Security Deposit in Oregon
State-specific overview · Property & Real Estate
Landlords must return deposits within 31 days and pay interest on deposits held over one year.
How Oregon treats Security Deposit
Oregon law requires landlords to return security deposits within 31 days of lease end, with itemized deductions if any. Deposits held for one year or longer must earn interest at the rate set by the Oregon Department of Revenue. Landlords may deduct only for unpaid rent, damage beyond normal wear and tear, and other lease violations. Failure to comply can result in the tenant recovering the deposit plus damages and attorney fees.
The general definition of Security Deposit
Money a tenant pays upfront to a landlord as a guarantee against damage or unpaid rent.
A security deposit is cash that a tenant gives to a landlord at the start of a lease, held as insurance against property damage or unpaid rent. The landlord must keep this money in a separate account and return it to the tenant when the lease ends, minus any deductions for legitimate damages or unpaid bills. Most states have strict rules about how quickly landlords must return deposits (often 30–45 days) and require them to itemize any deductions. If a landlord wrongfully keeps the deposit, the tenant can sue for the full amount plus penalties.
Read the full Security Deposit entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Oregon.