Oregon landlords can legally collect several types of payments: rent, prepaid rent, screening charges, security deposits, utility charges, specific nonrefundable fees, late charges, damages, and deposits to secure the execution of a rental agreement. But each category is governed by strict rules — especially what can and cannot be charged, what must be disclosed in writing, and when fees must be refunded. This guide breaks down the rules in plain language so Central Oregon landlords remain compliant and protected.

 

 

As the rental market across Bend, Redmond, Prineville, and Sisters continues to tighten, property owners face increasing scrutiny over fees, deposits, and add-on charges. Oregon law sets clear boundaries on what landlords can collect — and violating those rules can lead to costly penalties, waived fees, or tenant claims under the Oregon Residential Landlord and Tenant Act (RLTA).

 

This guide summarizes what is actually allowed under ORS 90, translating dense statutory language into practical guidance every landlord and property manager should know.

Fee vs. Deposit: The Most Important Distinction

Before diving into specific charges, Oregon law draws a hard line between:

“Fee” (Nonrefundable)

A fee is a nonrefundable payment for a specific landlord expense or noncompliance event. If it’s called a fee, the tenant does not get it back.

“Security Deposit” (Refundable)

A security deposit is refundable and exists solely to secure performance of the rental agreement.
If it’s intended to cover damages, cleaning, or unpaid rent — it is a deposit, even if a landlord labels it a fee.

Mislabeling can get landlords in trouble. Always name charges accurately and describe them clearly in the written agreement.

1. Applicant Screening Fees: What Landlords Can Legally Charge

Oregon allows landlords to collect one specific fee from applicants: the screening charge.

What the Screening Charge Covers

  • Background checks

  • Credit reports

  • Reference checks

  • Time spent gathering application information

Legal Limitations

Landlords can only charge up to the average actual cost of screening. This includes:

  • Screening company fees

  • Credit bureau charges

  • A reasonable rate for the landlord’s administrative time

Before Accepting the Screening Fee, Landlords Must Provide:

  • Written notice of the fee amount

  • Written screening & admission criteria

  • A reasonable estimate of unit availability

When Must the Fee Be Refunded?

Refunds are required if:

  • The unit is filled before screening the applicant

  • The landlord chooses not to screen the applicant for any reason

Prohibited Charges for Applicants

Landlords cannot charge:

  • Additional application fees

  • Additional deposits from applicants (except the deposit to secure execution of the rental agreement)

2. Nonrefundable Fees for Specific Landlord Expenses

Oregon allows landlords to charge one-time fees for specific, reasonably anticipated expenses, but strict rules apply.

Key Requirements

A landlord:

  • Must describe the anticipated expense in writing or in the receipt

  • May charge the fee only once at the beginning or during the tenancy

  • Is not required to return or account for the fee at move-out

How These Fees Work at Move-Out

If the landlord collected fees tied to specific expenses, ORS 90 requires that these fees be applied to those expenses before taking money from the security deposit.

Examples of lawful expense-based fees:

  • Carpet cleaning fee (if charged once and disclosed properly)

  • Re-keying expense fee

  • Lease-set-up fee

Recurring fees must meet additional requirements (covered in the next section).

3. Recurring Charges, Penalties & Noncompliance Fees

Oregon allows some charges to be imposed multiple times — but only if they are defined in the written rental agreement and meet legal limits.

Late Rent Fees (Must Follow Oregon’s Strict Calculation Rules)

Late fees may only be charged when:

  • Rent is late on the 4th day of the rental period

  • The written rental agreement includes the fee structure

Three Allowed Late Fee Types

  1. Reasonable flat fee (charged once per rental period)

  2. Daily fee, starting on day 5

    • Cannot exceed 6% of the allowable flat fee per day

  3. 5% per 5-day period

    • 5% of the periodic rent

    • Charged once per 5-day period the rent remains unpaid

Important Legal Notes

  • Nonpayment of a late fee is cause for termination

  • But it is not grounds for a “nonpayment of rent” eviction

Dishonored Check Fee

A landlord may charge a fee each time a check is returned unpaid. No statutory dollar limit applies, but it must be reasonable.

Smoke Alarm Tampering Fee

If included in writing, landlords may charge a fee each time a tenant:

  • Removes

  • Deactivates

  • Tamper with
    a properly functioning smoke alarm or detector.

