What is considered a security deposit according to Oregon law?

According to Oregon law, a security deposit is defined as money collected from a tenant specifically to cover damages to the property or to cover unpaid rent. This aligns with the primary purpose of a security deposit, which acts as a financial safeguard for landlords against potential losses incurred as a result of a tenant's actions or non-payment at the end of a lease.

In this context, it's essential to differentiate security deposits from other types of payments. Rent paid in advance is simply a pre-payment for living in the property and does not serve the same purpose as a security deposit. Similarly, money collected for background checks is related to the process of evaluating a tenant’s suitability but does not provide protection against damages or unpaid rent. Lastly, a fee for property listing is a cost associated with marketing the property and is not connected to securing the landlord against tenant-related financial liabilities.

Understanding these distinctions reinforces the crucial role that security deposits play in property management, especially in the context of rental agreements and tenant responsibilities.