Oregon Security Deposit Laws in 2025

Last updated: December 2025

Managing security deposits can feel like navigating a minefield for both renters and property owners. After helping thousands of landlords and tenants through Hemlane's property management platform, we have seen firsthand how confusion about Oregon's security deposit laws leads to disputes that could have been easily avoided.

Let me walk you through everything you need to know about security deposits in Oregon whether you are a first-time renter in Portland or a landlord managing properties across the state.

What Oregon Law Says About Security Deposits

Oregon's security deposit rules are spelled out in Oregon Revised Statutes § 90.300, which the state legislature has refined over the years to balance landlord protection with tenant rights. The law treats security deposits as the tenant's money, not the landlord's, until there is a legitimate reason to keep it.

This is what you can actually use a security deposit for in Oregon:

• Repairing damage beyond normal wear and tear
• Covering unpaid rent
• Addressing lease violations that cost money to fix

How Much Can Landlords Charge?

According to ORS 90.300, Oregon caps security deposits at reasonable amounts:

Unfurnished units: Maximum of one month's rent
Furnished units: Maximum of two months' rent

So if you are renting an unfurnished apartment in Eugene for $1,500 per month, your landlord cannot legally charge more than $1,500 as a security deposit. I have seen landlords try to charge more, claiming their property is "high-end" or in a "desirable area." These excuses don't matter under Oregon law.

What About Non-Refundable Fees?

This is something that surprises many people- Oregon law prohibits most non-refundable move in fees. The Oregon State Bar's landlord-tenant guide confirms that landlords cannot charge:

• Non-refundable move-in fees
• Non-refundable cleaning fees
• Non-refundable application fees. Though reasonable screening costs are allowed
• Last month's rent on top of a full security deposit

This protection exists because the legislature recognized that non-refundable fees often became a way to extract extra money from renters without justification.

Landlord Responsibilities: What the Law Requires

Oregon does not just set limits on deposits, it holds landlords to strict standards for handling them.

The 31-Day Rule

Within 31 days after a tenant moves out, landlords must either:

1. Return the full deposit, OR
2. Provide an itemized written statement explaining any deductions, along with the remaining balance

This deadline is firm. According to ORS 90.300(12), missing it can cost landlords double the deposit amount if the tenant takes them to court.

I've worked with landlords who thought "31 days" meant "about a month" and sent statements on day 33 or 34. That two-day difference can be expensive.

Trust Account Requirements

Oregon law requires landlords to hold security deposits in a separate trust account—they can't mix deposit money with their personal or business funds. The Oregon Real Estate Agency oversees these requirements for property managers and licensed brokers.

This rule exists because security deposits are not actually the landlord's money. Think of it like holding someone's coat at a party and you are responsible for keeping it safe and returning it when they leave.

Written Receipts

Within four days of receiving a security deposit, landlords must provide a written receipt showing:

• The amount paid
• The date received
• What the payment covers

It sounds simple but this receipt becomes crucial evidence if disputes arise later. Keep it somewhere safe, take a photo and store it in the cloud if you are a tenant.

Tenant Rights: More Than You Might Think

Oregon gives renters substantial protections that many don't even know they have.

Request an Inspection Before Moving Out

One of the most underused tenant rights in Oregon is requesting an initial move-out inspection. ORS 90.300(7) gives tenants the right to request this inspection to identify any issues the landlord might deduct for.

Here's why this matters: During that inspection, you can fix minor problems yourself—patch nail holes, deep clean that stubborn stain—before the landlord documents them. I've seen this single step save tenants hundreds of dollars.

Take photos and videos during both your move-in and move-out inspections. Modern smartphones timestamp images, which creates solid evidence if you end up in small claims court.

Understanding Normal Wear and Tear

This is where most security deposit disputes happen. Oregon law says landlords cannot deduct for "normal wear and tear" but what does that actually mean?

The Oregon Department of Consumer and Business Services has clarified that normal wear and tear includes deterioration that happens from ordinary use over time not from negligence or abuse.

Examples of normal wear and tear (NOT deductible):

• Carpet flattening or slight fading in high-traffic areas
• Minor scuffs on the walls from furniture
• Faded paint after several years
• Small nail holes from hanging pictures
• Worn cabinet hardware
• Loose caulking around tubs after years of use

Examples of damage beyond normal wear (deductible):

• Wine stains covering large carpet sections
• Holes punched in walls
• Broken windows or doors
• Cigarette burns on countertops
• Pet damage to flooring
• Mold growth from unreported water leaks

The age and condition of items matters too. If carpet was already 8 years old when you moved in and industry standards say carpet lasts 7-10 years, you shouldn't pay to replace it—that's normal wear and tear at the end of its useful life.

