Security Deposit Demand Letter — Oregon

SECURITY DEPOSIT DEMAND LETTER

STATE OF OREGON — OREGON RESIDENTIAL LANDLORD AND TENANT ACT

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[__/__/____]

[LANDLORD/PROPERTY MANAGER FULL NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, OR ZIP]

Re: FORMAL DEMAND — RETURN OF SECURITY DEPOSIT UNDER ORS 90.300
Former Tenant: [________________________________]
Rental Property Address: [________________________________]
Lease Commencement Date: [__/__/____]
Tenancy Termination Date: [__/__/____]
Possession Returned to Landlord: [__/__/____]
Total Deposits Held: $[____]

Dear [________________________________]:

This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") regarding your failure to comply with Oregon's security deposit statute, ORS 90.300. Oregon law imposes specific obligations on landlords with mandatory deadlines and significant financial penalties for willful violations. This letter constitutes formal demand for the immediate return of our Client's security deposit, plus all applicable statutory damages, attorney's fees, and costs.

I. OREGON LEGAL FRAMEWORK

A. Oregon Residential Landlord and Tenant Act — Governing Law

Security deposits in Oregon are exclusively governed by the Oregon Residential Landlord and Tenant Act, ORS Chapter 90, with security deposit provisions located primarily at ORS 90.300. Oregon's statute contains several provisions that differ materially from other states and create significant landlord liability for noncompliance.

B. Oregon Deposit Limits — ORS 90.300(4)

Unlike most states, Oregon caps the maximum security deposit amount:

• No pets: Maximum deposit = 1.5 times one month's rent
• Tenant has pets: Maximum deposit = 2 times one month's rent (ORS 90.300(4))

Application to This Tenancy: Monthly rent was $[____]. The maximum permissible deposit was $[____] ([☐ no pets / ☐ with pets]). You collected $[____] as a security deposit.

If the deposit collected exceeded these caps, the excess amount was unlawfully collected and must be returned in full.

C. Oregon's Unique 31-Day Return Deadline — ORS 90.300(13)

Oregon's return deadline is 31 calendar days — not 30 days — from the later of:

1. Termination of the rental agreement; AND
2. Delivery of possession by the tenant (i.e., return of keys or vacation of the unit)

Our Client terminated the tenancy effective [__/__/____] and returned possession (delivered keys) on [__/__/____]. The 31-day deadline therefore expired on [__/__/____]. You have failed to return the deposit or provide a written accounting within this period.

D. Written Accounting and Receipt Requirement — ORS 90.300(14)

Within the 31-day period, the landlord must provide:

1. Return of the deposit, minus any permissible deductions; AND
2. A written, itemized accounting of all amounts withheld, specifying the nature and amount of each deduction

Oregon additionally requires that any deduction for repairs be accompanied by written documentation of the actual cost. A landlord's estimate or unsubstantiated figure is insufficient. ORS 90.300(14)(b) requires the landlord to provide, along with the accounting, "a written description and itemized statement of the deductions, including receipts if requested."

E. Move-In Condition Checklist — ORS 90.315

Under ORS 90.315, a landlord who uses a written rental agreement must provide the tenant with a written checklist or statement specifically describing the condition of the dwelling unit and any furnishings at the commencement of the tenancy. The tenant must be given the opportunity to note any disagreement.

Significance: If the landlord failed to provide this checklist, the landlord may not make deductions for any conditions that arguably existed at move-in. Without a baseline condition record, the landlord bears the evidentiary burden of proving any claimed damage arose during the tenancy.

