Oregon’s security-deposit rules are defined in ORS 90.300. After a tenant returns possession, landlords have 31 days to send a written itemized accounting and any refund. Missing the deadline or making unsupported deductions risks forfeiture and potential damages.[1]
Key takeaways
- 31 days Deliver itemized accounting and refund after possession is returned.
- Deduct only unpaid rent or fees and damage beyond ordinary wear; cleaning must be permitted and not duplicative.
- Estimates are acceptable initially; true-up with invoices promptly and refund any difference.
- Inside Portland, FAIR rules add caps and separate-account requirements.
When the 31-day clock starts
The timeline begins when the tenant delivers possession—keys, remotes, and access devices returned and the unit surrendered. From that date, count forward 31 days to your deadline. Provide the itemized accounting and refund by mail to the last known address or a permitted electronic method, and retain proof of delivery.[1]
Day 0
Tenant surrenders possession; collect keys; document condition (timestamped photos or video); record meter readings.
Days 1–7
Gather estimates and invoices; reconcile unpaid rent or fees; confirm lease authority for any cleaning charges.
Days 8–20
Draft a concise line-item accounting with reasons and amounts. Attach estimates if invoices are pending.
By Day 31
Deliver the accounting and refund; save proof of mailing or permitted electronic delivery.
Allowable deductions (and what to avoid)
Deductions may include unpaid rent or fees and damage beyond ordinary wear and tear. Cleaning is allowed only as authorized and should not duplicate normal turnover work. Carpet cleaning can be charged if properly disclosed and not double-counted.[1]
| Item | Allowed? | What to document |
|---|---|---|
| Unpaid rent or fees | Yes | Ledger, lease, notices, receipts |
| Damage beyond wear | Yes | Before/after photos, invoices or estimates |
| Cleaning (general) | Depends | Lease clause, scope, invoice; avoid charging for normal wear |
| Normal wear & tear | No | Note why no charge was assessed (defensive documentation) |
Receipts and holding
Issue a receipt when collecting the deposit and hold funds for the tenant’s benefit. The tenant’s claim to the deposit has priority over general creditors while properly held. Any mid-tenancy increase must allow reasonable time to pay.[1]
If your unit is in Portland: FAIR overlay
Portland’s FAIR rules overlay state law with deposit caps and account handling. If last month’s rent is also collected, additional security is generally capped at half a month; otherwise one month. Deposits must be kept in a separate financial-institution account within the required window, and interest, if any, is apportioned per rule.[2]