Oregon Security Deposit Deductions: What Landlords Can (and Can't) Charge – With Real Examples

Christian Bryant
Jan 2
3 min read

As president of the Portland Area Rental Owners Association (PAROA), I field questions constantly from landlords and property managers across the Portland metro and all over Oregon about handling security deposits at turnover.

Video summary of this article

It's one of those topics that can feel straightforward until you're knee-deep in a move-out inspection, wondering if that scuff mark or carpet stain qualifies for a deduction. Get Oregon security deposit deductions wrong, and it can lead to disputes, small claims court, or worse – nobody wants that kind of stress on top of everything else we deal with.

Example of an itemized accounting form showing security deposit deductions for repairs and cleaning. — Sample itemized security deposit statement – keep it clear, detailed, and backed by evidence for smooth turnovers.

As we start 2026, the core rules haven't shifted dramatically from recent years. The main guidance still comes from ORS 90.300, requiring landlords to return the deposit or provide an itemized accounting within 31 days after the tenant surrenders possession and provides a forwarding address. Miss that deadline without good cause, and you risk owing twice the wrongfully withheld amount – a costly mistake that can hit hard, especially for smaller landlords.

Allowable Oregon Security Deposit Deductions: Sticking to the Rules

You can only deduct amounts reasonably necessary for things beyond ordinary wear and tear. That includes:

Unpaid rent or utilities (if the lease makes the tenant responsible).
Repairs for damage caused by the tenant, their guests, or pets – like holes in walls, broken fixtures, or excessive pet damage.
Cleaning costs to return the unit to its move-in condition (beyond normal buildup from living there).
Other breaches outlined in the lease.

In Portland, additional rules under City Code apply – for example, Owner/Landlord labor charges over $250 need supporting invoices/documentation. Statewide, you can't deduct for improvements or routine maintenance that's just part of owning a rental.

Infographic examples of normal wear and tear versus deductible tenant damage in rental properties, including carpets, walls, and fixtures. — Helpful chart comparing normal wear and tear to tenant-caused damage – essential for fair Oregon security deposit deductions on carpets and walls.

Normal wear and tear? That's off-limits. We're talking everyday living: faded paint from sunlight, minor wall scuffs from furniture, light carpet traffic patterns, or small nail holes from hanging pictures. It's the natural result of a tenant actually living in the place – can't charge for that.

Real-Life Examples to Guide Your Oregon Security Deposit Deductions

To make this practical, here are some common scenarios I've seen (or helped PAROA members navigate):

Carpets: Light fading or minor wear from foot traffic? Normal – no deduction. Deep stains from spills, cigarette burns, or pet urine requiring replacement? Deductible, with photos and quotes to back it up.
Walls: A few small picture holes or light marks? Wear and tear. Large dents, unauthorized paint jobs, or kids' "artwork" in permanent marker? Fair game for charges.
Cleaning: Everyday dust or minor kitchen buildup? Your responsibility between tenancies. But heavy grease on appliances, trash left behind, or biohazards requiring professional cleanup? Deduct those costs.
Appliances/Fixtures: Age-related wear, like a slightly foggy fridge seal? Normal. A broken oven door from misuse? Tenant responsibility.

In one case a member shared, a tenant's pet had caused significant door scratches – they deducted for refinishing, supported by move-in/move-out photos and an invoice. Clear documentation made all the difference.

Chart illustrating allowable security deposit deductions for damage beyond normal wear and tear in rentals. — Visual guide to when landlords can (and can't) deduct from security deposits – spot the difference between everyday use and excessive damage.

Best Practices to Avoid Disputes

The key to smooth Oregon security deposit deductions? Thorough documentation from day one. Conduct detailed move-in inspections with the tenant (or give them a chance to note issues), take dated photos of everything, and use a solid checklist. Repeat at move-out. This protects you legally and often prevents arguments before they start.

Sample rental property move-in and move-out checklist for landlords to track condition and avoid deposit disputes. — Example move-in/move-out inspection checklist – your best tool for documenting condition and supporting deductions.

If questions arise, communicate early and transparently. Most disputes resolve with a quick explanation and evidence. And remember, staying educated on these rules – through PAROA resources or classes – is one of the smartest ways to protect your investments long-term.

Laws can have specifics depending on your location or situation, so always double-check current statutes or consult professionals for your exact case.

Happy (and fair) landlording!

Christian Bryant

President,

Portland Area Rental Owners Association (PAROA)

www.paroa.org

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