| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent, utilities, and late fees
Costs of damage Damages due to breach of lease Carpet cleaning costs |
| Return Deadline | 31 Days |
| Itemized Deductions | Required |
| Penalty for Late Return | 2x Amount due + court costs + attorneys’ fees |
For laws on security deposit collections and holdings in Oregon, click here.
Security Deposit Deductions in Oregon
In Oregon, the following can be deducted from security deposits:
- Unpaid rent, utilities, and late fees
- Costs of damage excluding normal wear and tear
- Monetary damage as a result of a breach of the lease
- Costs of carpet cleaning
Landlords in Oregon can make deductions for damage whether or not they repair the damage.
Most states, such as Oregon, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What is Considered Normal Wear and Tear in Oregon?
“Normal wear and tear” is deterioration that occurs naturally as a result of the tenant using the property as it was designed to be used.
Examples include:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
“Damage” means destruction to the rental unit that occurs because of abuse or negligence by a tenant during the course of the tenancy.
Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in Oregon?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in Oregon?
In Oregon, landlords can charge a tenant for nail holes if they damage the walls in a way that is not a result of ordinary enjoyment of the rental unit.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage and thus, chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in Oregon?
Landlords in Oregon can charge a cleaning fee if the tenant causes damage that requires cleaning (e.g. walls stained from smoke). Landlords can also charge for carpet cleaning requiring more than a common vacuum cleaner.
However, in order to recover costs for carpet cleaning, landlords must:
- Use a machine specifically designed to clean carpets
- Only charge a fee if the carpet was cleaned or replaced after the previous tenancy
- Include the charge in the lease agreement as a condition regardless of whether or not the tenant cleans the carpet
- Conduct the cleaning in a timely manner if it is done while the tenant occupies the rental unit
Can the Landlord Charge for Painting in Oregon?
In Oregon, landlords can charge for painting, except for normal wear and tear. For example, if the tenant:
- Causes damage beyond normal wear and tear
- Repaints the wall but is not permitted to do so under the lease agreement
- Repaints the wall in an unprofessional way
Normal wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint
Landlords can charge for repainting if the damage is not the result of normal use. This includes stains, large or deep scratches, and water damage.
Security Deposit Returns in Oregon
Landlords must return a security deposit by first-class mail or hand-delivery to the tenant’s last known address no later than 31 days after the lease term ends and the tenant vacates the rental unit. If deductions are made, an itemized list of deductions must be included.
Oregon does allow a landlord to deliver the security deposit and/or itemized list of deductions via email, but only if the landlord and tenant have previously made a special agreement to allow electronic notice.
When returning a security deposit in Portland, landlords must:
- Provide a completed Rental History Form
- Provide written notice of the tenant’s security deposit rights (or a printed copy of Portland City Code § 30.01.087 with contact information for the nearest Legal Aid Services of Oregon or the Oregon State Bar)
- Conduct a final inspection
- Create a final condition report detailing any damage beyond normal wear and tear with pictures
See Portland Landlord-Tenant Law for more information.
How Long Do Landlords Have To Return Security Deposits in Oregon?
Oregon landlords have 31 days after the lease term ends and the tenant vacates the rental unit to return any remaining portion of a security deposit.
However, the landlord must return the security deposit within 14 days after a notice of termination if a government agency deems the rental unit unsafe due to conditions that may affect the health or safety of the tenant. The tenant can choose the method of delivery. If they fail to do so, the landlord must return the deposit by first-class mail.
Do Landlords Owe Interest on Security Deposits in Oregon?
Oregon state law does not require landlords to provide interest on held security deposits.
In Portland, if a security deposit is held in an interest-bearing account, it must be paid to the tenant unless it is applied toward damages. However, landlords can keep up to 5% of the interest for administrative expenses.
How Do Landlords Give Notice?
If deductions are to be made from the security deposit, an itemized statement of deductions must be sent by first-class mail or hand-delivery to the tenant’s last known address. The statement of deductions must provide separate accounting for the security deposit and prepaid rent (which can only be used for unpaid rent).
Security deposits and written statements of deductions cannot be sent by certified or registered mail.
Can a Security Deposit Be Used for Last Month’s Rent in Oregon?
Oregon law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Disputes in Oregon
If landlords do not return the security deposit or provide a written statement of deductions, if any, within the required time period, tenants can file for damages in court up to twice the amount wrongfully withheld plus court costs and reasonable attorneys’ fees.
In Portland, the maximum penalty is $250 per violation plus actual damages, court costs, and reasonable attorneys’ fees.
Tenants can also take legal action against a landlord for:
- Failure to list the security deposit in the lease agreement
- Unreasonable deductions
How Can Tenants File a Dispute for a Security Deposit in Oregon?
If a landlord fails to perform their obligations regarding a security deposit, the tenant can file a dispute in the small claims division of Circuit Court or Justice Court if the amount of damages is less than $10,000. If the amount is greater, the tenant must file a civil case in the Circuit or Justice Court.
A small claims case regarding the return of a security deposit must be filed within 1 year.
Cases are filed in the county where the rental property is located or where the defendant lives. Representation by an attorney is not permitted unless approved by the judge. Filing fees vary depending on the court.
Sources
- 1 OR Rev Stat § 90.300
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The landlord may claim from the security deposit only the amount…to remedy the tenant’s defaults in the performance of the rental agreement including, but not limited to, unpaid rent; and…to repair damages to the premises caused by the tenant, not including ordinary wear and tear.
