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It’s one of the more common questions landlords ask:
“What can I legally deduct from my tenant’s security deposit?”
The answer depends on both Oregon law and how you document and manage your property.
I’m Mendell Gosnell with Centurion Real Estate Management, and in this article, I’ll explain what’s allowed, what’s not, and how Centurion helps owners stay compliant and fair — while protecting your investment.
WHAT THE LAW SAYS
Under Oregon Revised Statute 90.300, landlords can deduct from a tenant’s security deposit only for:
1️ Unpaid rent or fees owed under the lease
2️ Repairing damages beyond normal wear and tear
3️ Cleaning costs necessary to return the property to the condition it was in at move-in
You can’t charge for normal aging — things like minor carpet wear, faded paint, or small nail holes.
Oregon law also requires you to provide a written, itemized accounting of deductions within 31 days of the tenant moving out.
COMMON LEGAL DEDUCTIONS
Here are examples of deductions that are typically allowed under Oregon law and Centurion’s management standards:
Unpaid rent or utilities left in the tenant’s name
Excessive cleaning — such as grease buildup, trash removal, or dirty appliances
Damages — like broken blinds, holes in doors, or missing smoke detectors
Carpet replacement — only when damage exceeds normal wear
Yard neglect — if landscaping was the tenant’s responsibility
Every deduction should be backed by photos, invoices, and documentation.
That’s why we always perform pre-move-in and move-out inspections with time-stamped photos and videos.
WHAT YOU CANNOT DEDUCT
Oregon law is very clear about what you cannot deduct:
Normal wear and tear — carpet fading, minor scuffs, or small nail holes
Upgrades or remodels — you can’t use a tenant’s deposit to improve a property
Time and labor not documented — you must provide evidence of the actual cost
Improper deductions are one of the top reasons landlords lose in small claims court — and why it’s important to follow the process exactly.
HOW CENTURION PROTECTS YOU
At Centurion, we follow a strict documentation and compliance process that protects both owners and tenants.
Our move-in and move-out inspections include photos, video, detailed checklists, and vendor invoices.
We provide the required 31-day deposit accounting automatically — ensuring full legal compliance under Oregon law.
We also educate tenants up front on expectations, cleaning standards, and how to avoid deductions — which means fewer disputes and faster turnovers.
The result: lower liability, happier tenants, and a well-protected investment.
Security deposits don’t have to be a point of conflict — when managed properly, they’re a tool to keep your property protected and your operations professional.
Professional Insight: Processing security deposits can be one of the more challenging parts of managing a property for a client. You want to protect the client’s property and make sure you minimize expenses all while you want to be fair to the resident and of course stay well within the bounds of what the law requires. Some days it seems hard to please everyone. We have seen owners pushing us to charge things to tenants that are definitely not legal or right. On the flip side when we charge the tenant that are rightly their expense, they never think it is right. Not to mention the time limit constraints that you are under to get it processed. Which is why we have a team that works primarily just on security deposit dispositions – it takes a lot of resources to get it done right and within the legal time limit.
protect your investment.
