Breaking a Lease in Oregon

Oregon Security Deposit Law — Limits & Deadlines (2026)

By Oleg Kachko · Updated June 10, 2026

✓ Law Verified June 2026

This guide explains oregon security deposit law in plain English — how much your landlord can charge, when they must return it, what they can and cannot deduct, and what to do if they do not give it back. All figures are from Oregon law, verified as of June 2026.

Oregon Security Deposit Rules at a Glance

Maximum deposit No state limit — Oregon does not cap the amount a landlord may charge as a security deposit. Landlords may request any amount, but the total must be disclosed in the rental agreement. Tenants should compare deposit amounts when shopping for rentals, as there is no statutory maximum in months of rent or dollar amount.
Return deadline 31
Itemized deductions required YES — under ORS 90.300, the landlord must provide a written, itemized accounting of all deductions within 31 days after the tenancy ends and the tenant delivers possession. The statement must clearly describe each charge and the reason for it. The accounting and any remaining deposit must be sent by first-class mail or personally delivered to the tenant’s last known address. If the landlord fails to provide this written accounting within 31 days, the tenant may recover up to twice the amount withheld.
Interest on deposit required NO — Oregon state law does not require landlords to hold security deposits in interest-bearing accounts or pay interest to tenants. However, tenants in Portland should note that Portland city code (30.01.087) requires landlords to deposit funds into a segregated account within two weeks and pay any interest earned (minus up to 5 percent for administrative costs) to the tenant.
Penalty for late/bad-faith return Under ORS 90.300(12), if a landlord fails to return the deposit and provide a written itemized accounting within 31 days, or wrongfully withholds any portion of the deposit in bad faith, the tenant may recover up to twice the amount wrongfully withheld. Many tenants can also recover court costs if they prevail. This penalty applies both to late returns and to bad-faith withholding of funds the tenant is owed.

Move-in/move-out walkthrough: Oregon state law does not strictly require a move-in or move-out walkthrough inspection, but landlords are encouraged to offer one. Under ORS 90.310, the landlord should provide the tenant an opportunity to inspect the unit before the tenancy ends so the tenant may address any issues and preserve more of the deposit.

Portland city code requires landlords to make reasonable efforts to schedule a pre-move-in walkthrough and complete a written condition report signed by both parties. Tenants throughout Oregon should request a walkthrough in writing and document the unit’s condition with photos at both move-in and move-out.

Separate deposit account: NO — Oregon state law does not require landlords to hold security deposits in a separate or dedicated account. Landlords may hold funds in any reasonable manner. Exception: Portland city code (30.01.087) requires landlords to deposit tenant funds into a financial institution account segregated from personal and business operating accounts within two weeks of receipt.

What Your Landlord Can and Cannot Deduct in Oregon

Under ORS 90.300(7), a landlord may deduct only amounts reasonably necessary to: (1) remedy tenant defaults under the rental agreement, including unpaid rent; and (2) repair damages to the premises caused by the tenant, not including ordinary wear and tear.

Cleaning costs may be deducted only if the tenant left the unit in a condition beyond ordinary wear and tear. Landlords may not charge for routine turnover cleaning or repainting that would be needed regardless of the tenant’s care.

Normal wear and tear vs damage: Oregon does not provide a statutory definition of ordinary wear and tear, but ORS 90.300(7)(a)(B) prohibits landlords from charging tenants for deterioration resulting from ordinary use over time. Generally, ordinary wear and tear includes minor scuff marks on walls, small nail holes, faded paint, slightly worn carpet from foot traffic, and loose door handles.

Damage — such as large holes in walls, stains or burns in carpet, broken fixtures, or pet-related destruction — goes beyond ordinary wear and tear and may be deducted. What counts as ordinary wear and tear depends on the length of the tenancy and the age of the materials.

How to Get Your Deposit Back in Oregon

Oregon tenants who believe their security deposit was wrongfully withheld may take these steps: (1) Send a written demand letter to the landlord by first-class mail stating the amount owed, citing the 31-day deadline under ORS 90.300, and giving the landlord at least 10 days to respond.

Keep a copy of the letter. (2) If the landlord does not respond or refuses to pay, the tenant may file a claim in Oregon small claims court for amounts up to 10000.

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(3) In small claims court, the tenant may seek the full deposit owed plus up to twice the amount wrongfully withheld under ORS 90.300(12). (4) Free templates and guidance are available from Oregon Law Help (oregonlawhelp.org). (5) Tenants may also contact the Oregon State Bar’s Lawyer Referral Service or local legal aid for assistance.

Other Oregon deposit rules: (1) Oregon’s HB 3521, effective January 1, 2026, strengthened protections for holding deposits (pre-lease deposits): if a prospective tenant withdraws due to severe habitability defects such as mold, broken plumbing, pest infestations, leaky roof, or nonworking locks, the landlord must refund the holding deposit, and tenants may recover double the deposit plus 150 if bad faith is proven.

(2) Portland has significantly stricter local rules than state law, including mandatory segregated deposit accounts, interest payments to tenants, and required pre-move-in condition reports.

Tenants renting in Portland should review Portland city code 30.01.087 in addition to state law. (3) Under ORS 90.300, prepaid rent is treated differently from a security deposit — landlords may not commingle the two, and prepaid last month’s rent can only be applied to the final month’s rent, not used to cover damages.

(4) If a landlord sells the property, the security deposit obligation transfers to the new owner, and the tenant’s rights under ORS 90.300 continue to apply.

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Official Oregon Sources & Resources

Understanding Oregon Security Deposit Law

Your Oregon security deposit is your money until the landlord proves a lawful deduction. Oregon security deposit law sets clear limits on how much can be charged, what can be deducted, and when the balance must be returned. If your landlord misses the Oregon security deposit return deadline or takes deductions that are not allowed, you may be entitled to penalties.

Document the condition of your unit at move-in and move-out — photos are the best protection for your Oregon security deposit.

This Oregon security deposit guide was last verified against official sources in June 2026. Laws change — verify with your state or a local legal-aid office.

More Oregon Tenant Rights Guides

Disclaimer: This guide is informational only and is not legal advice. Landlord-tenant laws change and vary by city and county within a state. Verify current rules with your state, your local court, or a free legal-aid office before acting. If you are facing eviction, contact a local tenant attorney or legal-aid organization right away.

Renting? Protect your belongings — compare renters insurance at Home Insure Guide. Divorce involving a lease? See Divorce Help Guide. Unsafe housing / toxic mold injury? Some cases qualify — see Mass Tort Info.