Consequences of Paying Rent Late in Oregon

Paying rent late in Oregon can cost you money--and possibly your tenancy.

Your lease or rental agreement and Oregon state law are the key places to look for answers to this question. Basically, if you pay rent late, you may be hit with a late fee and possibly face the termination of your tenancy. To avoid problems, know when your rent is due and pay it on time.

Read the Rent and Termination Clauses in Your Lease or Rental Agreement

Look for a clause called Payment of Rent, or something similar. Basically, you want to find out the following:

  • the date that rent is due—this is usually the first of the month (and this is the date the landlord receives your rent payment, not the date that the envelope with your mailed rent check is postmarked)
  • what happens if the first of the month falls on a weekend or holiday (your lease may give you until the next business day to pay rent)
  • whether or not you have a grace period before rent is considered late, and
  • whether or not your landlord will charge you a late fee (and how much) if you don’t pay rent on time. Oregon law (Ore. Rev. Stat. § § 90.260) sets limits on late fees. For example, your landlord must wait four days after the rent due date before imposing a late fee, and must disclose the late fee policy in the rental agreement. A flat fee must be “reasonable.” A daily late fee may not be more than 6% of a reasonable flat fee, and cannot add up to more than 5% of the monthly rate.

You’ll also want to check what your lease says regarding the landlord’s right to terminate your entire tenancy if you pay rent late. Unfortunately, many lease and rental agreements don’t spell this out, but simply include a general clause called something like Grounds for Termination of Tenancy, that states that if you fail to comply with a term of your agreement the landlord may terminate your tenancy under rules and procedures required by law. Read on to find out what these rules and procedures are in Oregon.

Understand Tenant Rights Under Oregon Laws on Termination for Nonpayment of Rent

If you have not paid the rent on time, under state law in Oregon (Ore. Rev. Stat. § § 90.394(2))(a) and 90.394(2)(b)),  your landlord has a choice: 1) your landlord may serve you a pay or quit notice after rent is eight days late, giving you 72 hours (three days) to pay rent or quit; or, 2) your landlord may serve the notice earlier, after rent is overdue five days (in which case, you have longer—144 hours (six days)—to pay rent  or quit).

More Information on Tenant Rent Rights in Oregon

For details on other Oregon rent-related laws, such as the amount of notice a landlord must give to raise the rent, see the Nolo article on Oregon rent rules. And if you simply can’t pay rent on time, consider other options, such as trying to negotiate a partial rent payment. See the Nolo article What to Do and Not to Do if You Can’t Pay Rent on Time for advice.

Finally, keep in mind that you if you constantly pay rent late, and you have a month-to-month rental agreement, your landlord may decide to simply terminate your tenancy with the required amount of notice (30 to 60 days in Oregon, depending on factors such as how long you’ve lived in the rental), rather than deal with the hassle of regularly sending you late rent notices. And even if your landlord does not terminate your tenancy, don’t expect a great reference from your current landlord when you move on to a new apartment.

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