Oregon: Security Deposit Return Deadlines & Deductions

verified against the statute 2026-07-06 8 statute sources

The short answer

Oregon gives a landlord 31 days after the tenancy ends and the tenant returns possession to send a written accounting of any deductions and return what's left of the deposit. Oregon sets no cap on how much a landlord can charge as a deposit, and doesn't require the landlord to pay interest on it or hold it in a separate account. A landlord can deduct for unpaid rent or other lease defaults and for damage beyond ordinary wear and tear. Missing the 31-day accounting deadline doubles whatever was withheld without one, and anything withheld in bad faith is doubled separately.

Ask Ezel about your situation

This is the general rule in Oregon. Ezel applies current Oregon law to your specific facts and answers with citations to the statutes.

Governing lawORS 90.300 (Oregon Residential Landlord and Tenant Act)
Deadline to return the deposit31 days after BOTH the tenancy terminates and the tenant delivers possession — whichever of the two happens last starts the clock
Itemized statement required?Yes — a written accounting stating specifically the basis of any amount claimed, due within the same 31 days, delivered in person, by first-class mail, or by email if the tenant agreed to electronic delivery
What can be deductedUnpaid rent or other rental-agreement defaults, and the cost to repair tenant-caused damage, not including ordinary wear and tear. The landlord doesn't have to actually perform the repair to deduct for it, and may charge a reasonable hourly rate for the landlord's own labor
Maximum deposit amountNo cap on the initial amount. A landlord generally can't require a new or increased deposit during the first year of a tenancy, except for an added deposit the parties later agree to (for example, to allow a pet)
Interest on the deposit?No — the statute doesn't require or mention interest on a held deposit
Penalty for a late/bad-faith withholdingTwo separate double-damages triggers: missing the 31-day written-accounting deadline entitles the tenant to twice whatever was withheld without an accounting, no bad-faith showing needed; separately, any amount withheld in bad faith is doubled too
Separate account or bond required?No — the statute doesn't require a separate account, an interest-bearing account, or a bond

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Requirements one by one

Governing law

Oregon's entire deposit scheme lives in one section of the state's
landlord-tenant act: ORS 90.300.

Deadline to return the deposit

The 31-day clock doesn't start at a single, simple trigger — it starts once
BOTH the tenancy has ended and you've actually handed back possession of the
unit. "In order to claim all or part of any prepaid rent or security
deposit, within 31 days after the tenancy terminates and the tenant delivers
possession the landlord shall give to the tenant a written accounting that
states specifically the basis or bases of the claim." (§ 90.300(12)). The
same 31-day window governs the actual return of any undisputed money: "The
landlord shall return to the tenant the security deposit... not later than
31 days after the tenancy terminates and the tenant delivers possession."
(§ 90.300(13)).

Itemized statement required?

Yes. The landlord must give you a written accounting stating specifically
the basis of any amount claimed, within the same 31 days. It can be
delivered "by personal delivery or by first class mail or, if allowed under
ORS 90.155 (1)(d), by electronic mail." (§ 90.300(14)) — that subsection is
about how the notice is delivered, not about what it must contain beyond the
basis-of-claim requirement in (12).

What can be deducted

A landlord may claim only what's "reasonably necessary" for two purposes:
covering your defaults under the lease, including unpaid rent, and repairing
damage you caused — "not including ordinary wear and tear." (§ 90.300(7)(a)).
The landlord doesn't actually have to complete the repair before deducting
for its cost, and can charge a reasonable hourly rate for doing the work
personally rather than hiring it out (§ 90.300(7)(b)).

Maximum deposit amount

None. Oregon's statute sets no dollar or rent-multiple limit on the deposit
a landlord can require. The one real restriction is about RAISING an
existing deposit, not the size of the original one: "a landlord may not
change the rental agreement to require the tenant to pay a new or increased
security deposit during the first year after the tenancy has begun," except
where the tenant and landlord later agree to a change — for example, to
allow a pet (§ 90.300(5)(a)).

Interest on the deposit?

No. Nothing in § 90.300 requires a landlord to pay interest on a held
deposit, at any rate or under any condition.

Penalty for a late/bad-faith withholding

Oregon runs two separate doubling tracks off the same subsection: "If the
landlord fails to comply with subsection (13) of this section or if the
landlord in bad faith fails to return all or any portion of any prepaid rent
or security deposit... the tenant may recover the money due in an amount
equal to twice the amount: (a) Withheld without a written accounting... or
(b) Withheld in bad faith." (§ 90.300(16)). In practice, that means simply
missing the 31-day accounting deadline doubles whatever wasn't accounted
for — no proof the landlord acted in bad faith is required for that prong —
and a separate, additional doubling applies to any amount actually withheld
in bad faith.

