New Portland Oregon Tenant Screening and Security Deposit Laws

/

On March 1st, 2020 the City of Portland updated their rules regarding tenant screening and security deposits. These rules are relevant to all new leases signed (including lease renewals) after March 1st 2020. There have been significant changes to the requirements for advertising a property, the security deposit amount, move-in condition reports, and the tenant screening process. Please follow the links to the Portland Housing Bureau brochures located at the bottom of the blog post for additional information.

Security Deposit Rules 

  • Security deposit cannot be more than 1 times the monthly rent.

    • Exception: If tenants do not meet the original screening criteria they can be accepted with as high as 1.5 times the monthly rent.

  • If you are charging last month’s rent up front then you can only charge ½ of one months rent for the security deposit.

  • If you charge over 1 times the monthly rent for the security deposit you will need to offer a payment plan for the tenants.

  • If tenant does not complete and submit a Move in Condition Report within seven days, Landlord is responsible for completing the report and providing it to the tenant by 17th day of tenancy with digital photographs.

  • The lease must say the name and address of the banking institution where security deposit will be held. 

Not allowed to be charged to a tenant’s security deposit: 

  • Routine maintenance 

  • Ordinary wear and tear 

  • Replacement of appliances or fixtures that failed or sustained damage not caused by Tenant act or omission 

  • Repair or replacement of pre-existing damage or malfunctioning appliances, fixtures, equipment, or property as noted in the required move-in condition report 

  • Any cost that is reimbursed by Landlord’s comprehensive general liability insurance or by warranty.

Allowable charges to Security Deposit: 

  • Repair and replacement of fixtures, appliances, equipment, or personal property itemized in the rental agreement, if malfunction or damage is due to Tenant act or omission. 

  • Actual costs, reasonably incurred, to repair the unit to its condition at the beginning of lease. 

Screen Shot 2020-03-11 at 11.45.05 AM.png

Portland Advertising Requirements 

When advertising to the public, a landlord is required to give 72 hours notice of unit availability before beginning to accept applications.

The notice must specify:

a) when applications will begin to be accepted (no sooner than 72 hours);

b) whether or not the unit is accessible;* and

c) the screening fee (if charging a fee), and a description of the screening criteria.

Steps to Screening an Applicant

Screen Shot 2020-03-11 at 11.11.01 AM.png

Important Links and Sources:

Application and Screening Brochure:

https://beta.portland.gov/sites/default/files/2020-02/phb-rso-brochure-screening-v8-spreads.pdf

Security Deposit Brochure:

https://beta.portland.gov/sites/default/files/2020-02/phb-rso-brochure-security-deposits-web-spreads.pdf