Bill > SB158

This bill allows landlords to offer tenants an alternative to traditional security deposits by charging a recurring fee in lieu of a security deposit. The landlord can use this fee to purchase insurance coverage for potential unpaid rent or property damage, and the fee may be fully or partially refundable. Before implementing such a charge, the landlord must have the tenant separately sign an agreement that clearly discloses key details, including the fee amount, payment schedule, and that the fee is optional. The tenant must be informed that they can choose to pay a traditional security deposit instead, and the agreement must specify whether any portion of the fee is refundable. The bill specifies that this charge is not considered a security deposit and is not subject to existing security deposit regulations. Importantly, the landlord must return any existing security deposit before collecting this new charge, and nonpayment of the fee is not grounds for terminating the rental agreement for nonpayment of rent, but can be grounds for termination for cause. The legislation amends several existing Oregon Revised Statutes to incorporate these new provisions, providing a clear framework for this alternative to traditional security deposits.

Housing and Urban Affairs

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB158