Security Deposit Return Deadlines & Deductions in Oregon

At a glance

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 1.5-times-rent cap without pets and a two-times-rent cap with pets, then attributes it to § 90.300(4). The real subsection (4) is about something else entirely: a landlord may not charge a pet deposit for a disability service or companion animal. A different source invents a one-month-unfurnished, two-months-furnished cap. Neither figure comes from the 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)