What fees must be disclosed before signing a lease?

Understanding Required Fee Disclosures for Tenants in Oregon Before Signing a Lease

When renting a residential property in Oregon, tenants have specific rights regarding the disclosure of fees associated with the rental agreement. Transparency in fee disclosure helps tenants make informed decisions, prevents unexpected financial burdens, and fosters a fair rental market. If you are preparing to sign a lease in Oregon, it is important to know exactly which fees landlords must disclose before you commit.

Overview of Oregon’s Rental Fee Disclosure Requirements

Oregon law aims to protect tenants by requiring landlords to clearly communicate all fees related to renting a property. These disclosures must occur prior to the execution of a rental agreement to ensure clarity and agreement on all potential charges.

Fees That Must Be Disclosed Before Signing a Lease

1. Security Deposit and Related Fees

• Security Deposit Amount: Oregon law requires landlords to disclose the exact amount of the security deposit before a lease is signed. This amount typically cannot exceed one month’s rent, except in limited circumstances (e.g., move-in specials with a landlord-approved pet).
• Deposit Fees: If fees are charged for holding or reserving the rental unit prior to signing (often called an application deposit or holding deposit), these must also be disclosed.

2. Non-Refundable Fees

• Application Fees: Landlords may charge an application screening fee, but this amount must be clearly stated upfront. According to Oregon law, the application fee may be refundable or non-refundable based on the landlord’s policies, but the tenant must be told the amount before applying.
• Non-Refundable Cleaning or Maintenance Fees: While unusual, if a landlord charges any upfront non-refundable fees for cleaning or maintenance, these must be disclosed. However, Oregon typically restricts disallowing non-refundable fees that resemble security deposits.

3. Rent and Rent-Related Fees

• Monthly Rent: The lease must specify the amount of rent due, payment deadlines, and acceptable payment methods.
• Late Fees: Landlords must disclose any late fees or penalties that will be charged if rent is paid after the due date. Oregon law caps late fees at a reasonable amount, generally a maximum of 10% of the rent.
• Returned Check Fees: If the landlord charges fees for returned or bounced checks, this charge and amount must be outlined in the lease agreement.

4. Pet Fees and Deposits

• Pet Deposit or Fee: If pets are allowed, landlords must disclose any pet-related fees, including deposits, additional rent, or damages fees before the lease is signed.
• Oregon law permits landlords to charge a pet deposit up to an additional one month’s rent.

5. Other Potential Fees

• Utility Fees: If utilities (such as water, sewer, garbage, or electricity) are charged separately or through the landlord, the method and estimated amounts should be clearly disclosed.
• Parking Fees: Costs for reserved or assigned parking spaces must be stated prior to signing.
• Storage Fees: Any fees for storage lockers or additional spaces connected with the rental must be disclosed.

How these Fees Must be Disclosed

• Written Lease Agreement: All fees must be included in the written lease or rental agreement. This ensures tenants have a clear, enforceable record of all financial obligations.
• Clear and Understandable Language: Oregon landlords are required to use language that is transparent and not misleading. Hidden or ambiguous fees are expressly prohibited.
• Prior to Lease Signing: Disclosures should be made before the tenant signs the rental agreement to avoid any surprise costs.

Additional Considerations for Oregon Tenants

Security Deposit Rules

• Landlords have 31 days after a tenant moves out to return the security deposit, less any allowable deductions for damages beyond normal wear and tear.
• An itemized list of deductions must accompany the deposit return.

Limits on Fees and Deposits

• Oregon law limits the total amount landlords can collect upfront for deposits (usually one month’s rent for security, plus up to an additional month for pets).
• Application fees must be no more than the actual cost of screening and cannot be used to cover other landlord expenses.

Rent Increase Notices

• While not strictly a fee disclosure before lease signing, Oregon requires landlords to provide tenants with advance written notice of rent increases, typically at least 90 days prior if the tenant has resided in the unit for more than 12 months.

Summary Checklist for Tenants in Oregon

Before signing your lease, ensure that the following fees are fully disclosed in writing:

• Security deposit amount and conditions
• Application screening fee amount and refund policy
• Monthly rent and due dates
• Late payment fees and percentages
• Returned check fees
• Pet deposits and pet fees, if applicable
• Utility payment responsibilities and estimated charges
• Parking and storage fees, if any
• Any other anticipated fees or charges related to the tenancy

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Know your rights and review your lease carefully to confirm all fees are transparently disclosed before signing. Understanding Oregon’s rental fee disclosure requirements protects you from unexpected costs and helps establish a clear, fair landlord-tenant relationship. If you have any doubts about the fees listed or believe a landlord is failing to provide proper disclosures, you may seek assistance by contacting local tenant advocacy organizations or legal resources specializing in Oregon rental laws.