Oregon’s New Hold Deposit Rules for Renters (HB 3521)
Starting January 1, 2026, HB 3521 amends ORS 90.2295. Oregon now has clearer rules about the money landlords can ask for when you apply for a residential rental and want to hold the unit.
What Is a Hold Deposit?
A hold deposit is money a landlord takes after they approve your application but before you sign the lease. It is meant to save the apartment for you while the paperwork is finished. It is not the regular security deposit that covers damage later.
What Landlords Must Do
– They can only take this deposit after they approve you.
– Before they take any money, they must give you a written paper that clearly says:
– How much rent and fees you will pay
– How much deposit they want
– The rules for keeping or returning the money
What Happens to the Money
– If you sign the lease: The landlord must either put the hold deposit toward your first month’s rent or security deposit, or give it back to you right away.
– If you back out for no good reason: The landlord can keep the deposit.
– If you back out because the place is not livable (serious problems with heat, water, safety, etc.): The landlord must return the money.
– If the landlord is the one who breaks the deal: They must return the deposit within 5 business days.
What If the Landlord Breaks the Rules?
You can get the deposit back. If they do not return it on time (and it was not because of a natural disaster), you can also get extra money equal to the amount of the deposit (or more if you both agreed to a higher amount).
When the New Law Starts
These rules apply to any hold deposits a landlord takes on or after January 1, 2026.
Bottom line for renters: Ask for the written statement before you hand over any money to hold a place. Keep a copy. The new law gives you clearer rights and faster returns if the deal falls through through no fault of your own.
Frequently Asked Questions
Is a hold deposit the same as a security deposit?
No. A hold deposit is only to save the unit for you before you sign the lease. A security deposit is the money you pay later to cover possible damage while you live there.
Can a landlord take a hold deposit before they approve my application?
No. They must approve you first, then they can ask for the hold deposit.
What must the written statement include?
It must list the rent amount, all fees, the deposit amount, the rules of the deal, and when the landlord can keep or return the money.
What if I find big problems with the apartment after I pay the hold deposit?
If the place is not safe or livable (like no heat, broken plumbing, or serious safety issues), you can cancel and the landlord must give your money back.
How fast must the landlord return my money if the deal falls through?
Within 5 business days if the landlord is at fault or if you cancel because the place is not livable.
What if the landlord keeps my money when they should not?
You can demand the full deposit back. If they still do not return it on time, you may also get extra money equal to the deposit amount.
Does this law change regular security deposits?
No. This law only covers hold deposits taken before the lease is signed. Regular security deposit rules stay the same.
When do these new rules start?
They took effect January 1, 2026. Any hold deposit taken on or after that date must follow the new rules.
If you have questions as a landlord, feel free to contact Pikes Northwest to learn more. Call: 503-588-3586 and ask to speak to one our licensed brokers/property managers.