When Oregon announced that it was going to be the first state to enforce statewide rent control, many investors panicked. Most bristled at the idea of having government dictate what they could or could not do with their property. We did see a large percentage of multifamily owners in Lane County race to give tenants rent increases before the new law took effect—some by as much as $450 per month. Many of the investors who did so were out of the area and despite the fact that they had professional property managers managing the property, they had not kept pace with rents and needed to get them up to market before rent control went into place. Most of those investors are now selling their multifamily property in Eugene and using 1031 exchanges into triple net properties or commercial properties.

On the flip side I have many clients who own multifamily and feel that it is a safe investment. They believe it is a great place for them to put their money. Many investors plan to stay in the market and buy more units. I actually have a list of buyers who are currently looking to acquire more multifamily properties in Eugene. There are some good reasons for this, as Henry Manoucheri outlines in this article from National Real Estate Investor:

Making Rent-Controlled Properties Work for You

Communities around the country continue to push toward instituting rent control laws, creating an environment of political uncertainty that is driving many multifamily investors out of those markets. But there are investors who have opted to take on the challenge of buying rent-controlled properties, believing that if handled correctly, such properties offer great opportunity.

A few of the reasons rent-controlled properties can be attractive to investors are that their average price is lower, which can provide investors with the money needed for capital improvements. In addition, turnover among tenants tends to be lower, reducing the trouble and costs associated with finding and qualifying new tenants. As Manourcheri says:

So rent-controlled properties actually provide owners with a recession-proof revenue stream, providing a level of consistency market-rate buildings can’t guarantee.

Whether you are interested in buying or selling multifamily properties in Eugene or Springfield, call me. And if you have questions about rent control, please let me know. I want to be a resource for you during these changing times. Call me today: René Nelson, CCIM, CRE (541) 912-6583. rene@1031guru.com    www.eugene-commercial.com

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In this week’s roundup from Oregon Rent Control Central, we’re looking at the ways multifamily property investors may be affected by Oregon’s new rent control and eviction laws. René Nelson looks at the opportunity to use a 1031 exchange to move from a multifamily property into a commercial property, and exchange facilitator Rachel McLaughlin examines the 1031 exchange options available to multifamily property owners. Zoe York, MAI appraiser, discusses market trends and rent control with two- to four-unit properties. Real estate and property management attorney Brian Cox examines some strategies for increasing rents under the new law. Make Oregon Rent Control Central your go-to source for information about how Oregon Senate Bill 608 will impact multifamily property owners.

Zoe York, MAI Appraiser

Rent Control Oregon: Valuation of 2-4 Unit Multifamily Properties – Pacwest Commercial Real Estate

With the passage of Oregon Rent Control SB 608 many multifamily property investors are wondering about the potential value implications of the new law. Zoe York, MAI Appraiser with Duncan & Brown, discusses the impact of market trends and rent control on two-to four-unit multifamily properties in Eugene, Lane County, Oregon.

René Nelson, CCIM, CRE

Rent Control Oregon: Financial Benefits of a 1031 Exchange Multifamily Housing VS Commercial Property – Pacwest Commercial Real Estate

I love to empower investors to see their options and increase their financial freedom. Due to the impact of Oregon Senate Bill 608, many investors in Lane County, Oregon, may now want to use a 1031 exchange to make a switch from multifamily properties into commercial properties.

Rachel McLaughlin, Exchange Facilitator

Rent Control Oregon: Types of 1031 Exchanges – Pacwest Commercial Real Estate

If you’re considering selling multifamily property for commercial property due to Oregon Senate Bill 608, it is valuable to know the various 1031 exchange options available to you. Rachel McLaughlin, exchange facilitator with Cascade Title Company examines the different 1031 exchanges available to multifamily property owners.

