Oregon Rent Control Senate Bill 608 On to Full Vote
Despite Landlord Group Protests Bill 608 Moves Forward
Landlords gave testimony in protest of the unprecedented Statewide Rent Control Bill 608. Many are concerned that the legislation will limit new rental housing starts and discourage real estate investment in Oregon.
Hog Tying Landlords?
“How in the world do people think punishing landlords and placing a cap on earnings is a good idea? It’s akin to placing a ceiling on your wages. If you go to college and earn a degree, you’d likely earn more than you did before. Now, if I want to better living conditions and improve my property, I can not afford to do so. It’s just not right.”
Here’s What Oregon Senate Bill 608 Will Do
- Prohibits a landlord from terminating month-to-month tenancy without cause after 12 months of occupancy. Provides exception for certain tenancies on a building or lot used by a landlord as residence.
- Allows a landlord to terminate tenancy with 90 days’ written notice and payment of one month’s rent under certain conditions. Exempts landlord managing four or fewer units from payment of one month’s rent.
- Provides that fixed-term tenancy becomes month-to-month tenancy upon ending date if not renewed or terminated.
- Allows landlord to not renew fixed-term tenancy if tenant receives three lease-violation warnings within 12 months during term and landlord gives 90 days’ notice.
- Limits rent increases for residential tenancies to one per year.
- Limits maximum annual rent increase to 7 percent above annual change in consumer price index.
- Requires Oregon Department of Administrative Services to publish maximum annual rent increase percentage.
- Declares emergency, effective on passage.
Oregon rent control bill 608 will not have the impact it intends. In fact I believe it will increase rents at a faster rate than before. This will happen because Senate Bill 608 requires a once a year increase and sets a limit on the amount of that increase. Every landlord who held back on systemattic rent increases, will now be forced to increase rent or wait another year to do so.
Removing the no cause eviction provision will eliminate the ability to safely and efficiently remove a tenant that harrasses neighboring children and the public or causes a nusence. I believe this will increase in court evictions and the expense that comes with that.
We have successfully navigated the City of Portland and their version of rent control over the past couple of years. We will do the same here and in correctly doing so, increase the return on your investment. In my opinion Senate Bill 608 as written will not hamper our ability to provide you with a solid return on your investment. Now more than ever you need professional property management. Tenant selection has always been important. Now it is critical to your success. Contact us, we’ll keep you compliant and keep your investment profitable.