Oregon late fee laws for rent: three formulas to choose from

What must be true before an Oregon landlord charges anything?

Subsection (1) sets two conditions. The rent must not be received by the fourth day of the weekly or monthly rental period. And a written rental agreement must exist that states the tenant's obligation to pay a late charge, the type and amount of the charge, and the date rent is due along with the date or day late charges become due. A charge "however designated" is covered, so renaming it an administrative or processing fee does not escape the section.

What are the three formulas?

Subsection (2) says the amount may not exceed one of these, and the lease should name which one it uses.

1. A reasonable flat amount, charged once per rental period. "Reasonable" means the customary amount landlords charge in that rental market.
2. A reasonable per-day amount beginning on the fifth day of the rental period, accruing every day until the rent (not counting the late charge) is paid, through that period only. The daily charge cannot exceed 6 percent of the flat amount in the first formula.
3. Five percent of the periodic rent, charged once for each succeeding five-day period or portion of one, beginning on the fifth day and accumulating until the rent is paid, through that rental period only.

Example a made-up Oregon unit rents for $1,200, and the customary flat charge in that market is $50. Under formula 1 the charge is $50 once. Under formula 2 the daily charge is at most 6 percent of $50, which is $3.00 a day, so rent paid after twelve daily charges (the 5th through the 16th) means $36. Under formula 3 the charge is 5 percent of $1,200, which is $60 for each five-day period, so rent paid on the 17th falls in three periods (starting the 5th, 10th and 15th) for $180. The same late payment can cost $50, $36 or $180 depending on which clause the lease contains.

Does the fee roll into next month?

The words "through that rental period only" matter. Daily or per-period charges stop at the end of the rental period for which the rent is late. They do not carry over and compound against the next month's rent. Subsection (4) adds that you cannot deduct a late charge you already imposed from a later rent payment, which would make that later payment delinquent and open a second charge or a termination notice.

You may charge simple interest on an unpaid late charge at the legal judgment rate, running from the date the charge is imposed (subsection 5). Subsection (7) also treats a rent increase or decrease based on whether the tenant pays by a certain date as a late charge, so a "discount for paying on time" built into the lease is still covered by the rule.

Can unpaid fees be grounds for a nonpayment notice?

Not on their own. Subsection (6) says nonpayment of a late charge alone is not grounds for a termination notice for nonpayment of rent under ORS 90.394, though it can support a for-cause termination. You may note a late charge on a nonpayment notice only if the notice makes clear that the tenant can cure by paying just the delinquent rent, without the charge, within the allotted time. In periodic tenancies, you may change the type or amount of the charge by giving 30 days' written notice (subsection 3).

Which formula should a small owner choose?

For most small owners the flat amount is the easiest to administer and to explain. It is charged once, it does not grow, and tenants understand it at a glance. The daily formula rewards fast payment but needs a calendar each month, and the five-day formula can reach large totals on higher rents because it is a percentage of the full rent for every period.

Whichever you choose, the lease must say which one it is, because the statute asks the written agreement to specify the type and amount and the dates. Do not list two formulas and reserve the right to pick later; that leaves the tenant unable to know the charge in advance, which is the point of the requirement.

How DoorKeeping handles it in Oregon

Oregon's flat amount is a "customary in your market" test, which software cannot check for you, so DoorKeeping shows no dollar cap there. It does hold the fourth-day timing and the written-lease requirement, and a late fee rule posts automatically only after you approve it once. Rent is matched from your own bank. This is general information, not legal advice.

Sources

1. Oregon Revised Statutes chapter 90, ORS 90.260 (Oregon Legislature), read Oct 30, 2026

Questions

How long is the grace period in Oregon?

A late charge is allowed only if rent is not received by the fourth day of the rental period, and only if the written rental agreement says so.

Is there a maximum late fee in Oregon?

Not one number. The law allows a reasonable flat amount, a daily charge of up to 6 percent of that flat amount, or 5 percent of the rent per five-day period.

Can I evict a tenant in Oregon for not paying a late fee?

Not for nonpayment of rent. Unpaid late charges alone are not grounds for a nonpayment termination, though they can support termination for cause.