Brian Cox, Real Estate and Property Management Attorney

Rent Control Oregon: What To Do After Senate Bill 608 – Pacwest Commercial Real Estate

Oregon Rent Control Senate Bill 608 introduces some major changes for landlords. Real estate and property management attorney Brian Cox examines some strategies for ways to increase rent. This is critical information for owners of multifamily properties. Learn the ins and outs of the new law.

“No investor should have to roll the dice on their financial freedom!™” When you are considering your options, get an expert on your team: René Nelson, CCIM, (541) 912-6583.

If you want more information about Oregon Rent Control SB 608, visit Pacwest Commercial Real Estate’s Oregon Rent Control Central for the latest information.

Disclaimer
Due to the complex nature of these changes, Landlords should contact an attorney with any questions or clarification of Oregon Rent Control SB 608.

In this week’s roundup from Oregon Rent Control Central, we delve into the potential impact of Oregon’s new rent control and eviction laws and how they might affect investors and their decisions. René Nelson discusses the steps multifamily property owners should take in advance of a 1031 exchange, and Rachel McLaughlin provides information about the three property identification rules for 1031 exchanges. Zoe York, MAI appraiser, looks at the history of market trends and explores gross rent multipliers (GRMs). Finally, real estate and property management attorney Brian Cox delivers some insight into managing troublesome tenants and handling rent increases in light of Oregon’s new rent control law. Consider Oregon Rent Control Central your most reliable source for information about how Oregon Senate Bill 608 will impact multifamily property owners.

Zoe York, MAI Appraiser

Rent Control Oregon: 2-4 Unit Value Change in Multifamily Housing – Pacwest Commercial Real Estate

Many multifamily property investors are wondering how Oregon Rent Control SB 608 may impact the value of their properties. Zoe York, MAI Appraiser with Duncan & Brown, looks at the history of market trends with multifamily properties in Eugene, Lane County, Oregon. Looking at gross rent multipliers (GRMs) is the way appraisers look things.

René Nelson, CCIM, CRE

Rent Control Oregon: Steps Every Multifamily Property Owner Should Take Before a 1031 Exchange – Pacwest Commercial Real Estate

If you’re starting to think about moving from multifamily properties into commercial real estate investment, it’s good to think ahead and understand the process in front of you. Understand your potential tax consequences, the value of pursuing a 1031 exchange, and the steps involved in preparing to list your multifamily property.

Rachel McLaughlin, Exchange Facilitator

Rent Control Oregon: Property Identification Rules – Pacwest Commercial Real Estate

Rachel McLaughlin, exchange facilitator with Cascade Title Company, looks at three property identification rules for a 1031 exchange. If you are considering selling your multifamily properties due to Oregon Senate Bill 608, discover what you need to know about 1031 exchanges. You do not have to follow all three rules; you choose the one that best fits your situation.

Brian Cox, Real Estate and Property Management Attorney

Rent Control Oregon: Senate Bill 608 Troublesome Tenants and Rent Increases – Pacwest Commercial Real Estate

Since there have been landlords, there have been troublesome tenants. It’s just a part of things. The new Oregon Rent Control Senate Bill 608 has an impact on how multifamily property owners can deal with these tenants.

Rent Control Oregon: Rent Increases and Tenant Screening – Pacwest Commercial Real Estate

Real estate and property management attorney Brian Cox discusses strategies for tenant screening, handling troublesome tenants, raising rent, and protecting yourself in light of the new Oregon Rent Control Senate Bill 608. Considering the strict guidelines for no-cause evictions and for rent increases, landlords have to carefully strategize to remain compliant and watch out for their own interests.

“No investor should have to roll the dice on their financial freedom!™” When you are considering your options, get an expert on your team: René Nelson, CCIM, (541) 912-6583.

If you want more information about Oregon Rent Control SB 608, visit Pacwest Commercial Real Estate’s Oregon Rent Control Central for the latest information.

Disclaimer
Due to the complex nature of these changes, Landlords should contact an attorney with any questions or clarification of Oregon Rent Control SB 608.