☐ Landlord provided a written move-in checklist (ORS 90.315 complied with)
☐ Landlord failed to provide any written move-in checklist (ORS 90.315 violated; deductions for pre-existing damage precluded)

F. Permissible Deductions — ORS 90.300(14)

A landlord may only retain amounts from the security deposit for:

• Unpaid rent
• Defaults in rental agreement obligations other than rent
• Costs to restore the premises to their condition at the commencement of the tenancy, exclusive of ordinary wear and tear
• Unpaid utility charges that are the obligation of the tenant under the rental agreement

G. Prohibited Deductions Under Oregon Law

The following deductions are expressly prohibited:

• Ordinary wear and tear — deterioration from normal use over time; ORS 90.300 (tenant not liable)
• Pre-existing conditions — damage that existed before the tenancy (particularly if no move-in checklist was provided)
• Cleaning charges if tenant paid a nonrefundable cleaning fee — ORS 90.302 limits nonrefundable fees; if a separate cleaning fee was collected, no additional cleaning deduction may be taken
• Speculative or unsubstantiated damages — deductions without receipts or documentation
• Amounts exceeding actual repair costs — landlord may not profit from deposit deductions

H. Oregon Statewide Rent Control — ORS 90.323 (Context Note)

Oregon enacted statewide rent stabilization under ORS 90.323 (effective January 1, 2019), limiting annual rent increases to 7% plus the consumer price index. While rent control does not directly govern security deposit returns, practitioners should note:

• If the landlord raised rent in excess of the ORS 90.323 cap during the tenancy, any portion of rent collected in excess of the lawful amount may be subject to a separate claim under ORS 90.255
• Portland and other jurisdictions may have additional local tenant protections, including relocation assistance requirements under Portland City Code § 30.01.085, which may be implicated when a tenancy ends

II. FACTUAL BACKGROUND

A. Tenancy Information

B. Deposit Caps Analysis

☐ No pets in unit: Maximum deposit = $[____] (1.5 × $[____] monthly rent)
☐ Pets in unit: Maximum deposit = $[____] (2 × $[____] monthly rent)
☐ Deposit collected was within cap — $[____] lawfully collected
☐ Deposit collected exceeded cap — $[____] was collected in excess of the ORS 90.300(4) limit and must be returned in full

C. Move-Out Details

D. Condition of Premises at Move-Out

Our Client vacated the premises in the following condition:

☐ Clean and in good repair — left in substantially the same condition as at commencement of tenancy, ordinary wear and tear excepted

☐ Professionally cleaned — our Client retained [________________________________] on [__/__/____] (receipts enclosed)

☐ All personal property removed — no items left behind

☐ Photographic documentation — our Client has date-stamped photographs of the premises at both move-in and move-out

☐ Move-in checklist — our Client has a copy of the signed move-in checklist from ORS 90.315 showing unit condition at commencement

III. LANDLORD'S VIOLATIONS

You have violated Oregon law in one or more of the following ways:

☐ Failure to Return Deposit Within 31 Days (ORS 90.300(13)): You did not return any portion of the security deposit within 31 days of tenancy termination and return of possession. The statutory deadline was [__/__/____].

☐ Failure to Provide Written Itemized Accounting (ORS 90.300(14)): You failed to provide a written, itemized accounting of all amounts withheld within the 31-day statutory period.

☐ Failure to Provide Receipts for Deductions (ORS 90.300(14)(b)): You made deductions without providing written documentation of actual repair costs.

☐ Failure to Provide Move-In Condition Checklist (ORS 90.315): You failed to provide a written checklist at commencement of tenancy describing the condition of the unit. You are therefore precluded from claiming any pre-existing condition as damage.

☐ Deposit Exceeding Statutory Cap (ORS 90.300(4)): You collected a deposit of $[____], which exceeds the maximum permissible amount of $[____] ([1.5×/2×] monthly rent).

☐ Improper Deductions — Ordinary Wear and Tear: You have deducted amounts for conditions constituting ordinary wear and tear, which are not permissible deductions under Oregon law. These include:

☐ Minor scuff marks or wall nicks from normal furniture use
☐ Small nail holes from hanging pictures
☐ Worn carpet in high-traffic areas from normal use
☐ Faded or lightly marked paint from ordinary occupation
☐ Worn fixture finishes from normal daily use
☐ Dust, minor dirt, or cleaning requiring standard turnover effort
☐ Other: [________________________________]

☐ Deductions for Pre-Existing Damage: You have deducted for conditions that existed before our Client's tenancy, as documented by [☐ move-in photos ☐ the absence of a move-in checklist ☐ other evidence: ________________________________].

