Oregon Security Deposit Law: Limits, Deadlines, and Penalties
What Oregon landlords can charge, when deposits must be returned, and what it costs to get it wrong. Last reviewed 2026-08-12.
How much can a landlord charge in Oregon?
Oregon state law does not cap security deposits. Portland is the major exception: its city code (30.01.087) limits deposits to one month's rent (one-half month if last month's rent is also collected) for most rentals inside city limits. A landlord may not raise the deposit during the first year unless both parties agree to a change in the agreement.
Pet deposits are allowed, but a landlord may not charge any deposit or fee for a service animal or assistance/companion animal kept by a tenant with a disability.
When must the deposit be returned?
The landlord must return the deposit or deliver a written accounting within 31 days after the tenancy terminates and the tenant delivers possession. Both conditions must occur — the clock does not start just because the tenant moved their belongings out. Prepaid last month's rent gets its own separate accounting on the same 31-day deadline.
To keep any portion, the landlord must give a written accounting that states specifically the basis of each claim, with separate accountings for the security deposit and any prepaid rent. Labor charges for cleaning or repairs — including the landlord's own labor — must be based on a reasonable hourly rate, and carpet cleaning may be charged only under specific conditions (ORS 90.300(7)(c)).
What happens if a landlord misses the deadline?
If the landlord fails to return the deposit or provide the required accounting within 31 days, or withholds in bad faith, the tenant may recover twice the amount wrongfully withheld under ORS 90.300(16).
Interest and holding requirements
Oregon does not require landlords to pay interest on residential security deposits.
No statutory requirement for a separate or escrow account under state law. Tenants do have a statutory claim to the deposit that takes priority over the landlord's creditors, including a bankruptcy trustee.
Recent changes to the law
HB 3521 (2025), effective January 1, 2026, overhauled holding deposits under ORS 90.297: landlords must give a written disclosure before taking a holding deposit, refund it within 5 days if the rental agreement is not executed (including when the tenant rejects the unit for material habitability defects), and the penalty for failing to refund rose from $150 to an amount equal to the deposit. Core security deposit rules in ORS 90.300 were not changed.
What Oregon landlords get wrong
Oregon's accounting rules are stricter than most states: you must state the specific basis for every claim, charge only a reasonable hourly rate for your own labor, and you may charge for carpet cleaning only if the carpet was cleaned or replaced before the tenancy began and the rental agreement allows it. You cannot deduct for ordinary wear and tear or for conditions the tenant already documented at move-in. Portland landlords face a much stricter local regime — deposit caps, mandatory condition reports, itemized receipts, and interest under city code — so check city rules before relying on state law alone.
The law itself
Frequently asked questions
How long does an Oregon landlord have to return a security deposit?
Thirty-one days after the tenancy ends and the tenant delivers possession — both must happen before the clock starts. Within that window the landlord must return the deposit or send a written accounting stating the specific basis for each amount kept. Missing the deadline exposes the landlord to a claim for twice the amount wrongfully withheld.
Can an Oregon landlord charge for their own labor when deducting from a deposit?
Yes, but only at a reasonable hourly rate, and the written accounting must state the basis of the charge. ORS 90.300 lets landlords charge for cleaning or repairs they perform themselves, but padded or flat 'turnover fees' are not allowed, and nothing may be charged for ordinary wear and tear.
Is there a limit on security deposits in Oregon?
Not under state law — Oregon sets no maximum deposit amount statewide. Portland is the big exception: within city limits, the deposit is generally capped at one month's rent, or half a month if you also collect last month's rent, under Portland City Code 30.01.087. Always check local ordinances before setting deposit amounts.
Can an Oregon landlord deduct carpet cleaning from a security deposit?
Only under specific conditions. The landlord may charge for carpet cleaning performed with specialized equipment if the carpet was cleaned or replaced after the previous tenancy and before the tenant moved in, and the rental agreement provides for it — even without unusual damage. Otherwise, carpet wear from normal use is ordinary wear and tear and cannot be deducted.
Keep reading
Deposit deadlines are easy to miss — until they cost you triple.
Vantric tracks your leases, deposits, and move-out dates in one place, built for landlords with 1–10 units.
Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.