Senate Bill 611: Changes to Maximum Allowable Annual Rent Increases

2023 has been a tough year for Oregon tenants as rents continue to increase statewide. In a move to curb rising rental costs and protect the rights of tenants, Governor Kotek has signed Senate Bill 611.

This bill introduces significant changes to how the maximum allowable annual rent increase percentage is calculated for residential tenancies in the state.

In this article, we will break down SB 611 and provide more information so that housing providers and tenants both know how it will affect Oregon’s rental market.

Understanding SB 611

Under SB 611, the maximum allowable annual rent increase percentage is calculated based on two criteria. The landlord must adhere to the lesser of the following:

Ten percent; or Seven percent plus the September annual 12-month average change in the Consumer Price Index for All Urban Customers.

This calculation ensures that landlords cannot impose exorbitant rent increases on tenants and provides a fair and reasonable approach to balancing the interests of both parties.

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There Will Be Limitations on Rent Increases

SB 611 also introduces limitations on how often a landlord can increase the rent during a tenancy. Apart from week-to-week tenancies, landlords are now prohibited from increasing the rent more than once within any 12 months. This provision aims to provide stability and predictability for tenants, ensuring that they are not subjected to frequent and potentially unaffordable rent hikes.

Effective Immediately

It is essential to note that SB 611 took effect immediately upon Governor Kotek’s signature. As such, it applies to all notices of rent increase delivered on or after July 6, 2023. Landlords and tenants should familiarize themselves with the new legislation and ensure compliance with its provisions.

In addition to the changes introduced by SB 611, it is worth noting that the bill seeks to address the issue of affordable housing and the challenges faced by renters in the current market. By implementing stricter regulations on rent increases, the aim is to create a more stable and affordable rental market for tenants across the state.

Conclusion

Senate Bill 611 brings significant changes to the calculation of the maximum allowable annual rent increase percentage for residential tenancies in the state.

By introducing limitations on rent increases and providing a fair calculation method, the bill aims to protect tenants from excessive rental costs while ensuring landlords can still maintain their investments. Housing providers and tenants must familiarize themselves with the new legislation and seek legal guidance when needed. With the implementation of SB 611, the state takes a step towards creating a more stable and affordable rental market for all parties involved.

While SB 611 outlines the key changes to maximum allowable annual rent increases, housing providers and tenants must seek legal advice for specific situations. Consulting a legal professional, or property manager, can help clarify any uncertainties and ensure that both parties understand their rights and obligations under the new legislation.

Thankfully, working with a licensed property manager like 4 Rent Local can help because, a property manager stays on top of the changing rental market, including the latest laws, so owners can rest easy and enjoy passive income.

To learn more about the property management services that we can offer you, contact us today by calling (503) 447-7788 or click here to connect with us online.

 

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Tips For Creating An Effective Late Rent Notice

As a landlord, collecting rent on time, and writing a late rent notice, are keys to managing your rental property. However, sometimes tenants fall behind on rent payments and it is important to know how to handle late rent notices. In this blog article, we will discuss how to craft an effective late rent notice to maximize your chances of prompt payment from your tenants.

What is a Late Rent Notice?

A rent notice is a letter used by landlords to notify tenants of a past-due rent payment. The notice typically serves as a reminder to the tenant to make the payment as soon as possible. It also serves as a warning that further action may be taken if the rent payment is not made within a certain period.

The late rent notice should be written in a professional, courteous manner. It should contain clear instructions on how the tenant can make the payment and the consequences of not paying by the due date.

When to Send a Late Rent Notice

It is important to know when to send a late rent notice. Generally, the notice should be sent as soon as the rent payment is past due. Depending on the terms of the lease agreement, the landlord may choose to give the tenant a certain number of days (for example, 5 or 10 days) to make the payment before taking further action.

It is also important to note that some states have laws that require landlords to give tenants a certain number of days to make the payment before taking any action. It is important to check the laws in your state before sending out a rent notice.

Crafting an Effective Late Rent Notice

When crafting an effective late rent notice, it is important to make sure that the letter is clear and professional. The notice should include the tenant’s full name, the amount of rent due, the date the rent was due, and the date the rent notice was sent.

The letter should also explain the consequences of not paying rent by the due date. For example, the letter may state that the tenant will be subject to late fees or that further action may be taken if the rent is not paid by the due date.

Finally, the letter should include information on how the tenant can make the payment, such as the address of the rental property or the landlord’s bank account information.

