Oregon Security Deposit Laws: Deductions, 31-Day Return, and Penalties

Oregon security deposit laws, set out in ORS 90.300, don’t cap how much a landlord can charge, but they tightly control what a landlord can deduct and require the deposit, or a written itemized accounting of what was kept, to reach the tenant within 31 days after move-out. Miss that deadline or keep money in bad faith, and the tenant can recover twice the amount wrongfully withheld.¹

How Much a Landlord Can Charge

Oregon sets no maximum. At lease signing, the landlord can ask for whatever amount the market supports. The restrictions kick in once you’re a tenant.

During the first year of the tenancy, a landlord cannot require a new or increased deposit unless both sides agree in writing to modify the lease for a specific reason, like adding a pet. That exception does not reach service animals or companion animals needed as a reasonable accommodation under fair housing laws.²

After the first year, the landlord can raise the deposit, but must give you at least three months to pay the increase.² A demand for the full new amount on day one of year two does not comply with the statute.

Deposits, Fees, and Screening Charges Are Not the Same Thing

A security deposit is refundable money held to secure performance of the lease. A fee is nonrefundable by definition.¹ Everything in ORS 90.300, including the accounting and return rules, applies to deposits only. If a landlord calls a charge a “fee,” you won’t see it again.

Application screening charges live under a separate statute, ORS 90.295. The landlord can only collect enough to cover the actual cost of running background and credit checks, must give you a receipt, and cannot charge an applicant more than once within any 60-day period, no matter how many units that applicant applies for.³ Screening charges are not deposits and don’t follow deposit return rules.

What a Landlord Can Deduct

Two categories, and only two: amounts reasonably necessary to cover the tenant’s defaults under the lease (most often unpaid rent), and the cost of repairing damage the tenant caused beyond ordinary wear and tear.¹

Ordinary wear and tear is the deterioration that comes from simply living somewhere: minor wall scuffs, slight carpet fading, small nail holes. Damage is more significant, like a broken window, a hole punched in drywall, or deep burn stains in flooring. Most disputes turn on that line, and when a case reaches a judge it comes down to a judgment call on the specific facts.

Carpet Cleaning

Carpet cleaning has its own test, and it is where landlords most often overreach. A landlord can deduct carpet cleaning costs only if all three of the following are true:

The cleaning uses a machine designed for carpet cleaning or shampooing, not just a vacuum.
The carpet was professionally cleaned or replaced after the previous tenant and before you moved in.
The written rental agreement specifically says the landlord may deduct carpet cleaning costs regardless of whether the tenant cleans the carpet before moving out.

If any one piece is missing, the deduction is invalid.¹ A landlord who skipped carpet cleaning between tenants cannot charge you to clean it on the way out.

Labor the Landlord Does Personally

When the landlord does the cleaning or repair work rather than hiring it out, the hourly rate charged must be reasonable for the local market.² The landlord doesn’t have to finish the repair before claiming against the deposit, but the amount still has to reflect a reasonable cost. Seventy-five dollars an hour to patch a nail hole won’t survive scrutiny.

The 31-Day Return Deadline

After the tenancy ends and you’ve handed back possession, the landlord has 31 days to either return the full deposit or deliver a written accounting that explains every dollar withheld. The accounting has to state specifically what each claim is for.¹ A single line reading “cleaning and repairs — $400” is not enough. It needs to be itemized.

Delivery has to be by personal delivery, first class mail, or email if the parties previously agreed to electronic delivery under ORS 90.155.² The clock starts on the day the tenancy terminates and you deliver possession. Hand back the keys on June 1, and the landlord has until July 2 to get the refund or the accounting to you.

Prepaid Rent and Last Month’s Rent

Prepaid rent is treated separately from a security deposit. A landlord can only pull from prepaid rent to cover unpaid rent, never to cover damage.¹ When the 31-day accounting goes out, the deposit accounting and the prepaid rent accounting have to be stated separately. They cannot be lumped together.

A last month’s rent deposit is legally a security deposit under ORS 90.300, but with a special application rule: once either party gives proper notice of termination, the landlord has to apply that money to the final month’s rent. You cannot direct it to a different month unless the landlord agrees. Anything left after it covers the last month goes through the normal 31-day accounting and return process.¹

One boundary worth knowing: Oregon does not require landlords to pay interest on deposits or prepaid rent. Your claim to the money does, however, take priority over the landlord’s other creditors, including a bankruptcy trustee.²

Double Damages for Wrongful Withholding

Under ORS 90.300(16), a tenant can recover twice the amount wrongfully withheld in two situations:

The landlord kept part or all of the deposit without delivering the required written accounting within 31 days.
The landlord delivered an accounting but kept money in bad faith, like charging for repairs that were never made or deducting for ordinary wear and tear.

The doubling applies to the wrongful portion, not the whole deposit.¹ Say a landlord legitimately kept $300 for unpaid rent and wrongfully kept another $500 for bogus cleaning charges. The tenant can recover $500 (the wrongfully kept amount) plus another $500 (the doubling), for $1,000 on top of whatever was already properly refunded.

How to Challenge a Deposit the Landlord Kept

Start with a written demand letter. Spell out exactly what you believe was wrongfully withheld, and cite the 31-day rule and the double damages provision in ORS 90.300. Many landlords settle at this point once the math is clear.

If that doesn’t work, Oregon’s small claims court handles cases up to $10,000, which covers almost every deposit dispute.⁴ Filing fees as of 2026 are $57 for claims of $2,500 or less and $102 for claims above $2,500.⁵ The landlord has to be formally served after you file. A county sheriff typically handles service for around $50, and private process servers are an option too. If the judge finds the landlord violated the accounting or return rules, the judgment can include the double damages. Collecting on a judgment, if the landlord won’t pay voluntarily, can involve garnishing wages or bank accounts.

1
Oregon State Legislature. Oregon Code 90 – Residential Landlord and Tenant
2
Oregon Public Law. Oregon Code 90.300 – Security Deposits; Prepaid Rent
3
Oregon Public Law. Oregon Code 90.295 – Applicant Screening Charges; Screening Criteria
4
Oregon Judicial Department. Small Claims – Going to Court
5
Oregon Judicial Department. 2026 Circuit Court Fee Schedule