Getting Your Deposit Back: A Step-by-Step Approach

Through Hemlane's platform, we've facilitated thousands of deposit returns. Here's what actually works:

Before you move in:

• Document everything with photos and video
• Note any existing damage on your move-in checklist
• Keep your written receipt in a safe place

During your tenancy:

• Report maintenance issues promptly (in writing)
• Follow your lease terms
• Keep the property reasonably maintained

Before moving out:

• Review your lease for notice requirements
• Give proper written notice (usually 30 days for month-to-month tenancies)
• Request that initial inspection
• Fix minor issues yourself
• Deep clean the unit
• Remove all belongings and trash

At move-out:

• Do a final walkthrough if possible
• Take comprehensive photos and video
• Provide your forwarding address in writing
• Keep copies of everything

After moving out:

• Count the days (remember, landlords have 31)
• Review any deduction statement carefully
• Compare it against your documentation

Pet Deposits: What You Should Know

Oregon allows landlords to charge pet deposits, but here's the catch: these are treated exactly like regular security deposits under state law. That means:

• Pet deposits count toward the one-month (or two-month for furnished) rent limit
• They must be held in trust
• They're refundable except for actual pet damage
• Normal pet wear and tear doesn't justify keeping the deposit

I've seen landlords advertise "non-refundable pet fees"—these violate Oregon law. Any pet-related charge that's truly non-refundable must be clearly labeled as a "pet rent" (monthly fee) rather than a deposit.

When Landlords Don't Follow the Rules

If your landlord doesn't return your deposit or provide an itemized statement within 31 days, Oregon law provides real teeth: ORS 90.300(12) allows you to sue for up to twice the deposit amount.

Let's say you paid a $1,200 deposit and your landlord goes radio silent past day 31. You could potentially recover $2,400 in small claims court—the original deposit plus an equal amount in penalties.

Oregon's small claims court handles disputes up to $10,000 and does not require an attorney though you can hire one if you want. The filing fee typically runs around $50-100 depending on the county.

Before You Sue

Try communicating first. Send a certified letter explaining that the deadline has passed and you expect your full deposit returned within 7 days or you will file in small claims court. Sometimes landlords just forget or have an emergency, give them a chance to make it right.

Keep every piece of paper like your lease, receipts, photos, emails, text messages, move-out notice and forwarding address confirmation. These become your evidence.

What Landlords Need to Know

Running rental properties comes with real responsibilities. Here's how to protect yourself while following Oregon law:

Documentation Is Your Friend

Take detailed photos and video at move-in and move-out. Use a timestamp app or camera. At Hemlane, we've seen cases where proper documentation saved landlords from bogus damage claims—and other cases where lack of documentation cost them when they had legitimate damage to deduct for.

Be Specific With Deductions

"General cleaning" isn't specific enough under Oregon law. Your deduction statement needs actual detail:

Too vague: "Cleaning - $200."
Specific enough: "Cleaned burnt food residue from oven interior and scrubbed grease buildup from range hood and surrounding wall tiles - 4 hours at $50/hour - $200"

Include receipts when possible. Professional cleaning bills, repair invoices and replacement costs all strengthen your position.

Understand Depreciation

You can't charge a tenant the full cost of replacing something that was already partially worn out. If carpet had 5 years of life left when the tenant moved in, and they ruined it after 2 years, you can only charge for the 2 years they cost you, not the full replacement.

The Internal Revenue Service provides depreciation schedules that many courts reference: carpet typically depreciates over 5-7 years, appliances over 10-15 years, paint over 2-3 years.

Consider Professional Property Management

Services like Hemlane help landlords stay compliant with Oregon's complex rules while protecting their investment. We've seen too many well-meaning landlords lose in court simply because they didn't know the technical requirements.

Regional Variations: Portland and Other Cities

While ORS 90.300 applies statewide, some Oregon cities have additional rules. Portland, for instance, has its own tenant protections through the Portland Housing Bureau that can affect security deposits and move-in costs.

Always check if your city or county has additional requirements. The Community Alliance of Tenants maintains updated resources on local ordinances across Oregon.

Common Mistakes to Avoid

For Tenants:

• Not documenting pre-existing damage at move-in
• Failing to provide a forwarding address
• Missing your lease's notice requirements
• Not requesting that initial inspection
• Throwing away receipts and documentation

For Landlords:

• Missing the 31-day deadline
• Charging for normal wear and tear
• Providing vague deduction explanations
• Not keeping deposits in a separate account
• Ignoring depreciation on older items
• Charging non-refundable fees that violate state law

Getting Help

If you are struggling with a security deposit dispute, several resources can help:

• Oregon State Bar Legal Services: Free legal clinics and referrals
• Community Alliance of Tenants: Tenant advocacy and education
• Oregon Law Center: Free legal aid for low-income Oregonians
• Your local Legal Aid office
• Small claims court assistance programs in your county

The Bottom Line

Oregon's security deposit laws aim to be fair to both landlords and tenants. Landlords get financial protection for their property. Tenants get their money back when they have met their obligations.

The key is documentation, communication and following the rules. Whether you are managing properties through platforms like Hemlane or handling everything yourself, understanding these laws protects everyone involved.

Most security deposit disputes come down to one thing: misunderstandings that proper documentation could have prevented. Take those photos. Send that certified mail. Meet those deadlines. The few minutes you invest upfront can save you thousands in headaches later.

This guide provides educational information about Oregon security deposit laws based on current statutes and regulations. It is not legal advice. For specific situations, consult with an attorney licensed in Oregon or contact the Oregon State Bar.

Sources:

• Oregon Revised Statutes § 90.300
• Oregon Legislature
• Oregon State Bar
• Oregon Courts - Small Claims Information
• Oregon Real Estate Agency
• Community Alliance of Tenants