Oregon Security Deposit
Return Calculator

Oregon does not impose a statutory limit on the amount a landlord can collect as a security deposit. However, the state does regulate the return process: landlords must return deposits within 31 days and provide an itemized list of any deductions.

The state does not require landlords to pay interest on deposits. The governing statute is Or.

Rev. Stat.

§ 90.300.

While the lack of a deposit cap gives Oregon landlords more flexibility in setting deposit amounts, tenants still have important protections during the return process. Landlords who fail to return deposits on time or who make improper deductions face penalties: tenant may recover double the deposit wrongfully withheld plus actual damages.

The absence of a deposit limit makes it especially important for Oregon tenants to understand what constitutes a lawful deduction and how to dispute excessive charges.

Oregon's Security Deposit law (ORS § 90.300) allows no statutory limit on deposits, but the 2023 statewide rent stabilization law (ORS § 90.600) limits rent increases and indirectly affects deposit practices in covered units. Portland's Renter Services Office provides tenant education and mediation for deposit disputes.

Portland requires interest on deposits held by landlords with 5+ units in the city limits. Oregon's pre-move-out inspection requirement (ORS § 90.300(7)) gives tenants the right to request an inspection before move-out to identify remediable deficiencies.

Oregon's small claims limit is $10,000. Oregon courts have been consistent that routine carpet cleaning is not automatically deductible — only cleaning beyond what normal occupancy produces.

Service animals are exempt from pet deposits under ORS § 90.300(14) and federal law.

Oregon is one of the states that does not impose a statutory cap on security deposit amounts. Landlords have discretion to set the deposit at whatever amount they choose, though market forces and competition for tenants typically keep deposits in the range of one to two months' rent.

Unlike the roughly half of states that limit deposits to a specific number of months' rent, Oregon leaves this to negotiation between landlord and tenant.

Even without a statutory cap, Oregon tenants can negotiate deposit amounts. A strong rental history, good credit score, or willingness to sign a longer lease can provide leverage for a lower deposit.

Tenants should always get the deposit amount in writing as part of the lease agreement and request a receipt showing the exact amount paid and the date of payment.

Oregon tenants should be aware that security deposits are separate from other move-in costs. Application fees, pet fees, cleaning deposits, and last month's rent are distinct charges that may or may not be subject to separate regulations.

Read your lease carefully to understand exactly what each payment covers and whether it is reimbursable.

Oregon law requires landlords to return security deposits within 31 days after the tenant vacates the rental unit. This deadline is strict — Oregon gives landlords a relatively generous window compared to many states, where 30 days is more typical.

The clock typically starts when the tenant surrenders possession of the unit and returns all keys.

Along with the deposit (or any remaining balance after deductions), the landlord must provide an itemized written statement listing each deduction. Oregon law specifically requires this itemization, and failure to provide it within the statutory window can result in the landlord forfeiting the right to retain any portion of the deposit.

Each deduction must be documented — vague entries like "cleaning" or "damages" without specifics are generally insufficient.

To protect your rights as a tenant in Oregon, always provide your landlord with a forwarding address in writing when you move out. Some states require the forwarding address before the return deadline begins to run.

Take date-stamped photos or video of the unit at both move-in and move-out to document the property's condition. If the landlord fails to return the deposit or provide an itemization within 31 days, send a written demand letter via certified mail before pursuing legal action.

Under Oregon law, landlords may deduct from the security deposit for the following: unpaid rent, damage beyond normal wear, cleaning per rental agreement, defaults per rental agreement. These deductions must be reasonable, documented, and itemized in the statement provided to the tenant.

Landlords cannot deduct for normal wear and tear — this is a critical distinction that is frequently disputed between landlords and tenants.

Normal wear and tear in Oregon generally includes minor scuffs on walls, worn carpet from everyday foot traffic, small nail holes from hanging pictures, faded paint due to sunlight exposure, and minor door or window wear. Damage beyond normal wear includes large holes in walls, stained or burned carpet, broken windows, unauthorized modifications, pet damage, and excessive filth requiring professional cleaning.

The line between wear and damage is not always clear, which is why move-in and move-out condition documentation is critical.

Oregon is one of only 6 states that require or strongly encourage a walk-through inspection before the tenant moves out. This inspection gives the tenant an opportunity to address any issues the landlord identifies before the final move-out, potentially reducing or eliminating deductions from the deposit.

If your landlord offers a walk-through, take advantage of it — and bring a checklist and camera to document the unit's condition during the inspection.

Oregon does not require landlords to pay interest on security deposits. No interest requirement; Portland requires interest for deposits held by landlords with 5+ units.

This places Oregon in the majority — only 14 of 51 jurisdictions require deposit interest. While tenants do not earn interest on their deposits in Oregon, they still have full rights to the return of the principal amount, less any lawful deductions.

Even without an interest requirement, Oregon tenants should be aware that their deposit money is being held for the duration of the lease. This represents a real opportunity cost, particularly for larger deposits.

When negotiating a lease in Oregon, consider whether the deposit amount is reasonable relative to the monthly rent and whether any of the upfront costs can be reduced.

Oregon does not require landlords to hold security deposits in a separate or escrow account. This means a landlord may commingle the deposit with personal or business funds, which carries some risk for tenants if the landlord faces financial difficulties.

Approximately 16 jurisdictions require separate accounts for deposit funds. Oregon tenants may want to ask their landlord where the deposit is being held, even though disclosure is not always required by law.

The penalties for security deposit violations in Oregon are significant. Under Or.

Rev. Stat.

§ 90.300: tenant may recover double the deposit wrongfully withheld plus actual damages. These penalties apply when a landlord fails to return the deposit within the statutory deadline, makes improper deductions, or fails to provide the required itemized statement.

Oregon's double-damages provision means that a landlord who wrongfully withholds a $2,000 security deposit could owe $4,000 to the tenant, plus any attorney fees and court costs awarded. This penalty applies when the landlord's withholding is found to be willful or in bad faith — an honest mistake in calculating deductions may not trigger the penalty multiplier, but failing to return the deposit at all almost certainly will.

To pursue a security deposit claim in Oregon, tenants typically file in small claims court, which handles disputes up to a specified dollar amount without requiring an attorney. The process involves filing a complaint, paying a small filing fee, and presenting evidence at a hearing.

Key evidence includes the lease, proof of deposit payment, move-in and move-out photos, the landlord's itemized deductions statement (or lack thereof), and any correspondence about the deposit. Many Oregon courts also offer mediation services that can resolve deposit disputes faster than a full hearing.

Security deposit disputes are often part of a broader landlord-tenant conflict. If the dispute escalates to eviction, the Oregon Eviction Timeline Calculator shows notice periods and court timelines by cause of action.

For landlords buying rental property and evaluating upfront costs, the Oregon Closing Cost Estimator provides a detailed breakdown of purchase transaction fees. And for landlords structuring ownership in an LLC, the Oregon LLC Formation Cost Calculator covers state filing fees and registered agent costs.

If your security deposit dispute has become a larger landlord-tenant legal matter, find a Oregon tenant rights attorney.