Overview
Oregon takes a flexible approach to security deposits. While there is no statutory cap on the amount a landlord may charge, the deposit must be reasonable. Oregon law does, however, set strict rules for how deposits must be handled, what deductions are allowed, and when they must be returned.
This guide covers everything landlords and tenants need to know about security deposits in Oregon.
Deposit Limits
Oregon does not impose a specific statutory limit on security deposit amounts. However:
- The deposit must be reasonable in relation to the rental amount and condition of the unit
- Landlords may collect both a security deposit and a separate last month's rent deposit
- Landlords must clearly distinguish between different types of deposits in the rental agreement
- Nonrefundable fees must be clearly labeled as such; otherwise, all amounts collected are presumed to be refundable deposits
Pet Deposits
Landlords may charge an additional pet deposit, but this must also be reasonable. Service animals and emotional support animals are exempt from pet deposits under federal and state fair housing laws.
Allowable Deductions
Landlords may deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Cleaning: Costs to restore the unit to the same level of cleanliness as at move-in
- Damage beyond normal wear and tear: Repairs for tenant-caused damage (not ordinary wear)
- Other lease violations: Charges permitted under the rental agreement
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls
- Small nail holes from hanging pictures
- Worn carpet from regular use
- Faded paint due to sunlight
Damage beyond normal wear and tear includes:
- Large holes in walls
- Stained or burned carpet
- Broken windows or fixtures
- Unauthorized alterations to the unit
Return Timeline
Landlords must return the security deposit within 31 days of the tenant vacating the unit. The return must include:
- The remaining deposit amount (if any deductions were made)
- An itemized written statement listing each deduction and the amount
- Documentation or receipts for any deductions, if requested by the tenant
If the landlord fails to return the deposit or provide the required accounting within 31 days, the tenant may recover up to twice the amount wrongfully withheld.
The landlord must mail the deposit and accounting to the tenant's last known address, or to a forwarding address if one was provided.
cite: Or. Rev. Stat. § 90.300(12)–(16)
Pre-Move-Out Inspection
Oregon law does not require landlords to offer a pre-move-out inspection. However, it is considered best practice for landlords to conduct a walk-through with the tenant to identify any potential deductions before the final move-out. This can help prevent disputes and give tenants an opportunity to address issues.
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit
- File a claim in Small Claims Court (up to $10,000 in Oregon)
- Contact a tenant rights organization for assistance and mediation
Courts may award the tenant up to twice the deposit amount wrongfully withheld if the landlord acted in bad faith or failed to comply with the 31-day return requirement.