Bill > HB3521

This bill modifies Oregon's existing law regarding residential tenancy hold deposits, clarifying and expanding protections for both landlords and tenants. The bill specifies that landlords may only charge a deposit after approving a rental application and before executing the rental agreement, and must provide a written statement detailing rent, fees, deposit terms, and refund conditions. If a rental agreement is executed, the deposit must be applied to moneys owed or refunded immediately to the tenant. If the rental agreement is not executed due to the applicant's failure to comply, the landlord may retain the deposit, except in cases where the applicant rejects the agreement due to discovered material habitability defects. If the landlord fails to execute the agreement or the tenant rejects it due to uninhabitability, the landlord must return the deposit within five business days. The bill also strengthens penalties for non-compliance, allowing tenants to recover the deposit amount and, if the repayment is not timely and not due to an act of God, an additional penalty equal to the greater of the deposit amount or an amount agreed upon by the parties. These amendments will apply to deposits received on or after January 1, 2026.

Education, Housing and Urban Affairs

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB3521