Cash Still Counts: What Oregon’s SB 1523 Means for How Portland Landlords Collect Rent

As we’ve discussed in previous posts, technology has changed almost every part of property management. Owners can advertise vacancies online, screen applicants in minutes, collect rent through mobile apps, and communicate with tenants without ever printing a piece of paper. The benefits are obvious, but they don’t come without some drawbacks for people with limited access to technology.

In that vein, Oregon lawmakers have made it clear that convenience can’t come at the expense of accessibility. Senate Bill 1523, which took effect on June 5, 2026, requires residential landlords to offer tenants a non-digital way to pay rent and complete certain parts of the rental process. If your rental business has become completely dependent on online portals, now is the time to review your policies.

Why Oregon Passed SB 1523

Property management software has become the standard across the rental industry. Most landlords appreciate the ability to automate rent reminders, collect payments electronically, and maintain digital records that are easy to access.

Still, not every tenant has the same level of comfort with technology. Some renters don’t have consistent internet access, while others may have disabilities or simply prefer handling financial matters with paper checks. Lawmakers determined that requiring every tenant to use an online payment portal created unnecessary barriers for some Oregon residents.

SB 1523 doesn’t discourage landlords from using technology. Instead, it ensures that tenants have a practical alternative when digital tools aren’t the right fit. Landlords can still encourage electronic payments, but they can no longer be the only option.

What the Law Requires

The biggest takeaway is simple: landlords cannot require tenants to pay rent exclusively through electronic methods such as online portals, debit cards, or credit cards. Instead, landlords must allow tenants to pay by check or another commercially reasonable payment method.

The law also extends beyond monthly rent. If a landlord uses an online portal during the application process, applicants who request an alternative must have access to a non-digital option instead of having to complete everything electronically.

For many landlords, these changes won’t require a major overhaul. If you’ve continued accepting paper checks over the years, you may already comply with much of the law. Owners who moved entirely to digital payments, however, should update their procedures before assuming their current system satisfies Oregon’s requirements.

The Protection Landlords Can’t Afford to Ignore

Suppose a tenant mails a rent check that arrives on time and otherwise satisfies the lease requirements. If the landlord refuses to accept that payment simply because they want all tenants to use an online portal, the law limits the landlord’s ability to treat the rent as unpaid.

Specifically, a landlord who rejects a valid check payment cannot charge late fees based on that refusal or pursue termination of the tenancy for nonpayment. That means the landlord’s own actions could eliminate remedies that would normally be available if rent truly had gone unpaid.

For owners who rely on automated payment systems, overlooking this detail could become expensive if an eviction or legal dispute reaches court.

Review Every Document That Mentions Rent Payments

Many landlords focus on updating the lease itself, but that’s only one piece of the puzzle. Payment instructions often appear in welcome packets, tenant handbooks, renewal notices, automated emails, online portal instructions, and office policies. If any of those materials still tell tenants that electronic payment is mandatory, they should be updated to reflect the new law.

Conflicting instructions create confusion, and that may impact your ability to collect rent on time. A tenant who receives one message in the lease and another through the payment portal may reasonably question which policy they should follow. Eliminating those inconsistencies now reduces the likelihood of misunderstandings later.

Don’t Overlook the Application Process

SB 1523 also affects how landlords handle rental applications when electronic systems are involved. Many property managers now require prospective tenants to submit applications through an online platform, but under the new law, applicants who request a non-digital alternative must be given one within three days. That could mean providing a paper application or another reasonable method that doesn’t require using the online portal.

This requirement may seem minor, yet it becomes important during busy leasing seasons. Having printable application forms readily available allows your staff to respond quickly without scrambling to create an alternative after someone makes the request.

The Cost of Getting It Wrong

Many landlord disputes begin with relatively small misunderstandings that grow into much larger problems. For example, imagine rejecting a tenant’s rent check because your office prefers online payments. The tenant believes they paid on time, while your accounting system shows no payment because the check wasn’t accepted. That disagreement can quickly escalate into late fee disputes, notices for nonpayment, and potentially expensive litigation.

Beyond attorney fees and court costs, landlords also spend valuable time responding to complaints, gathering documentation, and managing the stress that accompanies legal proceedings. Those costs often exceed the effort it would have taken to update payment policies in the first place.

Oregon’s landlord-tenant laws are ever-changing, and courts reasonably expect property owners to understand the rules that govern their rental business. Ignorance of the updated laws will not protect your business from legal consequences for not following them.

Staying Ahead of Oregon’s Changing Laws

Over the past several years, Oregon landlords have adapted to new regulations involving screening criteria, security deposits, notices, rent increases, and local compliance requirements. SB 1523 adds another item to that growing list, but it doesn’t have to create unnecessary headaches.

The key is taking a proactive approach instead of waiting until a tenant raises the issue, and working with professionals when you need some extra help staying compliant. For years, Rent Portland Homes Darla Andrews Office has stayed on top of Oregon’s changing rental laws so our clients don’t have to navigate every legislative update on their own.

If you’re unsure whether your leases, payment procedures, or rental policies comply with current Oregon requirements, our experienced team can help you protect your investment while providing tenants with a professional rental experience that follows the law. To hear more about what our team can do for you, call (503) 515-3170 or reach out on our website.