Can landlords charge non-refundable security deposits?
This rental guidance was reviewed by the Tenants & Landlords Intelligence Team, specializing in lease agreements, notices, rent disputes, deposits, evictions, and tenant-landlord operational procedures.
Understanding Security Deposits in Oregon: Can Landlords Charge Non-Refundable Security Deposits?
If you are renting a home or apartment in Oregon, understanding the rules around security deposits is crucial to protecting your rights as a tenant. One common question tenants have is whether landlords can charge non-refundable security deposits. This guidance will clarify Oregon’s laws on security deposits, highlighting what landlords may legally require and how tenants can safeguard their interests.
What Is a Security Deposit?
In Oregon, a security deposit generally refers to a sum of money a landlord collects from a tenant at the start of a tenancy. This deposit protects the landlord in case of unpaid rent, damages beyond normal wear and tear, or other lease violations. Typically, a security deposit is refundable, meaning the landlord must return it (with possible deductions) after the tenant moves out.
Can Landlords Charge a Non-Refundable Security Deposit in Oregon?
No. Oregon law does not allow for non-refundable security deposits. According to Oregon’s Residential Landlord and Tenant Act (ORS Chapter 90), the funds collected as a security deposit must be refundable at the end of the lease term, minus legitimate deductions.
- Refundable by Definition: Security deposits are intended as a safeguard and must be returned to the tenant if the rental property is left in good condition and rent is fully paid.
- No “Non-Refundable” Deposits Allowed: Any amount labeled as a “non-refundable security deposit” that landlords attempt to collect is not recognized under Oregon law. Such charges may be challenged by tenants.
What Can Landlords Charge Instead?
While landlords cannot charge a non-refundable security deposit, they may ask for other fees under specific conditions, but these fees must be clearly distinguished from security deposits.
- Application Fees: Landlords may charge a non-refundable fee to cover screening costs such as credit checks or background checks.
- Pet Fees: Oregon allows a landlord to charge a pet deposit, but it must be refundable, or they may charge a monthly pet rent (a recurring fee). A one-time, non-refundable fee for pets is generally not allowed unless it is described as a non-refundable pet fee separate from the security deposit and justified clearly.
- Cleaning Fees: Any cleaning fees can only be deducted from the security deposit after the tenancy ends, provided the tenant did not leave the unit clean.
- Additional Charges: Late fees or other fees may be allowed under the lease, but these are separate from the security deposit.
Security Deposit Limits in Oregon
Oregon law also imposes limits on how much landlords can charge for security deposits.
- Maximum Amount: Landlords may not demand a security deposit of more than one month’s rent plus an additional refundable pet deposit if pets are allowed.
- Separate Pet Deposit: In addition to the regular security deposit, landlords can collect a refundable pet deposit equal to one month’s rent.
Landlord Responsibilities Regarding Security Deposits
Landlords in Oregon must follow certain procedures when handling security deposits:
- Written Receipt: Landlords must provide a receipt if the tenant requests it.
- Itemized Deductions: When withholding any portion of the security deposit, landlords must provide a written, itemized list of damages or unpaid rent within 31 days after the tenancy ends.
- Return Timeline: The landlord has 31 days after the tenant vacates the unit to return the security deposit or provide the itemized statement of deductions.
- Interest on Deposits: In Oregon, landlords must pay interest on the security deposit if the rental property contains more than four units, at a rate determined annually.
Tenant Protections and Remedies
If a landlord attempts to charge a non-refundable security deposit or retains any deposit improperly, tenants have several options:
- Request a Review: Tenants can review Oregon’s landlord-tenant laws for their specific protections regarding deposits.
- Negotiate: Tenants may try to negotiate fees with the landlord before signing a lease.
- File a Complaint: Tenants can file a complaint with local housing authorities or seek legal advice.
- Small Claims Court: Tenants may recover wrongfully withheld security deposits through small claims court.
Summary
- Non-Refundable Security Deposits Are Not Permitted: Oregon landlords must collect refundable security deposits.
- Security Deposit Limits: Typically limited to one month’s rent plus a refundable pet deposit if applicable.
- Other Fees Must Be Separate: Application fees and certain pet fees may be charged but must be clearly distinguished from security deposits.
- Landlord Must Follow Specific Rules: Including timelines for returning deposits and providing itemized deductions.