Oregon applicant screening charge law: actual cost, once per 60 days and written criteria first
ORS 90.295 lets a landlord charge an applicant only to cover the cost of screening, only once in any 60-day period, and only after adopting written criteria and giving the applicant a detailed notice. A refund is due in 30 days if the unit fills or the applicant withdraws before screening.
How much and how often?
Subsection (2) says the charge must not be greater than the landlord's average actual cost of screening applicants, or the customary amount that tenant screening companies or consumer credit reporting agencies charge for a comparable level of screening. Actual costs can include the cost of using a screening company and the reasonable value of the landlord's or agent's time in otherwise obtaining information.
Subsection (1)(b) allows only a single screening charge within any 60-day period, no matter how many units the landlord owns or manages that the applicant applies for. The landlord must give a receipt for the charge, and promptly after each screening done by a screening company or credit reporting agency, provide the applicant with confirmation, including a copy of the company's receipt.
What must happen before you take the charge?
Subsection (3) says you may not require payment unless, beforehand, you adopt written screening or admission criteria, give written notice of a list of items, and give actual notice of an availability estimate. The written notice must include:
- The amount of the screening charge and your screening or admission criteria.
- The process you typically follow, including whether you use a screening company, credit reports, public or criminal records, or contact employers, landlords or references.
- The applicant's right to dispute information from a screening company, and any right to appeal a negative decision.
- Your nondiscrimination policy, including source of income.
- The rent, deposits, and any renters liability insurance requirement.
- The applicant's right to a refund and to recover damages.
The availability estimate must be your best estimate of the approximate number of units of the type and area sought that are or will soon be available, including the number of applications already accepted and under consideration. A good faith error in that estimate does not support a claim. Under subsection (4), unless the applicant agrees in writing, you may not require the charge when you know or should know no unit is or will be available within a reasonable time.
Refunds and damages
Subsection (5) requires a refund within 30 days if you fill the vacant unit before screening the applicant, or have not conducted or ordered any screening before the applicant withdraws the application in writing. Under subsection (6)(a), an applicant who refuses an offer to rent cannot recover the charge. Under (6)(b), the applicant may recover twice the amount paid plus $250 if the landlord fails to comply with the section, or does not screen the applicant for any reason and fails to refund within 30 days.
Example a made-up applicant pays a $40 charge. The landlord fills the unit before ordering any screening and does not refund. The applicant could recover twice $40, which is $80, plus $250, for $330.
What about a holding deposit?
ORS 90.297 forbids any other deposit or fee from an applicant. A deposit to secure execution of a rental agreement is allowed only after approving the application and before signing, with a written statement of the rent, fees and deposits, the terms of the agreement to execute and the conditions for refund or retention. If the lease is signed, you apply it to money due or refund it immediately. If the landlord fails to carry out the agreement, the deposit is returned within five business days, with a penalty for late repayment.
Oregon in DoorKeeping
DoorKeeping will not let an Oregon application link take a charge until the criteria, notice items and availability estimate are filled in, and it stores the receipt and the 60-day date for each applicant. Tenants never pay a fee to DoorKeeping. Screening is passed through at cost. DoorKeeping never holds your money and sends a payment only when you approve it. This is general information, not legal advice. Check the current statute or ask a local attorney before you rely on it.
Sources
Questions
- How much can an Oregon landlord charge for screening?
- No more than the landlord's average actual cost, or the customary amount screening companies charge for a comparable level of screening, once in any 60-day period.
- When must an Oregon screening charge be refunded?
- Within 30 days if the landlord fills the unit before screening, or the applicant withdraws in writing before any screening is ordered.
- What is the penalty in Oregon?
- Twice the amount of the charge plus $250 for noncompliance or for failing to refund when required.