An Oregon lease agreement is a contract between the landlord (lessor) and the tenant (lessee) that regulates their rights and duties.
Most commonly, people draft the lease agreement because:
Reasons to Use a Lease Agreement
It provides a clear outline of all the rights and duties of each contractual party
The contractual parties can protect and prove their rights before the court
It prevents disputes between the contractual parties
The tenant can use it as the address verification
It sets the rent amount, security deposit, and all the fees
The tenant sends a rental application to the landlord before starting the lease agreement drafting process. The rental application contains all the information about the tenant, including their credit score and references from previous leases. The landlord can also do a background check on the tenant.
If everything is in order, the landlord will invite the tenant to start the lease agreement negotiation and drafting process.
Oregon Lease Agreement Required Disclosures
Every lease agreement in Oregon must include the following clauses, as required by federal and state law:
Lead-based paint disclosure. The landlord must inform the tenant about any lead-based paint presence at the leased property. This disclosure is required by federal law for any property built before 1978. (42 U.S. Code § 4852d)
Owner and manager disclosure. Before the lease term starts, the landlord must disclose the names and addresses of the property owner and manager. They must also provide the name and address of any person authorized to receive notices and demands from the tenant on behalf of the property owner. (§ 90.305)
Flood plain disclosure. If the leased property is located within the “100-year flood plain,” as determined by the National Flood Insurance Program, this information must be disclosed in the lease agreement. (§ 90.228)
Bad check fee disclosure. In case the landlord wants to charge the bad check fee to the tenant, they must disclose such a fee in the lease agreement. The fee cannot exceed the $35 amount. (§ 30.701)
Smoking policy disclosure. For certain categories of leased units provided in Oregon Revised Statutes § 90.220(4), the landlord must include the smoking policy in the text of the lease agreement.
Shared utilities disclosure. If the multiple dwelling units are sharing the same utility meter, the lease agreement must contain the formula for calculating the share that must be paid by the tenant (§ 90.315)
Legal proceedings disclosure. Any legal proceedings and current or pending financial default related to the property must be disclosed by the landlord for properties with four or fewer rental units. (§ 90.310(1))
Recycling disclosure. The landlord with five or more rental units located within the urban growth boundary where multifamily recycling service is implemented must include the guidelines for proper recycling in the lease agreement. (§ 90.318)
Move-in checklist (for the City of Portland only). If the landlord requires a security deposit, they must provide the tenant with a move-in checklist no later than 7 days after the lease begins. If the tenant fails to fill out the move-in checklist, the landlord will have 17 days to take photos of the leased property and complete the checklist. (§ 30.01.087(D)(1))
Oregon Lease Agreement Optional Disclosures
In addition to the mandatory clauses, you should also include some clauses to additionally protect your rights and minimize disputes, namely the following two:
Asbestos disclosure. The landlord shall inform the tenant if there is any asbestos material present in the leased property's construction. Disclosure shall also contain guidelines for using the leased property without disturbing the asbestos fibers.
Mold disclosure. It shall contain information about the mold status at the property. This will limit the landlord’s liability in case of any damage caused by the mold.
Consequences of Non-Disclosure
Suppose the tenant faces any damages caused by the health and safety hazards that were not properly disclosed in the lease agreement. In that case, they can file a civil lawsuit against the landlord and receive compensation for the damages.
The landlord will be obliged to pay up to $19,507 in fines if they fail to include the lead-based paint disclosure in their lease agreement (24 CFR § 30.65)
Oregon Lease Agreement Security Deposits
Security Deposit Maximum
The Portland city code has set the maximum security deposit at no more than one-half of the monthly rent.
However, outside of Portland, state laws do not specify a maximum security deposit. So, once the security deposit is written into the lease agreement, the landlord can ask for any amount.
Security Deposit Return
After the lease term is over, the landlord must return the security deposit or any remaining portion within 31 days. (§ 90.300(13))
When is Rent Due in Oregon? (Grace Period)
The due date for the rent payment is provided in the lease agreement.
The state laws provide a 4-day grace period for the rent payment. After the grace period is over, the landlord can charge the late fee if it was previously disclosed in the lease agreement. (§ 90.260)
When it comes to eviction, the landlord can start the procedure after the grace period is over and after sending the 6-day notice to the tenant.
Oregon Rent Late Fees
There are 3 models for charging the late rent fee in Oregon (§ 90.260(2)) :
Rent Late Fees
Model #1. A reasonable flat rate is charged once per rental period.
Model #2. A flat rate is charged on a per-day basis. It can be charged after the 4-day grace period is over and cannot exceed 6% of the reasonable flat rate mentioned as the first model.
Model #3. 5% of the monthly rent. is charged for every 5-day period after the 4-day grace period is over.
Oregon NSF Checks
The landlord can charge an additional fee of up to $35 for any check they received for the rent payment that bounced due to insufficient funds. To be legally charged, any such fee must be disclosed in the lease agreement. (§ 30.371(5))
Oregon Landlord’s Right to Enter
The tenant must receive at least a 24-hour notice from the landlord before visiting the premises. (§ 90.322)
The landlord must also limit their visits to reasonable times.
Oregon Lease Agreement FAQ
Yes, the lease agreement is a legally binding document in Oregon.
If some of the clauses in the lease agreement are prohibited or illegal, that should not necessarily affect the validity of the lease agreement as a whole.
The Oregon lease agreement should have the following structure:
Names and addresses of the contractual parties
Information about the leased property
Maximal occupancy of the leased property
Rent amount and due date
Security deposit amount
Late and non-refundable fees
Mandatory disclosures required by federal and state law
Lease agreement termination rules
Place and date of the lease agreement signature
Signatures of the contractual parties
The best way to ensure your lease agreement is compliant with all the laws and regulations related to property leases in Oregon is to download one of the lease agreement templates available on this website.
Depending on the lease duration and type, you can choose between the:
Residential and commercial lease agreement
Long-term lease and month-to-month rental agreement
Room rental and sublease agreement
Rent-to-own lease agreement
After creating the lease agreement, make sure to:
Sign the lease agreement.
Notarize the lease agreement (optionally).
Inspect the property.
Sign the move-in checklist.
Pay the first month’s rent and security deposit (if you are the tenant).
Hand over the keys to the leased property (if you are the landlord).