How do security deposits work in Oregon?
The short answer
Oregon requires a security deposit to be accounted for and returned within a set period after a tenancy ends, with a written itemization of any deductions. A 2026 change also requires a deposit to be returned when a lease never actually begins because of a habitability problem.
Last reviewed August 26, 2026
Return and itemization
After a tenancy ends, the deposit must be returned within the statutory window, accompanied by a written accounting of anything withheld.
Deductions have to be for actual damage or amounts the lease permits, not for ordinary wear. The distinction is where nearly every deposit dispute lives.
The 2026 change most owners have not seen
HB 3251 addresses deposits where a lease never starts because of a habitability issue. If the unit was not fit to occupy and the tenancy did not begin, the deposit is returnable.
This is a narrow situation, but it catches owners who treat a signed lease and a paid deposit as final regardless of the unit's condition on the move-in date.
What makes a deduction defensible
A documented move-in condition report, with photographs, taken before the tenant occupies the property.
Without that baseline, a deduction two years later is one party's recollection against another's. With it, the deduction is a comparison. This is the single highest-return piece of paperwork in a tenancy, and it costs an hour at move-in.
Why this one bites
Deposit disputes are small in dollars and large in consequence: they are the most likely thing to produce a claim, a bad review, and a tenant who contests everything else.
Common questions
How long does an Oregon landlord have to return a security deposit?
The deposit must be returned within the period Oregon statute sets after the tenancy ends, together with a written itemization of any amounts withheld.
Can an Oregon landlord deduct for normal wear and tear?
No. Deductions must be for actual damage or for amounts the lease specifically permits. Ordinary wear from normal use is not deductible.
Does a security deposit have to be returned if the tenant never moves in?
Under a 2026 change, yes, where the lease never began because of a habitability problem with the unit.
This is a summary, not legal advice.
Oregon landlord-tenant law changes, and how a rule applies depends on the specific property and tenancy. Figures set annually by the state, such as the rent-increase cap, change year to year. This page was verified on August 26, 2026. For a decision with money or a legal deadline attached, confirm against current law or with an attorney. Reading this page does not create an attorney-client relationship.
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