Late Charges, Utility Bills
Note: In some of the answer sections of this booklet you will see references to ORS, which stands for Oregon Revised Statutes. For example, ORS 90.110. These references are to some of Oregon's landlord-tenant laws. These statutes can be found in most libraries as a part of a sixteen-volume set. You do not need to read these laws to use this booklet.
Time Limit Warning:
Under state and federal laws there are time limits for taking action to enforce your rights. Most lawsuits related to the rental agreement and the Oregon Residential Landlord and Tenant Act must be filed (started in court) within one year of the incident. There may be other - shorter - time limits that apply in other cases. Ask a lawyer about the time limits that could apply in your situation.
20. What is the difference between a fee and a security deposit?
A 'fee' is a nonrefundable payment for expenses that a landlord expects, such as the cost of cleaning the unit after you move. The landlord cannot charge a fee more than once, except a landlord can charge fees each time that the tenant fails to do something required by the rental agreement. For example, a tenant can be charged a late fee each time the rent is paid late. These kinds of fees, like the late fee, must be described in the rental agreement. (ORS 90.100(10))
A 'Security deposit' is any refundable payment that encourages to tenant to live up to the rental agreement. (ORS 90.100(31))
If the tenant follows rules stated in the rental agreement, the landlord must refund the security deposit within 31 days after the rental agreement ends.
A landlord may charge both a fee and a security deposit. After the rental agreement ends, the landlord must first use the fee that the tenant paid to pay for any costs before the landlord can use the security deposit to pay these costs.
EXAMPLE: When the tenant moved in, she paid a $100 cleaning fee and a $200 security deposit. When the tenant moved out, it cost the landlord $200 to clean the rental unit. To cover these costs, the landlord must use $100 from the cleaning fee and $100 from the security deposit that the tenant paid. The landlord can't use only the security deposit to pay costs if the tenant also paid a fee, and the landlord must use the fee first. (ORS 90.302(4))
See Questions 22-25 for more information about security deposits.
21. When I find a place that I want to rent, can the landlord make me pay in order to apply?
You cannot be charged a fee just to have your name placed on a waiting list, but you can be charged other fees.
a) An applicant screening charge -- is a payment that covers the costs of screening tenants, such as reference checks and credit reports. These charges can be collected only if there is a unit that is available for rent (or that will be soon), unless you agree otherwise in writing. The landlord must give you a receipt for the payment.
You must be given a written notice before you pay an applicant screening charge. This notice must tell you:
– the amount of the charge; and
– the factors the landlord will consider in deciding on your application; and
– the process the landlord will use in screening, including whether the landlord uses a tenant screening company; and
– that you have the right to send a statement if you think the information the landlord gets is wrong.
The landlord must also tell you an estimate of the number of other current applicants who are ahead of you in applying for units of the size you want. This information can help you decide whether it's worth applying.
If a landlord does not rent to you because of any information the landlord gets from a tenant screening service or credit reporting agency, the landlord must tell you this. The landlord must also tell you the name and address of the screening service or reporting agency. These rules apply even if you did not pay an applicant screening charge.
If the landlord doesn't do the screening after you've paid an applicant screening charge (because, for example, the unit is rented to someone else first), you must be refunded the money within a reasonable time.
If the landlord makes you pay an applicant screening charge without following these rules, you can sue the landlord for the amount of the applicant screening charge plus $100. See Question 13 for information about small claims court. (ORS 90.295)
b) A deposit to hold the unit -- is a fee paid before you enter into a rental agreement so that the landlord will hold the rental unit (not rent it to others). There must be a written agreement that describes when the deposit must be refunded to the tenant and when it can be kept by the landlord.
If the tenant and landlord then enter into the rental agreement, the landlord must give back the deposit - either by giving the tenant a refund or by crediting the tenant's account. If the tenant doesn't take the necessary steps to enter into the rental agreement, the landlord can keep the deposit. If the landlord doesn't take the necessary steps to enter into the rental agreement, the deposit must be refunded within four days. If the landlord charges a deposit without following these rules, the tenant can sue the landlord for the amount of the deposit plus $100. (See Time Limit Warning at the beginning of this section.) (ORS 90.295 (8))
22. When I rent a place, can a landlord make me pay a deposit?
Yes. A landlord can make you pay a security deposit. (But if you rent week-to-week, you cannot be charged this deposit.) You can try to work out the amount of these deposits with the landlord. Some landlords will let you make several payments on the deposit instead of paying it all at once.
Once you have moved in, the landlord cannot, without your agreement, charge a new deposit or increase the deposit you have already paid for the first year after you move in. After the first year, a landlord can charge or increase the deposit but must give you at least 3 months to pay it. (ORS 90.300)
If you paid a deposit, the landlord must return the deposit when you move out if you leave the place in good repair, give the landlord the required notice, pay the rent, return the keys, and follow other rules stated in your rental agreement. When you pay the deposit, ask for a receipt that shows you paid a 'security deposit.' Check the receipt, rental advertisement, canceled check and other writing you may have to see whether the deposit was clearly labeled as a 'security deposit' rather than a 'fee.' (ORS 90.300)
When you first rent a place, the landlord may also require you to pay rent in advance, sometimes called a 'last month's rent deposit.' See Question 42 for more information.
23. Can I get interest payments on a security deposit?
State law does not require landlords to pay interest, but you may ask if your landlord will agree to do this.
24. What if my landlord does not return my security deposit?
Within 31 days after you move and return your keys, the landlord must either return all of your deposit or tell you in writing why all of it is not being refunded. Read your rental agreement to find out how the landlord may use the deposit money.