Separate account or bond required?

No. Oregon's statute doesn't require a landlord to segregate a deposit into
its own account, keep it interest-bearing, or post a bond in place of
holding it directly.

What trips people up

A landlord's own demand-letter template can get the cap wrong — badly.
Oregon genuinely has no cap on the deposit amount, but this is one of the
more commonly mis-stated rules for this state: one commercial template
invents a "1.5x rent with no pets, 2x with pets" cap and attributes it to
§ 90.300(4) — but the real (4) is about something else entirely, a landlord's
duty not to charge a pet deposit for a disability service or companion
animal. A different source invents a different, also-wrong "1 month
unfurnished, 2 months furnished" cap. Neither figure comes from the actual
statute; there is no cap at all.

The 31-day clock needs both a termination AND a handover of possession.
If your lease ends but you haven't actually returned the keys or vacated,
the clock hasn't started yet — and the reverse is also true if you leave
before the tenancy is formally terminated.

Missing the deadline and acting in bad faith are two different things
with two different remedies.
A landlord who's simply late with the
paperwork faces automatic doubling of the unaccounted-for amount. A
landlord who's also acting in bad faith — inventing damage, ignoring your
demand — can face doubling on that separate basis too, which is a stronger
claim than a late-paperwork case alone.

Common questions

My landlord sent the accounting on time but I think the deductions are
bogus — do I still get double damages?
Not automatically. The
no-bad-faith-required doubling in § 90.300(16)(a) applies to amounts
withheld WITHOUT a written accounting. If the landlord did send an
accounting but you dispute the deductions, your stronger path is arguing
the withholding itself was in bad faith under (16)(b), or simply disputing
whether the deduction was for actual damage beyond ordinary wear and tear.

Can my landlord require a bigger deposit if I get a pet partway through
my lease?
Yes, if you and the landlord agree to that change — the
first-year restriction on raising a deposit doesn't block an increase tied
to a mutually agreed modification like adding a pet.

Does Oregon require my landlord to keep my deposit in a separate bank
account?
No. Some other states do; Oregon's statute doesn't.

Statutes and sources

  • ORS 90.300(4) — pet-deposit exemption for a disability service or companion animal (not a cap).
    https://oregon.public.law/statutes/ors_90.300 (accessed 2026-07-06)
  • ORS 90.300(5)(a) — restriction on raising an existing deposit in the first year.
    https://oregon.public.law/statutes/ors_90.300 (accessed 2026-07-06)
  • ORS 90.300(7)(a) — permitted deductions (defaults/unpaid rent; damage excluding wear and tear).
    https://oregon.public.law/statutes/ors_90.300 (accessed 2026-07-06)
  • ORS 90.300(7)(b) — no repair-completion requirement; reasonable hourly labor rate.
    https://oregon.public.law/statutes/ors_90.300 (accessed 2026-07-06)
  • ORS 90.300(12) — 31-day written-accounting requirement.
    https://oregon.public.law/statutes/ors_90.300 (accessed 2026-07-06)
  • ORS 90.300(13) — 31-day return deadline.
    https://oregon.public.law/statutes/ors_90.300 (accessed 2026-07-06)
  • ORS 90.300(14) — delivery method for the accounting/return.
    https://oregon.public.law/statutes/ors_90.300 (accessed 2026-07-06)
  • ORS 90.300(16) — double-damages penalty (missed accounting; bad faith).
    https://oregon.public.law/statutes/ors_90.300 (accessed 2026-07-06)

Source links

Every statute quoted above, linked, with the date we checked it.

ORS 90.300(4) · accessed 2026-07-06
ORS 90.300(5)(a) · accessed 2026-07-06
ORS 90.300(7)(a) · accessed 2026-07-06
ORS 90.300(7)(b) · accessed 2026-07-06
ORS 90.300(12) · accessed 2026-07-06
ORS 90.300(13) · accessed 2026-07-06
ORS 90.300(14) · accessed 2026-07-06
ORS 90.300(16) · accessed 2026-07-06
This page is general legal information about your state's security deposit rules under STATE law, not legal advice about your specific deposit or lease. It does not cover city or county rules that may add further deposit requirements (some cities require additional notice, a higher interest rate, or a shorter deadline than the state floor) — check local law separately. Whether a deduction was proper, whether a deadline was missed, and what penalty applies often depend on case-specific facts this page cannot resolve for you. Verified against the official statute text on the date shown; confirm current law or consult a licensed attorney in the state before relying on it.

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