In this week’s roundup from Oregon Rent Control Central, we’re looking into the ways Oregon’s new rent control and eviction laws may affect investors. Hear from René Nelson on the benefits of commercial real estate investment and whether it might be time to consider options besides multifamily property investments. Zoe York discusses market trends and how rent control might impact the value of an under-rented residential multifamily property. Rachel McLaughlin provides information about 1031 exchanges and safe harbor rules. If you’re concerned about the new law’s effect on how you’ll manage tenants, Brian Cox has some answers about no-cause evictions. Consider Oregon Rent Control Central your most reliable source for information about how Oregon Senate Bill 608 will impact multifamily property owners.

Zoe York, MAI Appraiser

Rent Control Oregon: What could this mean for your Residential Multifamily Property – Pacwest Commercial Real Estate

Many residential multifamily property investors are wondering what rent control could mean for them in the wake of the passage of Oregon Rent Control SB 608. Zoe York, MAI Appraiser with Duncan & Brown, examines the market trends and how rent control might impact the value of an under-rented residential multifamily property.

René Nelson, CCIM, CRE

Rent Control Oregon: Moving out of Multifamily Housing and Investing in Commercial Property – Pacwest Commercial Real Estate

Many multifamily property investors are anticipating the impact of Oregon Senate Bill 608. In fact, a lot of investors are now considering making the switch to commercial real estate. René Nelson, CCIM, CRE with Pacwest Commercial Real Estate explores some of the benefits of commercial real estate investment.

Rachel McLaughlin, Exchange Facilitator

Rent Control Oregon: 1031 Exchange Safe Harbor Rules – Pacwest Commercial Real Estate

Rachel McLaughlin, exchange facilitator with Cascade Title Company, explains the ins and outs of 1031 exchanges. If you’re an investor in multifamily properties, you may want to consider a 1031 exchange into commercial property due to the new legislation about Oregon rent control.

Brian Cox, Real Estate and Property Management Attorney

Rent Control Oregon: Senate Bill 608 Laws Governing No Cause Evictions – Pacwest Commercial Real Estate

It’s important to educate yourself on the penalties built into the law governing no-cause evictions. Brian Cox, a real estate and property management attorney, looks at the penalties that are part of Oregon Rent Control Senate Bill 608. As a multifamily property owner, you need to know the law to protect yourself.

“No investor should have to roll the dice on their financial freedom!™” When you are considering your options, get an expert on your team: René Nelson, CCIM, (541) 912-6583.

If you want more information about Oregon Rent Control SB 608, visit Pacwest Commercial Real Estate’s Oregon Rent Control Central for the latest information.

Disclaimer
Due to the complex nature of these changes, Landlords should contact an attorney with any questions or clarification of Oregon Rent Control SB 608.

In this week’s roundup from Oregon Rent Control Central, we’re looking into the ways Oregon’s new rent control and eviction laws may affect owners of multifamily properties. Hear from René Nelson and Zoe York about the ways your property values and flexibility as a property owner may be affected. If you’re interested in making changes to the types of property you own, Rachel McLaughlin provides information about how a 1031 exchange may be advantageous. If the new law has you wondering about how you can manage situations with your tenants, Brian Cox examines no-cause evictions and the restrictions now in place. Make Oregon Rent Control Central your go-to source for information about how Oregon Senate Bill 608 will impact multifamily property owners.

Zoe York, MAI Appraiser

Rent Control Oregon: Potential Change to the Eugene, Lane County, OR, Market – Pacwest Commercial Real Estate

In the aftermath of the passage of Oregon Rent Control SB 608, Zoe York, MAI Appraiser with Duncan & Brown, takes a look at the impact of market trends and rent control on multifamily property cap rates and market value in Lane County, Oregon. Change takes time and it is dictated by the market.

