SALEM, Ore. — A new bill passed by the Oregon Legislature could make it easier for renters to reclaim security deposits when prospective rental units are found to be unsafe or uninhabitable.
House Bill 3521, which now heads to Governor Tina Kotek’s desk for final approval, would require landlords to return security deposits within five days if a rental unit is found to have major defects such as mold, unsafe electrical wiring, broken plumbing, or pest infestations before a lease is signed.
Related posts
This Article Includes
- 0.1 Related posts
- 0.2 Thousands Evacuated as Rowena Fire Scorches 3,500 Acres in Northern Oregon
- 0.3 Oregon driver fights police, caught with stolen car, drugs, and illegal firearm
- 1 Protecting Renters From Uninhabitable Units
- 2 Driven by Real Stories of Renters Losing Thousands
- 3 Renters Make Up a Large Share of Oregon Households
- 4 Senate Sponsor Clarifies Landlord Protections
The bill passed the Oregon Senate in a 20-8 vote on Thursday, after previously clearing the House in April by a 33-18 margin.
Protecting Renters From Uninhabitable Units
Under the proposed legislation:
-
Landlords must refund deposits within five calendar days if the unit is deemed substantially uninhabitable before move-in.
-
If they fail to return the deposit, they would be liable to pay a fee equal to the original deposit amount.
-
Landlords would be exempt from penalties in cases involving natural disasters or emergencies.
-
They would still retain the option to return deposits in person at their business rather than by mail.
The measure aims to address a common complaint among rental applicants who lose money on hold deposits after discovering severe property issues.
Driven by Real Stories of Renters Losing Thousands
Rep. Annessa Hartman (D-Gladstone) introduced the bill after hearing from Oregonians who lost hundreds or even thousands of dollars to “hold” fees on homes that turned out to be unsafe or uninhabitable.
“This is about fairness,” Hartman said. “People shouldn’t have to pay for housing they can’t safely live in.”
According to Oregon Housing and Community Services, 51% of low-income households in the state are renters. The U.S. Census Bureau reports that 37% of Oregonians rent, a figure higher than the national average.
Renters form the majority in several Oregon cities, including:
-
Eugene
-
Corvallis
-
Monmouth
-
Beaverton
-
Seaside
The bill could have wide-reaching effects for these communities, especially as affordable and habitable housing options grow scarce.
Senate Sponsor Clarifies Landlord Protections
Sen. Deb Patterson (D-Salem), the bill’s Senate sponsor, emphasized that the legislation doesn’t stop landlords from collecting deposits or keeping them if an applicant backs out without valid cause.
“What does change is that applicants will have the right to walk away if the unit is substantially uninhabitable,” Patterson said during debate on the Senate floor.
