Oregon state has various laws regarding the use of rental applications. If your document is not compliant with OR law, you may get sued by the applicant and face legal consequences.
Application Fee
In Oregon, there is a state limit on rental application fees. OR Landlords cannot charge tenants more than average actual cost of screening applicants as an application fee (§ 90.295). This amount is non-refundable.
Security Deposit
Oregon doesn’t set any limits on how much you can charge as a security deposit (§ 90.300). However, it is recommended not to charge more than 1-2 months rent for this amount.
Housing Discrimination Law
Oregon has no specific statutes policing housing discrimination. Nevertheless, the Fair Housing Act (FHA), is enshrined in federal law meaning that landlords may not refuse a tenant for discriminatory reasons.
Under the FHA you may not reject a tenant application for reasons such as their race, religion, sex, family status, or because they have any disabilities. You may also not discriminate against their criminal history (whether or not a background check is carried out) or nationality.
As a consequence, you are not allowed to ask for any of these details on an OR Rental Application form, nor to include them in the decision-making process. However, in Oregon, certain exemptions from fair housing laws exist. These are as follows:
- Sex/sexual orientation: laws relating to discrimination against sex or sexual orientation do not apply to single-family residences where the owner is an occupant, and they will share a common area with the tenants.
- Housing for older persons: it is allowed to ask for an applicant’s age for age-restricted communities "Housing for Older Persons".
- Familial status: landlords may ask whether children will occupy the premises for two-family owner-occupied buildings.
- Private clubs: clubs that do not operate publicly and do not rent for commercial purposes can give preference to certain applicants (U.S. Code § 3607).
- Religious organizations: religion can be used as a basis for giving priority to certain applicants for properties that are owned or managed by a religious organization that does not rent with commercial intent (U.S. Code § 3607).
- Mrs. Murphy exemption: dwellings with four units or fewer, in which one unit is occupied by the owner, and where the landlord is not represented by a real estate agent, are exempt from fair housing requirements.
Notice of Eligibility
Potential tenants must be informed about the screening criteria and reasons for possible denial or approval in advance. To prove that this information has been shared, a signature of acknowledgment must be provided within the application or alongside it.
Consent Credit Check
Within Oregon, federal law is in effect that requires potential renters to provide written consent for a credit history check during the application process. This is known as the Federal Credit Reporting Act (FCRA).