René Nelson, CCIM, CRE

Rent Control Oregon: Market Trends for Multifamily Properties in Eugene and Springfield, OR – Pacwest Commercial Real Estate

Due to the passage of Oregon Rent Control Senate Bill 608, every multifamily real estate investor in Eugene and Springfield has decisions to make. Each person must decide what works for them, but should do so with an understanding of value and trends as well as what has occurred when rent control was implemented in other localities.

Rachel McLaughlin, Exchange Facilitator

Rent Control Oregon: Steps to a 1031 Exchange – Pacwest Commercial Real Estate

Rachel McLaughlin, exchange facilitator with Cascade Title Company, examines the reasons to do a 1031 exchange, the benefits, and the steps of a successful exchange. If you’re a multifamily property investor and considering a switch into commercial real estate as a result of Oregon Senate Bill 608, understand the options available to you with an exchange.

Brian Cox, Real Estate and Property Management Attorney

Rent Control Oregon: Senate Bill 608 No Cause Eviction Notice and Lease Terms – Pacwest Commercial Real Estate

As a multifamily property owner, know the law regarding no-cause convictions under the new Oregon Senate Bill 608. Real estate and property management attorney Brian Cox discusses the exceptions to the new law and everything you need to know. Empower yourself so you can manage your multifamily properties.

“No investor should have to roll the dice on their financial freedom!™” When you are considering your options, get an expert on your team: René Nelson, CCIM, (541) 912-6583.

If you want more information about Oregon Rent Control SB 608, visit Pacwest Commercial Real Estate’s Oregon Rent Control Central for the latest information.

Disclaimer
Due to the complex nature of these changes, Landlords should contact an attorney with any questions or clarification of Oregon Rent Control SB 608.

This week on Oregon Rent Control Central, we’ve got you covered on how your multi-family properties are affected by the new laws and how their value might change with René Nelson and Zoe York. If those changes have you looking to switch property types, Rachel McLaughlin explains what a 1031 exchange is to help you do that. And lastly, if you’re wondering about how this affects what you need to do for your tenants, Brian Cox discusses restrictions on no-cause evictions and what happens with leases under a property ownership switch.

Zoe York, MAI Appraiser

Rent Control Oregon: Potential Value Implications on Your Multifamily Property – Pacwest Commercial Real Estate

With the passage of Oregon Rent Control SB 608 many multifamily property investors are wondering about the potential value implications of the new law. Zoe York, MAI Appraiser with Duncan & Brown, looks at the recent trends we’ve seen in rents and occupancy for multifamily in Eugene Springfield.

René Nelson, CCIM, CRE

Rent Control Oregon: How Does Recent Legislation Affect Your Multifamily Property? – Pacwest Commercial Real Estate

It’s gratifying to help investors make the most of their real estate investments and financial freedom. With the passage of Oregon Senate Bill 608, I have already received phone calls from investors wishing to transition out of their multifamily property investments. There also seems to be an effect on out-of-state investors.

Rachel McLaughlin, Exchange Facilitator

Rent Control Oregon: 1031 Exchange Definitions – Pacwest Commercial Real Estate

Rachel McLaughlin, Exchange Facilitator with Cascade Title Company, looks into the benefits of a doing a 1031 exchange. She explains the terminology involved to help you become a more informed investor. In light of Oregon Senate Bill 608, know your options even if you don’t plan on making any changes right now.

Brian Cox, Real Estate and Property Management Attorney

Rent Control Oregon: Senate Bill 608 Restrictions on No Cause Evictions – Pacwest Commercial Real Estate

With the passage of Senate Bill 608, Oregon is now restricting no-cause evictions. This is a major change for landlords in the state. Real estate and property management attorney Brian Cox discusses the ins and outs of the changes multifamily property owners need to understand as a result of the new law.

“No investor should have to roll the dice on their financial freedom!™” When you are considering your options, get an expert on your team: René Nelson, CCIM, (541) 912-6583.

If you want more information about Oregon Rent Control SB 608, visit Pacwest Commercial Real Estate’s Oregon Rent Control Central for the latest information.