Source Link - 2 OR Rev Stat § 90.300
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A landlord is not required to repair damage caused by the tenant in order for the landlord to claim against the deposit for the cost to make the repair.
Source Link - 3 OR Rev Stat § 90.300
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The landlord may claim from the security deposit only the amount reasonably necessary…
Source Link - 4 OR Rev Stat § 90.300
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This section does not preclude the landlord or tenant from recovering other damages under this chapter.
Source Link - 5 OR Rev Stat § 90.300
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Defaults and damages for which a landlord may recover under this subsection include…carpet cleaning, other than the use of a common vacuum cleaner…
Source Link - 6 OR Rev Stat § 90.300
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…landlord may recover…carpet cleaning…if: (i)The cleaning is performed by use of a machine specifically designed for cleaning or shampooing carpets; (ii)The carpet was cleaned or replaced after the previous tenancy…written rental agreement provides that the landlord may deduct the cost of carpet cleaning…
Source Link - 7 OR Rev Stat § 90.300
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The landlord shall return to the tenant the security deposit or prepaid rent or the portion of the security deposit or prepaid rent that the landlord does not claim…not later than 31 days after the tenancy terminates and the tenant delivers possession to the landlord.
Source Link - 8 OR Rev Stat § 90.300
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If the tenancy is terminated, as a result of conditions as described in…this section, within 14 days of the notice of termination the landlord shall return to the applicant or tenant…the deposit to secure the execution of a rental agreement…
Source Link - 9 Portland City Code § 30.01.087
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If the account bears interest, the Landlord is required to pay such interest in full, minus an optional 5 percent deduction for administrative costs from such interest, to the Tenant unless it is used to cover any claims for damage.
Source Link - 10 OR Rev Stat § 90.300
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In order to claim all or part of any prepaid rent or security deposit…the landlord shall give to the tenant a written accounting that states specifically the basis or bases of the claim.
Source Link - 11 OR Rev Stat § 90.300
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The landlord shall give a separate accounting for security deposits and for prepaid rent.
Source Link - 12 OR Rev Stat § 90.100
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“First class mail” does not include certified or registered mail, or any other form of mail that may delay or hinder actual delivery of mail to the recipient.
Source Link - 13 OR Rev Stat § 90.300
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If the landlord fails to comply…or if the landlord in bad faith fails to return all or any portion of any prepaid rent or security deposit…the tenant may recover the money due in an amount equal to twice the amount…withheld…
Source Link - 14 OR Rev Stat § 90.255
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In any action on a rental agreement or arising under this chapter, reasonable attorney fees at trial and on appeal may be awarded to the prevailing party together with costs…
Source Link - 15 Portland City Code § 30.01.087
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A Landlord that fails to comply with…this Section shall be liable to the Tenant for an amount up to $250 per violation plus actual damages, reasonable attorney fees and costs…
Source Link - 16 OR Rev Stat § 46.405
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… an action for the recovery of money…may be commenced and prosecuted in the small claims department if the amount or value claimed in the action does not exceed $10,000.
Source Link - 17 OR Rev Stat § 12.125
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An action arising under a rental agreement or ORS chapter 90 shall be commenced within one year.
Source Link - 18 Or. Rev. Stat. § 90.155(1)(d)
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Source Link
Except as provided in subsection (5) of this section, electronic mail, for written notices to the landlord or the tenant, only if allowed under a written addendum to the rental agreement that:
(A) Specifies the electronic mail address from which the landlord agrees to send, and at which the landlord agrees to receive, electronic mail; (B) Specifies the electronic mail address from which the tenant agrees to send, and at which the tenant agrees to receive, electronic mail; (C) Is executed by both parties after the tenancy begins and the tenant has occupied the premises; (D) Allows the landlord or tenant to terminate the service of written notice by electronic mail or to change their specified electronic mail address for receipt of written notice by giving no less than three days’ written notice; and (E) Includes notice in substantially the following form: ______________________________________________________________________________
THIS IS AN IMPORTANT NOTICE ABOUT YOUR RIGHTS REGARDING RECEIPT OF WRITTEN NOTICES.
By signing this addendum, you agree to receive written notices from your landlord by e-mail. This may include important legal notices, including rent increase and tenancy termination notices. Failure to read or respond to a written notice could result in you losing your housing or being unaware of a change in rent. Signing this addendum is voluntary. Only agree to service of written notices electronically if you check your e-mail regularly.
______________________________________________________________________________
- 19 Or. Rev. Stat. § 90.300(13) & (14)
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Source Link
(13) The landlord shall return to the tenant the security deposit or prepaid rent or the portion of the security deposit or prepaid rent that the landlord does not claim in the manner provided by subsections (11) and (12) of this section not later than 31 days after the tenancy terminates and the tenant delivers possession to the landlord. If agreed to by both parties in an addendum executed after the tenancy begins and the tenant has occupied the premises, the landlord may return any amount due under this subsection electronically to a bank account or other financial institution designated by the tenant. (14) The landlord shall give the written accounting required under subsection (12) of this section or shall return the security deposit or prepaid rent as required by subsection (13) of this section by personal delivery or by first class mail or, if allowed under ORS 90.155(1)(d), by electronic mail.
