On April 11, 2025, the Oregon State Legislature introduced House Bill 3521, aimed at reforming the handling of security deposits in rental agreements. The bill seeks to enhance tenant protections by mandating that landlords return security deposits within five business days of a tenant's request, a change from the previous four-day requirement. This adjustment is designed to provide tenants with quicker access to their funds after moving out.

Key provisions of the bill include stipulations that landlords must either make the deposit available at their business location or mail it to the tenant via first-class mail. If landlords fail to comply with these requirements, tenants are entitled to recover the amount of the deposit along with a penalty. This penalty is set at the greater of the deposit amount or a mutually agreed-upon figure, provided the delay in repayment was not due to an act of God.

The bill has sparked notable discussions among lawmakers and stakeholders. Proponents argue that the legislation is a necessary step to protect tenants from potential financial strain during the transition between residences. Critics, however, express concerns about the potential burden on landlords, particularly smaller property owners, who may face challenges in meeting the new timeline for deposit returns.

The implications of House Bill 3521 extend beyond immediate financial concerns. Economically, the bill could influence rental market dynamics in Oregon, potentially making it more attractive for tenants while raising operational considerations for landlords. Socially, it reflects a growing trend towards tenant rights advocacy, aligning with broader movements across the country aimed at improving housing stability.

As the bill progresses through the legislative process, its future remains uncertain. Experts suggest that if passed, it could set a precedent for similar legislation in other states, further shaping the landscape of tenant-landlord relations nationwide. The amendments proposed in HB 3521 are set to apply to deposits received on or after January 1, 2026, marking a significant shift in Oregon's rental regulations.