Oregon Late Rent Fee Laws: Limits, Grace Periods, and Penalties
What Oregon landlords can charge when rent is late, how long they must wait, and what an illegal fee costs. Last reviewed 2026-08-16.
How much can a landlord charge in Oregon?
ORS 90.260 gives landlords exactly three permitted structures, and the written rental agreement must pick one. Option one is a reasonable flat amount charged once per rental period, with "reasonable" measured by what landlords customarily charge in that market. Option two is a reasonable per-day charge beginning on the fifth day, which may not exceed 6% per day of the flat amount the landlord could have charged under option one. Option three is 5% of the periodic rent, charged once for each succeeding five-day period the rent stays delinquent; anything outside these three is not a lawful late charge.
How late does rent have to be?
A landlord may impose a late charge only if the rent payment is not received by the fourth day of the rental period for which it is payable. Per-day charges and the 5%-per-five-days charge cannot begin accruing until the fifth day of that period, and they stop at the end of the period.
Does the fee have to be in the lease?
Yes. ORS 90.260(1)(b) requires a written rental agreement specifying the tenant's obligation to pay a late charge, the type and amount of the charge, and the date rent and late charges are due. In a periodic tenancy the landlord may change the type or amount only after 30 days' written notice.
What happens if you charge too much?
ORS 90.302(2)(a) permits a late charge only "as provided in ORS 90.260," and ORS 90.302(7) lets a tenant charged a fee in violation of that section recover twice their actual damages or $300, whichever is greater. The unlawful charge itself is also uncollectible.
Returned payment fees
ORS 90.302(2)(b) allows a dishonored-check fee capped at the amount set by ORS 30.701(5), which is $35, plus whatever the bank charged the landlord to process the returned item. The fee must be disclosed in the rental agreement.
Recent changes to the law
ORS 90.260 was not amended in 2024 through 2026. The four-day trigger, the three permitted fee structures, and the 6% per-day ceiling on the daily option are unchanged.
What Oregon landlords get wrong
Two traps catch small Oregon landlords. First, ORS 90.260(3) forbids deducting a previously imposed late charge from a current or later rent payment, because that would manufacture a fresh delinquency and a new fee. Second, nonpayment of a late charge alone is never grounds for a nonpayment-of-rent termination; it is only grounds for a for-cause termination. Note also that since HB 2001 took effect in 2023, the nonpayment termination notice is 10 days, or 13 days if mailed, replacing the old 72-hour and 144-hour notices, so an unpaid late fee sits on the ledger much longer before any court process begins.
The law itself
Frequently asked questions
How much can an Oregon landlord charge as a late fee?
ORS 90.260 allows one of three structures, chosen in the written rental agreement: a reasonable flat fee charged once per rental period; a reasonable daily fee that cannot exceed 6% of that flat amount per day; or 5% of the periodic rent charged once for each five-day period the rent stays late. Nothing outside those three options is lawful.
When can an Oregon landlord start charging a late fee?
Only if rent has not been received by the fourth day of the rental period it covers. For rent due on the first, that means no fee until the fourth day has passed. The daily option and the 5%-per-five-days option cannot begin accruing until the fifth day of the period, and they stop at the end of that rental period.
Can an Oregon landlord evict me for unpaid late fees?
Not through a nonpayment-of-rent eviction. ORS 90.260 states that failing to pay a late charge alone is not grounds for terminating a tenancy for nonpayment of rent, although it can support a for-cause termination. Your landlord also cannot subtract an old late charge from your current rent payment to make that payment look short.
What can I do if my Oregon landlord charges an illegal late fee?
ORS 90.302 permits only a late charge that follows ORS 90.260, and a tenant charged a fee in violation of that section may recover twice their actual damages or $300, whichever is greater. The unlawful fee itself is not collectible. Raise it as a defense if the landlord sues, or bring a claim in small claims court.
Keep reading
Charging the wrong late fee can cost you more than the rent.
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