If the landlord does not return the right amount of your money or does not give you a written explanation, you may sue, asking for twice the amount wrongfully withheld. If the landlord refunds only part of the deposit, you can cash the check and still sue the landlord if you think you are owed more money. But you should be ready to defend yourself against a possible counterclaim by the landlord for property damages. See Question 13 for information about small claims court; see Time Limit Warning at the beginning of this section. If the landlord has written 'full settlement' or 'accord and satisfaction on the back of the check, you should see a lawyer before you cash the check.
Read Questions 40, 41, and 44 for information on what to do to improve your chances of getting your deposit back when you move out. See Sample Letter 8. (ORS 90.300)
25. What happens if the place I am renting gets a new landlord?
Sometimes a landlord sells a building that is being rented out. Both tenants and new landlords must follow the terms of the original rental agreement. The new landlord must return any deposits when the tenants move, even if the new landlord did not get the deposit money from the old landlord. The new landlord must also make repairs and follow the rules set out in this booklet.
26. Can my landlord raise my rent after I move in?
Unless you have a lease that fixes the amount of rent for a specific term, rent may be increased with a 30 day written notice in a month-to-month tenancy and a 7 day written notice in a week-to-week tenancy. If you want to move rather than pay the new rent, you can give a notice (30 days - if you rent month-to-month; 10 days - if you rent week-to-week) to end the tenancy and move when the new rent goes into effect. See Question 40 for information on how to give a notice. Also, if you feel the landlord raised your rent to retaliate against you, see Question 31. (ORS 90.240)
27.Can a landlord charge me late fees for late rent payments?
Yes, if the written rental agreement says that late fees can be charged. But the landlord may not charge a late fee if you pay the rent by 12 midnight on the fourth day of the rental period. (This is midnight of the fourth day of the month if the rent is due on the 1st day of the month; a rental agreement cannot make rent due earlier than the first day of the month.)
There are three different kinds of late fees. The rental agreement must state the type and amount of late fee and when it can be charged. The landlord can change the kind of late fee that is charged by sending the tenant a 30-day notice in advance.
(1) Per rental period late fee: a reasonable flat amount charged one time for the month the rent is late. ('Reasonable' means an amount that is within the range of fees charged by landlords in that rental market.)
(2) Per day late fee: a daily fee that cannot be more that 6% of the reasonable flat monthly late fee described in (1) above.
(3) A five-day period late fee: a fee that is 5% of the rent, charged once for each five-day period the rent is late.
The per day and every 5 day late fees do not continue to accrue after the end of the month in a month-to-month tenancy.
A tenant who fails to pay a late fee cannot be evicted on a nonpayment of rent notice. A tenant who receives a 72-hour or 144-hour notice for nonpayment of rent can keep from being evicted by paying only the rent and not the late fee during the notice period. A landlord cannot deduct the late fee from this rent payment and claim that rent is owing. (Tenants who haven't paid late fees can be evicted on a 30-day notice, even if all rent has been paid. See Question 48, For-Cause notice.) (ORS 90.260)
28. Can a landlord charge me utility or service fees?
The written rental agreement can require a tenant to pay the landlord utility or service charges for utilities or services that are provided to the tenant's unit or a common area that the tenant can use. Examples of utilities or services are: electricity, natural or liquid propane gas, water, heat, air conditioning, cable television, sewer service, and garbage collection. A landlord can only charge you for these services if the written rental agreement requires this and usually cannot charge any more that the cost the landlord was billed. For video subscription services, such as cable TV or internet access, a landlord can charge up to 10% over the landlord's cost for these services, as long as the total cost is not more than the tenant would have to pay if the tenant got the service directly. (This rule applies to new tenants who entered into rental agreements after October 23, 1999.) If the rental agreement doesn't say how the amount charged to the tenant was figured out, the tenant can get a copy of the bill from the landlord before paying the charge. (ORS 90.315)
A tenant who fails to pay a utility or service charge cannot be evicted on a nonpayment of rent notice. A tenant who receives a 72-hour or 144-hour notice for nonpayment of rent can keep from being evicted by paying only the rent and not the utility charge during the notice period. (A landlord cannot deduct the utility fee from this rent payment and claim that rent is owing.) Tenants who haven't paid the utility charge can be evicted on a 30-day notice, even if all rent has been paid. (See Question 48, For-Cause notice.) (ORS 90.315)
29. What can I do about utility bills that I don't owe?
Before you move in, if you can't get utility service because a former tenant who was supposed to pay the utility bill didn't pay, you can: 1) pay the bill and deduct it from your rent, 2) reach an agreement with the landlord as to how the bill will be paid and get the agreement in writing, or 3) immediately end the tenancy by telling the landlord what happened and explaining that you will not keep the unit; the landlord has 4 days to return prepaid rent and your refundable security deposit.
After you move in, if you can't get service because a former tenant who was supposed to pay the utility bill didn't pay, or if your utilities are shut off because the landlord was supposed to pay the utility bill and didn't pay, you can: 1) pay the bill and deduct it from your rent, or 2) give the landlord a 72-hour written or verbal notice and, if utility service is not turned back on within the 72 hours, you can move. If the utility service is not restored and you move, the landlord is required to return prepaid rent and refundable security deposits within 4 days. You can also sue the landlord for two times the amount of damages that were caused by the shutoff, or twice a month's rent (which ever is more). You can also go to court to ask for an order to require the landlord to turn the utilities back on if the landlord had agreed to pay the bill and did not pay. (See Question 46.)
If the landlord does not return the rent and deposits that are owed to you, you can sue for twice the amount that is wrongfully kept. (See Time Limit Warning at the beginning of this section.) (ORS 90.315, 90.375)