Oregonians hoping to rent a new home are facing soaring costs. Even before signing a lease, many renters can spend hundreds or even thousands of dollars on application fees, deposits, and other expenses. As rental prices continue to climb, some Oregon lawmakers are trying to ease the financial burden on tenants by proposing bills to eliminate certain fees.
According to the U.S. Census Bureau, nearly 37% of Oregonians rent their homes, which is higher than the national average. Cities like Eugene, Corvallis, Beaverton, and Seaside have renters making up a significant portion of the population. Unfortunately, rent prices are still on the rise. In February 2025, the average rent in Oregon was nearly $1,800 per month, an increase of $30 compared to last year.
Banning Holding Deposits and Application Fees
Rep. Annessa Hartman, D-Gladstone, introduced House Bill 3521 after hearing from renters across Oregon who lost large sums of money due to holding deposits. In some cases, renters paid a deposit to hold an apartment, only to show up and find the unit in poor condition with mold, broken plumbing, or pests. Tenants were then told they would lose their deposit if they didn’t sign the lease.
Hartman believes renters should not have to choose between living in an unsafe home or losing money. “Tenants should not have to choose between signing a lease for an unsafe home or losing a significant amount of money,” she said.
However, landlords are opposed to the bill. John Baker, a representative of Oregon Realtors, argued that eliminating holding deposits would make it harder for landlords to provide a unit to tenants until they are ready. He warned that the bill could result in landlords not holding units for tenants at all, making it difficult for renters to secure a place to live.
Rep. Pam Marsh, D-Ashland, chair of the housing committee, pushed back against these concerns. She argued that tenants also face unexpected challenges, such as financial difficulties, and should not be penalized more harshly than landlords when something goes wrong. “Why should a landlord get special treatment aside from what a tenant gets when we have experiences outside of control of one party or another?” Marsh questioned.
Ending Screening Fees
Rep. Mark Gamba, D-Milwaukie, introduced House Bill 2967 to ban landlords from charging screening fees. These fees are often required for background checks and can add up quickly, especially when tenants apply to multiple rental properties. Gamba shared his own experience of spending money on application fees while looking for an apartment in Salem. “If you put out 50 bucks, 60 bucks, 70 bucks, you’re not going to be able to take six different landlords to small claims court to get back your 50 or 60 bucks,” Gamba explained.
Many tenants, especially those in lower-income situations, struggle with these fees. Adriana Grant, a policy associate for the Eugene Tenant Alliance, shared that she spent nearly $500 on application fees during her last move, and she hasn’t been able to get most of that money back. She believes that such fees create a barrier for families to access stable housing, often pushing them into substandard living conditions.
Some landlords have expressed concerns that eliminating fees could result in a flood of unqualified applicants. Jason Miller, legislative director for the Oregon Rental Housing Association, argued that without screening fees, more people would apply for apartments without meeting the necessary criteria, which could create a backlog and make it harder for qualified tenants to find housing.
However, many renters, including Whitney Donielson and Blake Claiborne, shared their frustration with the current system. Donielson pointed out that applying for multiple properties can cost at least $100 just for application fees, not to mention the security deposit and first and last month’s rent. Claiborne criticized landlords for focusing on the idea that people would apply for apartments “frivolously,” which he said is a misunderstanding of the financial strain renters face.
Monthly Fees Instead of Security Deposits
Sen. Mark Meek, D-Gladstone, introduced Senate Bill 158, which proposes replacing traditional security deposits with monthly fees. The bill is designed to make it easier for renters to afford housing by allowing them to pay smaller, more manageable fees instead of a large upfront deposit.
“Even for working families, coming up with the first and last month’s rent, plus a security deposit, can be an overwhelming financial burden,” Meek said. He believes that allowing monthly fees instead of a lump sum deposit could help renters manage their finances better.
However, the bill has drawn criticism from tenant advocates. One major concern is that monthly fees could ultimately end up costing renters more than a security deposit, especially if they stay in the apartment for several years. Unlike a security deposit, which can be returned if the unit is in good condition, monthly fees would not be refunded, and there is no guarantee that the fees would be used for repairs or damages.
Timothy Morris, executive director of the Springfield Eugene Tenant Association, argued that the bill lacks sufficient consumer protections. He believes that while the idea of replacing security deposits with monthly fees might sound good on the surface, it would ultimately harm low-income tenants and create additional financial burdens.
Conclusion
As rent prices continue to rise in Oregon, lawmakers are exploring ways to reduce the financial strain on renters. While some proposals aim to eliminate holding deposits and screening fees, others are focused on replacing security deposits with monthly fees. However, these bills have sparked debate between tenants and landlords, with both sides presenting valid concerns. As the issue continues to evolve, it is clear that finding a balance between protecting tenants and maintaining fair business practices for landlords is crucial.
Disclaimer – Our team has carefully fact-checked this article to make sure it’s accurate and free from any misinformation. We’re dedicated to keeping our content honest and reliable for our readers.
