| Quick Facts | Answer |
| Maximum / Limit | No Limit |
| Receipt Requirement | Yes |
| Inventory Requirement | None |
| Interest Requirement | None |
To learn about laws on security deposit returns in Oregon, click here.
Maximum Security Deposit Allowed in Oregon
There is no limit on how much a landlord can collect for a security deposit in Oregon. However, local governments can enact their own rules regarding security deposits, like in Portland.
In Portland, the maximum security deposit is 1 month’s rent. However, if last month’s rent is also collected in advance, the maximum security deposit is 1/2 month’s rent. See Portland Landlord-Tenant Law for more information.
During the first year of the lease term, landlords cannot increase the security deposit unless the landlord and tenant agree to a change in the terms of the lease (e.g. the tenant gets a new pet).
After the first year of the lease term, if a landlord requires a new or increased security deposit, the tenant must be allowed at least 3 months to pay the deposit.
Can Landlords Charge an Additional Pet Deposit in Oregon?
Yes, landlords can collect an additional pet deposit in Oregon, except for service dogs and emotional support animals.
How Much Rent Can a Landlord Collect Upfront in Oregon?
There is no limit on the amount of rent that can be collected upfront in Oregon. Many states have a limit on the amount of rent that can be collected at once, but Oregon does not.
Security Deposit Collections in Oregon
When landlords collect a security deposit in Oregon and execute a written lease agreement, the security deposit must be listed in the agreement.
Do Landlords Have to Provide a Receipt for the Security Deposit in Oregon?
Yes, landlords in Oregon must provide a receipt for the security deposit.
What Obligations Do Landlords Have to Establish the Condition at Move-in in Oregon?
Oregon state law does not have specific obligations before a tenancy. However, local governments can enact their own requirements, like in Portland. Check your local laws to determine if your area has additional security deposit requirements.
In Portland, landlords must conduct a walk-through inspection (with the tenant, if reasonably possible) before the start of the lease term and complete a detailed report of the condition of the rental unit with pictures.
Security Deposit Holdings in Oregon
Oregon law does not require landlords to hold security deposits separate from other funds. Some other states mandate how and where security deposits are held, but Oregon does not.
In Portland, landlords are required to hold security deposits in an account of a secure financial institution and they cannot be commingled with the landlord’s own funds. The rental agreement must state the name and address of the financial institution and whether it is an interest-bearing account.
Are Tenants Entitled to Interest on Their Security Deposit 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 Are Security Deposits Accounted for in Oregon?
Security deposits are not considered taxable income when they are collected.
What Happens to a Security Deposit When the Property is Sold in Oregon?
When a property is sold in Oregon, the seller must transfer the security deposit to the new owner, who must handle it according to the same rules.
Sources
- 1 Portland City Code § 30.01.087
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If a Landlord does not require last month’s Rent, a Landlord may not collect more than an amount equal to one month’s Rent as a Security Deposit.
Source Link - 2 Portland City Code § 30.01.087
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If a Landlord requires…last month’s Rent, a Landlord may not collect as an additional part of the Security Deposit more than an amount equal to one-half of one month’s Rent.
Source Link - 3 OR Rev Stat § 90.300
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…a landlord may not…require the tenant to pay a new or increased security deposit during the first year after the tenancy has begun.
Source Link - 4 OR Rev Stat § 90.300
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…the landlord may require an additional deposit if the landlord and tenant agree to modify the terms and conditions of the rental agreement…
Source Link - 5 OR Rev Stat § 90.300
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If a landlord requires a new or increased security deposit after the first year of the tenancy, the landlord shall allow the tenant at least three months to pay…
Source Link - 6 OR Rev Stat § 90.300
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A landlord may not charge a tenant a pet security deposit for keeping a service animal or companion animal…
Source Link - 7 OR Rev Stat § 90.300
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A written rental agreement, if any, must list a security deposit paid by a tenant or required by a landlord.
Source Link - 8 OR Rev Stat § 90.300
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The landlord shall provide the tenant with a receipt for any security deposit the tenant pays.
Source Link - 9 Portland City Code § 30.01.087
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Prior to the Commencement Date, the Landlord will make reasonable efforts to schedule a time which is convenient for both the Landlord and the Tenant for a walk through of the unit to complete a report noting the condition…
Source Link - 10 Portland City Code § 30.01.087
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…a Landlord shall deposit all of such funds into a secure financial institution account segregated from the Landlord’s personal and business operating accounts.
Source Link - 11 Portland City Code § 30.01.087
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The Rental Agreement must reflect the name and address of the financial institution at which the Security Deposit is deposited and whether the Security Deposit is held in an interest-bearing account.
Source Link - 12 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 - 13 OR Rev Stat § 90.300
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…the holder of the landlord’s interest in the premises at the time the tenancy terminates is responsible to the tenant for any security deposit or prepaid rent and is bound by this section.
Source Link
