Portland Security Deposit Rules: What the Security Deposits Ordinance Adds to Oregon Law

A landlord in Portland has to satisfy two sets of rules at once: the Oregon statute, Or. Rev. Stat. § 90.300, and the city's own Security Deposits Ordinance (PCC § 30.01.087). The state law sets the 31-day return deadline after termination of the tenancy and delivery of possession; the local ordinance adds rules on deposit cap, interest on the deposit, paying the deposit in installments, receipt and itemization, relocation assistance and rent-increase notice. Where the two overlap, the landlord has to meet the stricter one.

What the Security Deposits Ordinance adds

• Deposit cap: A landlord may not collect a security deposit above one month's rent, or above one-half month's rent if last month's rent is also required; a conditional-approval deposit of up to half a month's rent may be added and paid over up to three months. (PCC 30.01.087.A.1-3)
• Interest on the deposit: Deposits must be placed within two weeks in a separate account, and if the account bears interest the interest accrues to the tenant (landlord may deduct up to five percent for administration). (PCC 30.01.087.B.1)
• Paying the deposit in installments: An additional conditional-approval deposit may be paid by the tenant in installments over up to three months. (PCC 30.01.087.A.3)
• Receipt and itemization: Landlords must give written condition reports, a final inspection within one week of termination, photo documentation, and an itemized accounting that documents labor costs over $200, plus rent-payment history within five business days on request. (PCC 30.01.087.D-F)
• Relocation assistance: No-cause or landlord-qualifying-reason terminations require 90 days' notice and relocation assistance of $2,900 (studio/SRO), $3,300 (one bedroom), $4,200 (two bedroom) or $4,500 (three or more bedrooms). (PCC 30.01.085.B)
• Rent-increase notice: A rent increase of five percent or more over a rolling 12 months requires at least 90 days' written notice, and an increase of 10 percent or more lets the tenant request the same relocation payment within 45 days. (PCC 30.01.085.C)

Who it covers: Dwelling units covered by the Oregon Residential Landlord and Tenant Act within Portland; PCC 30.01.085.I exempts week-to-week tenancies, owner-occupied shared units/duplexes/ADUs, temporary rental of a principal residence, military, family move-in, regulated affordable housing (rent increases only), URA-covered units, uninhabitable units, demolition-permit units and fixed-term intent-to-sell leases, subject to a PHB exemption acknowledgement.
Worth knowing: Each deposit violation carries damages of up to $250 (PCC 30.01.087.G). The relocation and 90-day rent-increase rules come from the separate Renter Additional Protections section, PCC 30.01.085, and Oregon law already requires 90 days' notice for rent increases. Both sections were read as amended by Ordinance 191973, effective January 1, 2025.

What Oregon law already requires

• Return deadline: 31 days after termination of the tenancy and delivery of possession.
• Itemized deductions: required in writing.
• Forwarding address: not a statutory condition of getting the deposit back.
• Penalty for wrongful withholding: Bad-faith failure to return or account exposes the landlord to twice the amount wrongfully withheld.
• Small claims limit: $10,000.
• Statute: Or. Rev. Stat. § 90.300.

Using both rules together

1. Read the lease for the deposit amount, the move-in date, and any clause that mentions the ordinance.
2. Check the local rule first: deposit cap under PCC § 30.01.087, then interest on the deposit, paying the deposit in installments, receipt and itemization, relocation assistance and rent-increase notice.
3. Count the Oregon deadline of 31 days from termination of the tenancy and delivery of possession.
4. A written demand that cites both Or. Rev. Stat. § 90.300 and PCC § 30.01.087 carries more weight than one that cites either alone. Bad-faith failure to return or account exposes the landlord to twice the amount wrongfully withheld.

Frequently Asked Questions

Q: Does Portland require interest on security deposits?
A: Yes. Deposits must be placed within two weeks in a separate account, and if the account bears interest the interest accrues to the tenant (landlord may deduct up to five percent for administration). There is no city-set rate; interest is owed only when the separate account actually earns it.

Q: Is the Portland deposit return deadline different from Oregon law?
A: No. The Security Deposits Ordinance does not change the return deadline, so the Oregon rule applies: 31 days after termination of the tenancy and delivery of possession under Or. Rev. Stat. § 90.300.

Q: Does the Security Deposits Ordinance apply to my unit?
A: Dwelling units covered by the Oregon Residential Landlord and Tenant Act within Portland; PCC 30.01.085.I exempts week-to-week tenancies, owner-occupied shared units/duplexes/ADUs, temporary rental of a principal residence, military, family move-in, regulated affordable housing (rent increases only), URA-covered units, uninhabitable units, demolition-permit units and fixed-term intent-to-sell leases, subject to a PHB exemption acknowledgement. Check the section cited below for the full list of exemptions before relying on it.

Q: Can I sue my landlord in small claims court for my Oregon deposit?
A: Yes. Oregon small claims court hears claims up to $10,000, which covers most deposits plus the statutory penalty. A dated written demand that cites Or. Rev. Stat. § 90.300 is the usual first exhibit.

Sources Checked

• PCC 30.01.087; PCC 30.01.085, Security Deposits Ordinance: code text, read 2026-09-20
• Or. Rev. Stat. § 90.300 (the Oregon statute cited above)
• LeaseLenses Oregon deposit data set, last reviewed 2026-09-19; the same data powers the Oregon demand letter tool
• Oregon landlord-tenant overview and the Oregon deposit rules page

This page is general legal information for Portland, Oregon, not legal advice. Local ordinances are amended more often than state statutes; read the current code text before relying on a figure in court.