Disclaimer
Due to the complex nature of these changes, Landlords should contact an attorney with any questions or clarification of Oregon Rent Control SB 608.

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Strategies for Raising Rents

In situations where a tenant moves out (whether it’s for cause or because they have chosen to move on), your strategy should be to make changes in your contracts at that point. If you need to make major changes in the rent that you’re charging, that is the time. You’re probably raising your rent 3, 4, or 5 percent a year, so this 10.3 percent cap isn’t going to scare you at all.

Another strategy is if you’re going to do upgrades on your unit and the tenant can stay there, that doesn’t affect their tenancy under this bill. So it’s a good idea to bundle your renovations. But if you need to move the tenants out for the renovations because damage has rendered the unit unsafe or unfit to occupy, then that is a situation where you can give the tenants notice to move and you can ratchet your rent up if you’re undervalue.

If you want to make changes in your contract, offer (don’t require) people to enter into continued leases. You know, first year, hey do you want another year lease? Some tenants absolutely want to lease for a year because they want to know that you’re not going to kick them out, and a whole bunch of them aren’t going to know for a while that you can’t, so you can certainly offer them new leases. You can’t induce changes, but you can certainly lead the changes by simply offering. I suggested to a landlord that he can make some changes to his property or to the amenities being offered as an inducement to get people to change their leases.

Selling Your Rental Property

If you decide to sell your property, the law doesn’t require you to provide any notice to your tenants. You need your buyer to recognize that if there are tenants under lease, they’re still under lease. But if they’re under month-to-month tenancy and the new owner is going to occupy the property or half the property and the new buyer doesn’t have a comparable property to move that person into, that new buyer (or you on behalf of the new buyer) can give the tenants notice that they have to move.

There’s a time period to complete that. You have to do it within no later than 120 days after you’ve accepted the offer to purchase, so you want to ask those questions and know those answers. Are your buyers going to move into that duplex and do you have to give a 90-day notice to that tenant to make this work? And it’s only on a month-to-month tenancy. If you’ve got a tenant occupying that property and they’re only three months into a lease, they have nine more months to stay. You would have to notice them 90 days out.

If you don’t have any property up in Portland, you should look at these figures to get a sense of what things can look like when they get ugly. It was Portland that scared the legislature. People bought properties and rents going from $800 to $1800 and even more in a single transaction. As a result, now they have to pay tenants up to $4,500 in relocation costs depending on the size of the unit they had rented. I don’t know about your return on individual properties, but that would put a dent in any individual balance sheet.

If you need a real estate attorney, contact Brian Cox.

If you want to learn more about the impact of Oregon Senate Bill 608, visit Pacwest Commercial Real Estate’s Oregon Rent Control Central for the latest information.

Disclaimer
Due to the complex nature of these changes, Landlords should contact an attorney with any questions or clarification of Oregon Rent Control SB 608.

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Your maximum rental increase is 7 percent a year plus CPI. The published rate right now for CPI is 3.3 percent. The department of administrative service for Oregon will publish that (do the calculations easily here). Currently, no matter what your rent level is, you have a 10.3 percent cap on that increase. If you’re turning over because the tenant moved out by eviction, by voluntary moving, by their own termination notice, or because you gave those three warning notices, you can raise to whatever the market will bear. But if it’s a no-cause turnover, you just wanted to empty them out of that unit, and get them out of there, and either you’re going to pay them a month’s rent, or you don’t own four units, so you’re not going to pay them a month’s rent, you’re going to be capped on the next tenants too.

We’ve discussed delivery notices and the date they had to be delivered by. Month-to-month folks who were in their units had to be given a 30-day notice by February 28. Now, one of the things the law doesn’t answer is whether the 60-day notice went away. Because if you had a tenant who’s already been there a year, and you gave them a notice before February 28, you needed to give them a 60-day notice, and by my math, I don’t think you can jam 60 days in before March 30. So, if it’s under year, it was easy. If it’s over a year, I would not kick any of those folks out if they had lived there over a year, and you hadn’t given them a notice.

