Oregon Security Deposit Law: Deadlines & Penalties

Oregon landlords have 31 days after the tenancy ends and the tenant delivers possession to return any part of the security deposit they are not claiming. Deductions are limited to amounts reasonably needed to cover unpaid rent and other defaults under the rental agreement and to repair damage caused by the tenant, beyond ordinary wear and tear, along with a few specific items such as certain carpet cleaning allowed by the statute.

Any claim against the deposit requires a written accounting that states specifically the basis for each charge, delivered within the same 31 days. The accounting and refund must be sent by personal delivery or first-class mail, or by email if the parties agreed to it. Prepaid rent must be accounted for separately from the deposit.

If a landlord fails to return the money or provide the written accounting on time, or withholds money in bad faith, the tenant may recover twice the amount wrongfully withheld. The landlord must also give a receipt for any deposit and list it in a written rental agreement, and can't add a new or increased deposit during the first year of the tenancy except for an agreed change such as a new pet.