☐ Cleaning Charge Despite Nonrefundable Fee: You collected a nonrefundable cleaning fee of $[____] under ORS 90.302 and are not permitted to also deduct for cleaning from the security deposit.

☐ Willful Noncompliance: Your failure to return the deposit and/or your improper deductions were willful, entitling our Client to double the amount wrongfully withheld under ORS 90.300(16).

IV. DAMAGES AND REMEDIES UNDER ORS 90.300

A. Deposit Amount Due

B. Double Damages for Willful Violation — ORS 90.300(16)

Under ORS 90.300(16), if a landlord willfully fails to comply with security deposit requirements:

"The tenant may recover from the landlord an amount equal to twice the amount of the security deposit wrongfully withheld."

This is not a penalty in addition to the deposit — it is a multiplier on the amount wrongfully withheld.

C. Attorney's Fees — ORS 90.255

Under ORS 90.255, the prevailing party in any action arising under ORS Chapter 90 may recover reasonable attorney's fees and costs. If we are required to file suit, we will seek attorney's fees.

D. Total Demand

V. EVIDENCE IN OUR POSSESSION

Our Client has preserved the following evidence:

☐ Original lease agreement
☐ Security deposit receipt or cancelled check
☐ Move-in condition checklist (ORS 90.315 document) — or evidence none was provided
☐ Move-out condition inspection report
☐ Photographs of premises at move-in (date-stamped)
☐ Photographs of premises at move-out (date-stamped)
☐ Video walkthrough at move-out
☐ Written notice to vacate with proof of delivery
☐ Proof of forwarding address delivery to landlord
☐ Professional cleaning receipts
☐ Correspondence with landlord regarding the deposit
☐ Landlord's itemized statement (if any)
☐ Utility final bills through move-out
☐ Witness statements regarding condition of premises
☐ Other: [________________________________]

VI. DEMAND

We hereby demand that you, within fourteen (14) calendar days of the date of this letter:

1. Return the full deposit of $[____] (or the full amount owed after permissible deductions); plus

2. Pay double damages of $[____] for willful failure to comply with ORS 90.300; plus

3. Pay attorney's fees of $[____] incurred to date;

4. Total payment: $[____]

Payment must be made by certified check or money order, payable to [TENANT NAME], delivered to:

[LAW FIRM NAME]
[ADDRESS]
[CITY, OR ZIP]
Reference: [________________________________] — Security Deposit

VII. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply with this demand, we are authorized and prepared to:

1. File Suit in Oregon Circuit Court (or Oregon Small Claims Court for claims up to $10,000) for: (a) return of the deposit; (b) double damages under ORS 90.300(16); and (c) attorney's fees and costs under ORS 90.255.

2. Seek Double Damages: Demonstrate to the court that your retention was willful, triggering the ORS 90.300(16) multiplier.

3. Seek Attorney's Fees: Request the court award reasonable attorney's fees pursuant to ORS 90.255. The fee award alone, in the event you lose, will substantially exceed the deposit amount.

4. Report to Oregon Department of Justice: Report your conduct to the Oregon DOJ Consumer Protection Section at 503-378-4732 or www.doj.state.or.us.

5. Report to Local Housing Authority: Report the violation to the applicable local housing authority, including Portland Housing Bureau if the property is in Portland.

6. Enforce Judgment: Upon obtaining judgment, pursue all lawful collection remedies including wage garnishment, bank levy, and judgment lien on real property.