Other Noncompliance Fees

Landlords may charge recurring fees for:

  • Unauthorized pets

  • Failure to clean up pet waste

  • Parking violations

  • Storage of belongings in prohibited areas

These fees:

  • Must be in the written rental agreement

  • Must not be excessive

  • Can be charged repeatedly as long as the violation continues

4. Utility & Service Charges (Separate From Rent)

Utility billing is one of the most misunderstood areas in Oregon landlord-tenant law. Landlords can require tenants to pay utilities only if the written rental agreement allows it.

Landlord-Billed Utilities Must Be:

  • Billed to the landlord by the utility provider

  • Passed through to the tenant at actual cost

Common Area Utilities

Charges must be:

  • Clearly identified

  • Separate from unit-specific utilities

  • Disclosed in writing

Allowed Markups (Limited Situations Only)

Landlords may add up to 10% to:

  • Cable TV

  • Satellite services

  • Internet

But only if:

  • The total charge is still lower than what the tenant would pay directly

  • The markup is clearly disclosed in writing and on billing

Nonpayment Rules

Failure to pay utilities is:

  • Grounds for termination for cause

  • NOT grounds for a “nonpayment of rent” termination

5. Deposits to Secure Execution of a Rental Agreement

After approving an applicant but before signing the rental agreement, landlords may collect a deposit to secure execution.

Landlords Must Provide a Written Statement Describing:

  • Conditions for refunding or retaining the deposit

  • Deadline for executing the rental agreement

Disposition of the Deposit

If the agreement is executed:

  • Deposit must be applied to amounts owed (security deposit, rent)
    or

  • Immediately refunded

If the applicant fails to execute:

  • The landlord may retain the deposit

If the landlord fails to execute:

  • The deposit must be refunded within four days

Summary of Payments Oregon Landlords May Collect

Under Oregon law (ORS Chapter 90), landlords may legally collect:

  1. Applicant Screening Charges

  2. Deposits to Secure Execution of Rental Agreement

  3. Security Deposits (including last month’s rent)

  4. Nonrefundable Fees

  5. Rent

  6. Prepaid Rent

  7. Utility or Service Charges

  8. Late Charges

  9. Damages for Noncompliance

Understanding these categories — and keeping documentation clear — is essential to staying compliant.

Parker’s Commentary

Oregon’s rental statutes around fees and deposits are detailed for a reason: transparency and fairness are essential to maintaining trust between landlords and tenants. As a property manager and broker in Central Oregon, I see many disputes that stem not from bad intentions but from misunderstandings about what can and cannot be charged.

A properly structured fee system:

  • Protects landlords

  • Clarifies expectations

  • Reduces conflict

  • Keeps you compliant with Oregon law

If you're unsure whether a charge is legal, or how to structure your lease agreements to avoid prohibited fees, it’s always better to ask before implementing it. A few minutes of planning can prevent months of legal complications.

FAQs

Can Oregon landlords charge cleaning fees at move-in?

Only if the cleaning fee is a one-time, nonrefundable fee for a specific anticipated expense and disclosed in writing.

Can a landlord charge both a fee and a deposit for the same issue?

No. Charges must be clearly categorized as either refundable (deposit) or nonrefundable (fee).

Are pet fees allowed?

Yes — noncompliance or authorized pet fees may be charged if in the written agreement. But deposits must follow ORS 90 deposit rules.

Can utilities be marked up?

Only cable, internet, or satellite — and only up to 10%.

Can a landlord charge a fee every time a tenant violates a rule?

Yes, as long as the fee is in the written agreement and is not excessive.

Key Takeaways

  • Oregon law separates fees (nonrefundable) from deposits (refundable).

  • Screening charges must reflect actual average costs.

  • Late fees have strict formulas and cannot be arbitrary.

  • Utility billing must follow clear disclosure rules.

  • Noncompliance fees are allowed but must be reasonable and in writing.

  • Deposits to secure execution must follow precise refund rules.

 

If you’re a Central Oregon landlord or property manager looking to review your fee structure, update your lease language, or ensure your practices comply with ORS 90, I’m here to help.

 

Reach out anytime for lease audits, compliance reviews, or tailored guidance to keep your rental operations running smoothly — and legally.