What is the maximum permissible security deposit a landlord can charge in Oregon?

In Oregon, the law specifies that a landlord can charge a maximum security deposit that is equivalent to two months' rent for residential rental agreements. This two-month limit is in place to protect tenants from excessive financial burdens upfront.

The rationale behind this regulation is to ensure that security deposits remain reasonable and manageable for tenants, allowing them to enter into rental agreements without fear of unfair financial practices. This maximum deposit typically applies to regular situations, and while there can be exceptions or additional fees for certain circumstances (like for properties that allow pets), the base limit remains at two months’ rent under standard rental agreements.

Having a clear limit also helps maintain transparency in rental practices within the state, giving tenants confidence in knowing their rights concerning security deposits. In contrast to the other options, which suggest limits that are either too low or nonexistent, the established two-month cap is designed to balance the interests of both landlords and tenants effectively.