Security deposits in Oregon are regulated by Oregon Revised Statutes § 90.100 to § 90.460. Certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

Maximum Security Deposit

Oregon state law does not currently have a limit on the amount that landlords/property managers can require as security deposits, but state law mandates that the amount of the security deposit must be stated in the lease. Landlords/property managers may not charge a separate pet deposit if the pet is a service animal or companion animal that a tenant with a disability requires as a reasonable accommodation under fair housing laws.

Holding & Interest Requirements

Holding Requirements: Oregon state law does not currently require security deposits to be held in a bank account within the state, in a separate account, or in an interest-bearing account.

Interest on Deposits: Oregon state law does not currently require landlords to pay tenants interest on security deposits.

Information Provided to Tenant: Landlords/property managers must provide the tenant with a receipt after receiving the security deposit.

Deposit Refunds

Timeline: Within 31 days after the tenant vacates the property, the landlord/property manager must either (1) return the full security deposit to the tenant, or (2) provide the tenant with a written accounting of any deductions to the security deposit together with the portion of the security deposit being returned. If the landlord/property manager and tenant agree in a signed addendum at the beginning of the tenancy, the landlord/property manager may return the deposit electronically to a bank account or other financial institution designated by the tenant.

Permissible Deductions: Landlords/property managers may deduct the following from security deposit funds:

• Unpaid rent
• Damages beyond normal wear and tear
• Carpet cleaning, if: (1) the cleaning is done with a machine specifically designed for cleaning or shampooing carpets; (2) the carpet was cleaned or replaced after the previous tenancy; and (3) the lease permits the landlord/property manager to deduct the cost of carpet cleaning
• Landlord/property manager’s loss of use of the property during the performance of cleaning and repairs for which the tenant is responsible

Documentation of Deductions: The written accounting of deductions must specify the reason for withholding any portion of the security deposit.

‍Penalties for Violations: Failure to return the security deposit or provide the written accounting of deductions as required may result in the landlord/property manager being liable for up to 2x the amount of the security deposit, plus attorney’s fees and court costs if the tenant wins in a lawsuit.