Strategies for Notices and Tenant Screening

So what can you do? One strategy is to provide written notice about everything. You can’t use the notices that you have on your computer. You can’t use the notices that you’ve been photocopying for the last 15 years. You’re going to need new notices, and you’re not going to get them yet unless you hire a lawyer. But if you wait about a month or two, they’ll be out there. These new notices, to be valid, have to inform people of the violation and what the law says about these violations. It has to say if you get three of these, we can give you a no-cause eviction notice. If it doesn’t say this magic language, it doesn’t work.

The other strategy has to do with screening tenants, because you’re going to keep a lot more tenants than you used to, and this is what I already hear my landlords telling me. Where I used to say, well, you know, he’s kind of a sketch guy, but he seems nice, and he’s trying to get ahead, and from his criminal history hasn’t committed any crimes this year. He’s held a job for three or four months, so I’m going to take a chance on him. I’m going to move him in, because if it doesn’t work, I can move him back out.

Now, you better make that decision during the first year, because if you don’t, that is your almost permanent guest. The strategy now is to to screen well, to notice violations, and to decide before one year passes. If you’re approaching that one year (remember it’s the first year, either the natural first year, or first year by reset in tenancy reconfiguration), don’t miss your chance to give them that non-renewal notice. Don’t forget the opportunity to tell them 30 days ahead of time that they’ve been disinvited from living there.

If you need a real estate attorney, contact Brian Cox.

If you want to learn more about the impact of Oregon Senate Bill 608, visit Pacwest Commercial Real Estate’s Oregon Rent Control Central for the latest information.

Disclaimer
Due to the complex nature of these changes, Landlords should contact an attorney with any questions or clarification of Oregon Rent Control SB 608.

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Before the new law we used to solve the problem of troublesome tenants by saying something like this: “You really didn’t create the kind of trouble where I had a statutory basis to kick you out, but man, all the other tenants hate you.” Or, “Man, I do know what those five-minute stops with 30 of your friends in an hour means.” Those are just two examples where you might decide to take action to move a tenant out without ruining their rental record, and to do that you’d give them a no-cause notice.

With the new law, that strategy no longer is available. Now you have to renew that lease or let it roll over into a month-to-month unless that tenant causes three separate violations during that 12-month period, and it’s a rolling 12 months. What you do is, at the third violation, you give them a 90-day notice that you’re not going to renew their tenancy. That tells them that now you don’t have to renew and you don’t have to pay. They just have to go at the end of that 90 days.

The type of violations you can give notices for are all the things that you’ve ever given notices before that are laid out in chapter 90: when people don’t pay their rent, when they have animals they’re not supposed to have, when they move somebody in who is not supposed to be there, when they’re not paying their late fees, the for-cause notices. All the different reasons why we could give people notices under statute fall into the count, and the notices don’t have to be the same three reasons. It could be any three reasons.

Using Notices as a Strategy for Troublesome Tenants

The other reasons are all the different ways our tenants violate their lease. With the new law my strategy for landlords is to start noticing your tenants for every violation. That doesn’t mean you need to terminate them, but it means you’ve got yourself locked and loaded, and if you want to terminate them, that choice is available to you. This goes against my personal belief system, but it’s an unintended consequence of this new law.

The biggest single opportunity that comes to mind is rent payments. If you have a number of properties, I’m going to guess that probably half your tenants actually pay by the first day of the month and most of the tenants pay before they hit the late fee, the fifth day of the month. But their rent is due on the first day. If that tenant doesn’t pay by the first, you give them a warning notice on the second. Three notices within 12 months, they’re now eligible for a no-cause eviction notice. In this case, it works.