VIII. RESERVATION OF RIGHTS

This letter is written without prejudice to any and all rights and remedies available to our Client under applicable law, including claims under ORS Chapter 90, ORS 646.605 (Oregon Unlawful Trade Practices Act), and federal law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or engaging in subsequent negotiations.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
Oregon State Bar No. [____]
[ADDRESS]
[CITY, OR ZIP]
[TELEPHONE]
[EMAIL]

Attorneys for [TENANT FULL NAME]

ENCLOSURES:
☐ Copy of lease agreement
☐ Security deposit receipt
☐ Move-in condition checklist (or documentation that none was provided)
☐ Move-in and move-out photographs
☐ Professional cleaning receipts
☐ Notice to vacate with proof of delivery
☐ Forwarding address notification
☐ Landlord's itemized statement (if received)
☐ Authorization to represent

cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]

OREGON SECURITY DEPOSIT QUICK REFERENCE

OREGON-SPECIFIC LEGAL NOTES

31-Day Deadline is Unique: Oregon's 31-day return period (ORS 90.300(13)) is one calendar day longer than the 30-day deadline used by many states. This is not a typo — the statute specifically says 31 days.

Deposit Caps Are Mandatory: Oregon's 1.5× / 2× deposit caps under ORS 90.300(4) are enforceable. A landlord who collects a deposit exceeding the cap must refund the excess even if the tenant does not raise the issue at move-in.

Move-In Checklist Creates Evidentiary Baseline: The ORS 90.315 checklist requirement is practically significant. Without it, a landlord cannot establish what condition the unit was in at commencement of the tenancy and will struggle to prove that any claimed damage was caused by the tenant.

Double Damages Require Willfulness: ORS 90.300(16) requires a showing of willful noncompliance. Evidence of willfulness includes: failure to respond to the tenant's deposit demand, fabricated or inflated deductions, and continued noncompliance after receipt of this letter.

Nonrefundable Fee Limits: Under ORS 90.302, landlords may charge nonrefundable fees only for specifically authorized purposes (e.g., a nonrefundable pet fee, application screening fee). If a nonrefundable cleaning fee was charged, no cleaning deduction may be taken from the security deposit.

Portland-Specific Protections: Portland has additional tenant protections under Portland City Code § 30.01.085, including mandatory relocation assistance for certain no-cause terminations. If the tenancy ended in circumstances covered by these provisions, additional claims may exist.

Oregon Statewide Rent Control Context: Oregon's statewide rent stabilization law (ORS 90.323) caps rent increases at 7% plus CPI annually. If the landlord violated ORS 90.323 during the tenancy by raising rent beyond the cap, that is a separate violation of ORS Chapter 90 subject to attorney fees under ORS 90.255.

Small Claims Practice Note: For claims up to $10,000, Oregon Small Claims Court (ORS 46.405) is available. Attorney representation is not permitted in small claims; the tenant must appear personally. Attorney's fees are not recoverable in small claims proceedings.

SOURCES AND REFERENCES

• ORS 90.300 — Security Deposits: https://www.oregonlegislature.gov/bills_laws/ors/ors090.html
• ORS 90.315 — Condition of Premises Checklist: https://www.oregonlegislature.gov/bills_laws/ors/ors090.html
• ORS 90.255 — Attorney Fees: https://www.oregonlegislature.gov/bills_laws/ors/ors090.html
• ORS 90.302 — Limitations on Deposits and Fees: https://www.oregonlegislature.gov/bills_laws/ors/ors090.html
• ORS 90.323 — Rent Stabilization: https://www.oregonlegislature.gov/bills_laws/ors/ors090.html
• Oregon DOJ Landlord-Tenant Law Guide: https://www.doj.state.or.us/consumer-protection/housing/
• Oregon Law Help — Security Deposits: https://oregonlawhelp.org/resource/security-deposits
• Portland Renter Protections: https://www.portland.gov/phb/rental-services

This template is for informational purposes only and does not constitute legal advice. Laws change frequently; verify current requirements with a licensed Oregon attorney before use.