Most residential landlords require tenants to pay a security deposit to cover any repairs needed when the tenant moves out, or to cover the tenant’s failure to pay the last month's rent.

Laws vary from state to state, but many states have statutes that provide the maximum amount of security deposit a landlord may require for a residential lease and the costs for which the landlord may use the security deposit (cleaning, repairs, unpaid rent) following termination of the lease.

These laws also provide a specific deadline (often 30-60 days) for the landlord to return the tenant’s security deposit following termination of the lease—after deducting any amount properly withheld, as allowed by law.

In Oregon, residential landlords can require tenants to pay a security deposit which may be used to cover repairs for damages beyond normal wear and tear, cleaning to restore the unit to the same level of cleanliness it was at the beginning of the tenancy, and unpaid rent. Oregon law does not set a maximum limit on the amount a landlord can charge for a security deposit. However, the law is specific about the timeline and process for returning the deposit. Landlords must return the security deposit within 31 days after the tenancy has ended and the tenant has delivered possession of the premises to the landlord. If deductions are made, the landlord must provide the tenant with a written accounting that lists the exact reasons for any amount withheld. If a landlord fails to comply with these requirements, the tenant may have the right to recover twice the amount wrongfully withheld.