Oregon law stipulates the order in which the rent payment must be applied.

It’s a simple process - you sign a lease with a tenant, then you start collecting rent. In some states there are statutes that govern the rent collection process that a landlord needs to be aware of, and Oregon is one of those states. To begin with, rent is due on the first business day of the month and late if not received by the fourth day. The landlord has the right to refuse an untimely rent payment or a rent payment that is less than the full amount owed.

Application Of Payment

Oregon law stipulates the order in which the rent payment must be applied:

  1. Outstanding rent from prior rental periods.
  2. Rent for the current period.
  3. Utility or service charges.
  4. Late rent payment fees.
  5. Fees or charges owed by tenant related to damage claims or other claims against the tenant.

Fees

There are several types of fees that a landlord in Oregon can charge the tenant:

  • Late Fee. Cannot exceed 5% of the monthly rental amount, per O.R.S. § 90.260.
  • NSF Fee. Cannot exceed $35 plus any amount the bank charges landlord for processing the returned payment, per O.R.S. § 30.701.
  • Alarm Tampering Fee. Any reasonable amount up to $250 if the tenant removes or tampers with a functioning smoke alarm, smoke detector, or carbon monoxide alarm, per O.R.S. § 90.302(2).
  • Noncompliance Fee. May charge a minimum of $50 for the second noncompliance or for a subsequent noncompliance with a rental agreement term or written rule or policy, per O.R.S. § 90.302(3)(a).

Prepaid Rent

Oregon law allows the landlord to accept prepaid rent as part of the security deposit. In the case of prepaid rent, the landlord must use the portion of the security deposit designated as “prepaid rent” for the last month’s rent payment.