What happens if a landlord fails to return a security deposit on time in Oregon?

If a landlord fails to return a security deposit on time in Oregon, they may owe the tenant damages. Oregon law requires landlords to return the security deposit, or the portion withheld, within 31 days after the tenant vacates the rental property. If the landlord does not comply with this timeframe and cannot provide a legitimate reason for withholding the deposit, they may be liable for damages.

Under Oregon law, tenants can seek reimbursement for damages that may include any financial losses from the improper withholding of the deposit. This encourages landlords to adhere to the legal requirements associated with security deposit returns, promoting fair treatment of tenants and accountability for landlords. This accountability reinforces proper property management practices within the state, ensuring that tenants feel secure in their rights when renting properties.