Are bounced check fees allowed for rent payments?

Oregon Tenant Guidance: Bounced Check Fees for Rent Payments

When renting in Oregon, tenants often have questions about additional charges related to rent payments, including whether landlords can charge fees for bounced checks. Understanding the legal framework around bounced check fees helps tenants manage their finances effectively and avoid unexpected costs.

Are Bounced Check Fees Allowed in Oregon?

Yes, in Oregon, landlords are permitted to charge a fee if a tenant's rent payment check bounces due to insufficient funds or any other reason. However, there are specific regulations about how these fees can be applied.

Relevant Oregon Law

• Oregon Revised Statutes (ORS) 30.701 outlines the rules regarding dishonored (bounced) checks.
• Under ORS 30.701, the payee—the landlord in this case—may recover a fee from the issuer (the tenant) for a dishonored check.
• The statute allows a maximum fee of $25 per bounced check when the check is less than $50, and 5% of the face amount of the check if it exceeds $50, with a maximum fee of $250.
• This fee is intended to compensate the landlord for the administrative costs and inconveniences caused by the bounced payment.

How Does This Affect Rent Payments?

• If your rent payment is made via check and that check is returned unpaid by your bank, the landlord can charge you the statutory bounced check fee.
• This charge is in addition to the rent amount you owe.
• The landlord cannot charge an arbitrary or excessive fee outside of the limits allowed by Oregon law.

Important Points for Tenants

• Written Notice: While Oregon law does not explicitly require landlords to notify tenants in advance about bounced check fees, it is best practice for landlords to disclose this policy in the lease agreement.
• Lease Agreement: Review your lease carefully to ensure any fees related to bounced checks comply with state law and are clearly stated.
• Payment Alternatives: To avoid bounced check fees, consider paying rent via certified funds, electronic transfer, money order, or other guaranteed payment methods.

What Should Tenants Do If a Check Bounces?

• Respond Promptly: Address the issue as quickly as possible by providing an alternative form of payment to cover the rent due.
• Pay Associated Fees: To avoid further legal complications, pay any bounced check fees as specified under Oregon law.
• Communicate with Landlord: Maintain open communication with your landlord if you expect delays or issues in payment. This can sometimes help prevent disputes.

Summary

In Oregon, landlords can legally charge tenants a fee when a rent payment check bounces. The fees must adhere to the limits established by state law: a fixed amount for smaller checks or a percentage for larger checks, capped at a reasonable maximum. Tenants should be aware of these rules and the terms in their lease to manage rental payments properly and avoid unnecessary charges.

By staying informed and proactive about your rent payments, you can protect your tenancy and minimize extra costs related to bounced check fees in Oregon.