You have limitations on giving these people notices. Your right to give no cause, unless it resets, for some reason, like you change a configuration of the housing, they change it. And I don’t mean when the kids move out. I mean when the tenants on the contract change. Those are examples of how the Senate bill changes things. For most people, if you have stable housing, it doesn’t change a lot of problems except for the folks maybe you wanted to move out who create the weird problems or too much noise at night or make all your neighbors mad.

The other part of the Senate bill is how it affects your ability to raise rent. There are several parts to this, and one is that you can only do rental raises once a year with your existing tenants, and you can only do rental raises at rollover, at a turnover from tenant to tenant when you didn’t create that turnover yourself by giving a no-cause eviction notice. In other words, you can’t create your own situation to get outside of the rent cap.

I talk with many property owners who have tenants paying four, five, six hundred dollars under market; this happens quite a lot. There are two main reasons. One sounds like this: “Hey, she’s a great tenant. She’s been there for 10 years. I never have to touch the unit. I’m going to rent to her at the same rent I gave it to her 10 years ago.” The other way it happens, is like this: “Hey, we had a whole deck collapse and I had to exclude the tenant from the backyard, so we knocked their rent down for $500 a month. We just built a new deck. We’d like to raise the rent back up $500 to market. Can I do that?” Someone called me with a scenario like this. And the answer was no. They started the deck before they knew about rent control.

You have to plan your rent adjustments. If your property is already properly marketed and rented now, then the 10.3 percent is not going to get in your way of making a good return on your property. But if it’s not, then it could be an issue.

If you need a real estate attorney, contact Brian Cox.

If you want to learn more about the impact of Oregon Senate Bill 608, visit Pacwest Commercial Real Estate’s Oregon Rent Control Central for the latest information.

Disclaimer
Due to the complex nature of these changes, Landlords should contact an attorney with any questions or clarification of Oregon Rent Control SB 608.

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Details are important here, because if you do something wrong with regard to eviction, there are penalties built into the law. One of the penalties is up to a year after a tenant has moved out, whether you violate notices for evictions or you violate the rent increases, they can sue you.

Think about that tenant who couldn’t find replacement housing and had to trade up and spend two or three hundred a month more than they did in your unit. They can make you pay that difference. They can make you pay their attorney’s fees. You don’t want this to happen. Those are the things that clients come talk to me about.

Fixed-Term Tenancy

So that fixed-term tenancy that you have, pay attention to what you need to do if you don’t want those tenants during the first year. I’m referring to people who were in lease before February 28 this year or any of the people who move in after February 28. Now I left out the group in the middle of the existing tenancies that change. But for those folks, if you don’t do anything, their lease automatically becomes a month-to-month. You can offer them a new lease, you can’t make them move into a new lease. So you lose some of your ability, in my view, to make some of the changes that we used to recommend should occur if you want to change the terms of your lease with existing tenants, because that tenant now can just simply say the heck with you. I’m not doing that. I’m going month-to-month. And you can’t make them go, because after they have been there outside of their first year of tenancy, you can’t give them a no-cause eviction notice in most situations.

If you have a tenant who is under a lease now, or if you have a tenant who was under a month-to-month and you didn’t give him a notice, they’re going to stay and you’re no longer able to give them a no-cause notice. But if you have new tenants coming in or if you have tenants under existing leases, you get to live together for a year before you decide whether you want to get married or not. And those are the folks you want to decide whether you want to keep them. If you don’t want to keep them, give them notices. Of course, I am operating from the premise that our rental properties are income producing. They are investments and the best way we earn income from those investments is by keeping them occupied. This idea that landlords want to kick tenants out is bizarre to me because very few landlords want to kick their tenants out.

If you need a real estate attorney, contact Brian Cox.

If you want to learn more about the impact of Oregon Senate Bill 608, visit Pacwest Commercial Real Estate’s Oregon Rent Control Central for the latest information.

Disclaimer
Due to the complex nature of these changes, Landlords should contact an attorney with any questions or clarification of Oregon Rent Control SB 608.