RE: Oregon State Legislature 2019 – Senate Bill 608
There are several new bills that have passed and we all should be aware of them in order to prevent misunderstandings and/or costly mistakes. Below are specifics of the recently passed Senate Bill that will limit owner’s ability to raise rents and make Oregon the first state in the country to have statewide caps on rent increases.
MONTH TO MONTH TENANCIES
No-cause evictions are only allowed by law for the first 12 months of residency. After the first year of tenancy, Landlords can only evict for cause. Example: The tenant must be in violation for rules or non-payment. There are 4 Landlord based reasons that can be used for eviction as well, but it is required that the tenant receive 90 days’ notice and receive a relocation fee equal to one month’s rent by the landlord.
*Relocation fee is not required if landlord has an ownership interest in four or fewer residential dwelling units.
FIXED TERM TENANCIES
A fixed term tenancy will automatically convert to a month to month tenancy on expiration unless-
The fixed term lease expires before the end of the first year of occupancy and a 90 day notice to end tenancy at the end of the fixed term is given.
After the first year of occupancy, with 90 days’ notice to end the tenancy at the end of the fixed term, only if the tenant has committed three or more lease violations in the last 12 months.
RENT INCREASES
Landlords may increase the rent NO MORE than 7% plus CPI (Consumer Price Index) in a 12-month period or in between tenancies.
Exceptions
- New construction- there is no restriction on annual increases for the first 15 years after certificate of occupancy.
- The previous tenant vacated the property voluntarily or moved because of a rule violation or non-payment of rent or eviction, the landlord may reset the rent between tenancies with out limitation.
- Subsidized housing- if landlord is providing reduced rent as part of a federal, state or local program.
*If a landlord violates these new provisions, they are liable for three months’ rent plus actual damages.