Navigating Security Deposits
ORS 90.300 outlines the rules for how security deposits and other upfront tenant funds must be
handled. Many property owners and managers assume that collecting a deposit is simple—but a
mistake in accounting can end up costing you far more than the original amount.
Here’s what you need to know to stay compliant and avoid costly errors:
1. Be Clear and Specific About What You’re Collecting
ORS 90.300 requires that any funds collected from a tenant be clearly identified. This means
distinguishing between:
- Security Deposit
- Pet Deposit
Tip: Never bundle these into a single “deposit.” Each category must be documented separately in
the rental agreement.
2. Provide a Timely and Accurate Accounting After Move-Out
After a tenant vacates, landlords have 31 days to either:
- Return the full deposit, or
- Provide an itemized written accounting of deductions and return any balance.
Tip: Even if there are no monies to return, landlords must provide the itemized written
accounting of deductions.
Failure to meet this deadline—or issuing a vague deduction—can expose you to double the
amount in damages, plus legal fees.
3. Don’t Treat Deposits as Personal Funds
Deposits are the tenant’s money until legally claimed. Landlords must:
- Hold deposits in a separate account
- Avoid using those funds until they’re applied to damages
Commingling funds, even unintentionally, is against the law.
4. Document Everything
Protect yourself with thorough records:
- Move-in/move-out checklists
- Photos or videos of the unit’s condition
- Copies of all communication regarding damages or charges
If your deductions are ever challenged in court, your documentation will be your best defense.
Final Thoughts
Security deposit mismanagement is one of the most common and costly mistakes landlords can
make. Protect yourself!
See our helpful Checklist below:
SECURITY DEPOSIT CHECKLIST FOR LANDLORDS
✔ BEFORE MOVE-IN:
- Clearly itemize all funds collected (security deposit, first months rent, pet deposit, etc.)
- Include a detailed lease clause outlining how deposits are handled
- Conduct a move-in inspection
- Take time-stamped photos or video of the unit’s condition
✔ DURING TENANCY:
- Keep the deposit in a separate, clearly designated account
- Document all communications and incidents that may impact deposit
✔ AFTER MOVE-OUT:
- Conduct a thorough move-out inspection
- Take “after” photos/videos for comparison
- Prepare a written, itemized list of deductions (if any)
- Return unused deposit and/or accounting within 31 days
- Retain copies of all receipts or invoices for repairs or cleaning
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