| 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.
Some cities and counties may have regulations which are more restrictive than the state laws presented here, as noted for Portland. Always check local laws.
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 material 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(A)
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1. If a Landlord requires, as a condition of tenancy, a Security Deposit that includes 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.
2. 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.
3. If a Landlord conditionally approves an application subject to an Applicant’s demonstration of financial capacity or to offset risk factors identified by the Applicant screening for tenancy as described in Section 30.01.086, the Landlord may require payment of an amount equal to one-half of one month’s Rent as a Security Deposit in addition to the other amounts authorized in this subsection. The Landlord must allow a Tenant to pay any such additional Security Deposit in installments over a period of up to 3 months in installment amounts reasonably requested by the Tenant.
Source Link - 2 Or. Rev. Stat. § 90.300(5)
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(a) Except as otherwise provided in this subsection, a landlord may not change the rental agreement to require the tenant to pay a new or increased security deposit during the first year after the tenancy has begun. Subject to subsection (4) of this section, the landlord may require an additional deposit if the landlord and tenant agree to modify the terms and conditions of the rental agreement to permit a pet or for other cause and the additional deposit relates to the modification. This paragraph does not prevent a landlord from collecting a security deposit that an initial rental agreement provided for but that remained unpaid at the time the tenancy began.
(b) 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 the new or increased deposit.
Source Link - 3 Or. Rev. Stat. § 90.300(3) & (4)
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(3) A written rental agreement, if any, must list a security deposit paid by a tenant or required by a landlord.
(4) A landlord may not charge a tenant a pet security deposit for keeping a service animal or companion animal that a tenant with a disability requires as a reasonable accommodation under fair housing laws.
Source Link - 4 OR Rev Stat § 90.300(2)
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(a) Except as otherwise provided in this section, a landlord may require a tenant to pay a security deposit. The landlord shall provide the tenant with a receipt for any security deposit the tenant pays. The landlord shall hold a security deposit or prepaid rent for the tenant who is a party to the rental agreement. A tenant’s claim to the security deposit or prepaid rent is prior to the claim of a creditor of the landlord, including a trustee in bankruptcy.
(b) Except as provided in ORS 86.782 (Sale of property) (10), 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 - 5 Portland City Code § 30.01.087(D)(1)
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a. 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 of all fixtures, appliances, equipment and personal property listed in the rental agreement and noting damage (the “Condition Report”). Both the Tenant and the Landlord shall sign the Condition Report. The Landlord shall take pictures of the items noted in the Condition Report and share those photographs with the Tenant.b. Should the Landlord and Tenant be unable to schedule a mutually convenient time to walk through the unit to complete the Condition Report, the Landlord will complete the Condition Report prior the Commencement Date. The Landlord shall take pictures of the items noted in the Condition Report and share those photographs with the Tenant on the Commencement Date.c. Within 7 days following the Commencement Date, the Tenant may complete and submit to the Landlord a Condition Report Addendum on a form provided by the Landlord. If the Tenant does not complete and submit a Condition Report Addendum to the Landlord within 7 days of the Commencement Date then the Landlord’s Condition Report becomes final.d. If the Tenant submits a Condition Report Addendum, the Landlord has 7 days to dispute the Condition Report Addendum in writing. If the Landlord fails to timely dispute the Condition Report Addendum, then the Condition Report, as modified bythe Condition Report Addendum, shall establish the baseline condition of the Dwelling Unit as of the Commencement Date against which the Landlord will be required to assess any Dwelling Unit repair or replacement needs identified in a Final Inspection (defined below) that will result in costs that may be deducted from the Tenant Security Deposit as of termination of the Rental Agreement (the “Termination Date”).e. If the Landlord disputes the Condition Report Addendum, and the Landlord and Tenant are unable to resolve the dispute as to the condition of the Dwelling Unit at the Commencement Date, the Condition Report and Condition Report Addendum shall be retained by the Landlord. Any unresolved dispute as to the condition of the Dwelling Unit as of the Commencement Date shall be resolved, if necessary, in any court of competent jurisdiction.f. The Landlord shall update the Condition Report to reflect all repairs and replacements impacting the Dwelling Unit during the term of the Rental Agreement and shall provide the updated Condition Report to the Tenant, and the Tenant may complete or update the Condition Report Addendum to reflect all repairs and replacements.
Source Link - 6 Portland City Code § 30.01.087(B)
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1. Within 2 weeks following receipt of a Tenant’s funds paid as a Security Deposit or for last-month’s Rent, a Landlord shall deposit all of such funds into a secure financial institution account segregated from the Landlord’s personal and business operating accounts. If the account is an interest-bearing account, all interest shall accrue proportionately to the benefit of the Tenant and shall be returned to the Tenant with the unused security deposit in accordance with Subsection B.2. below. 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. For interest bearing accounts, the Landlord must provide a receipt of the account and any interest earned at the Tenant’s request, no more than once per year. 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.
2. A Landlord shall provide a written accounting and refund in accordance with ORS 90.300.
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