The Benefits of Sending a Late Notice

Sending out a late rent notice can be beneficial for both the landlord and the tenant. For the landlord, it can help ensure that the rent is paid promptly and can avoid costly late fees or other costs associated with the tenant not paying rent.

For the tenant, the rent notice serves as a reminder to make the rent payment on time. It can also help the tenant avoid any potential legal action that may be taken by the landlord if the rent is not paid by the due date.

Late Rent Notice Templates

Many late rent notice templates are available online that can be used to draft an effective late rent notice. These templates typically include all of the necessary information required for the notice, such as the tenant’s name, the amount of rent due, the date the rent was due, and the consequences of not paying rent by the due date.

The templates can be customized to fit the needs of the landlord and the specific rental agreement. For example, the landlord may choose to include a late fee for past due rent or specify the amount of time the tenant has to make the payment before taking further action.

Late Rent Notice Strategies

When drafting a late rent notice, it is important to consider the specific situation and the tenant’s ability to pay. If the tenant is in a difficult financial situation, it may be beneficial to offer an extended payment plan or other options to help them get back on track.

It is also important to consider how the late rent notice will be received. The letter should be courteous and professional, and should not include any threats or insults.

Finally, it is important to remember that the late rent notice is a reminder to the tenant that the rent is due and should be taken seriously.

Tips for Writing an Effective Late Rent Notice

When writing a late rent notice, it is important to keep the following tips in mind:

  • Be clear and concise. Make sure that the letter is easy to understand and contains all of the necessary information.
  • Be professional. The letter should maintain a courteous and respectful tone.
  • Include a clear explanation of the consequences of not paying rent by the due date.
  • Include information on how the tenant can make the payment.
  • Consider the tenant’s financial situation and offer an extended payment plan if necessary.

How to Send a Late Rent Notice

Once the late rent notice has been drafted, it should be sent to the tenant in one of the following ways:

  • By mail. The notice should be sent via certified mail or with a return receipt requested. This will ensure that the tenant receives the notice and that it can be tracked.
  • By email. The notice can be sent via email with a read receipt requested.
  • In person. The notice can be handed to the tenant in person or sent via a third-party delivery service.

Legal Considerations for Late Rent Notices

It is important to have a clear understanding of the laws in your state regarding late rent notices. Many states have specific laws that govern the collection of rent, including the amount of time that landlords have to give tenants to make the payment before taking further action.

It is also important to note that some states have laws that prohibit landlords from threatening tenants with eviction or other legal action if they do not pay rent by the due date. It is important to check the laws in your state before sending out a late rent notice.

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Late rent notices are an important tool for landlords to ensure that tenants are paying rent promptly. Crafting an effective late rent notice is key to maximizing your chances of prompt payment. It is important to be clear and professional in the letter and to include all of the necessary information. It is also important to consider the tenant’s financial situation and to adhere to the laws in your state. By following these tips and using a late rent notice template, you will be able to craft an effective late rent notice that will maximize your chances of prompt payment.

At 4 Rent Local, we’re experts at property management and our team will save you the time, money, and hassle of managing your rental properties yourself.

To learn more about the property management services we can offer you, contact us today by calling (503) 447-7788 or click here to connect with us online.

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Landlord-Tenant Law Oregon 2022-2023 Guide

Are you planning on investing in rental property? Like most investors, you’re probably interested in learning more about landlord-tenant law in Oregon for 2022-2023.

This is understandable because the rental market has changed in the last two years and landlords have fewer rights than before.

Thankfully, we’ve compiled an updated resource on landlord rights in Oregon so that you know what to expect before investing in a rental property here.

Landlord-Tenant Law 2022-2023

Under Oregon law, landlords must disclose specific information to tenants (usually in the lease or rental agreement). The list of required disclosures is long and includes information on topics such as:

  • who is the owner and manager of the property, and who is authorized to receive notices such as service of process (Or. Rev. Stat. Ann. § 90.305)
  • pending legal actions (Or. Rev. Stat. Ann. § 90.310)
  • responsibility for paying utility bills (Or. Rev. Stat. Ann. § 90.315)
  • recycling (Or. Rev. Stat. Ann. § 90.318)
  • smoking policies (Or. Rev. Stat. Ann. § 90.220)
  • carbon monoxide alarms (Or. Rev. Stat. Ann. §§ 90.316, 90.317)
  • smoke alarms and detectors (Or. Rev. Stat. Ann. § 479.270)
  • flood zones (Or. Rev. Stat. Ann. § 90.228)
  • renters’ insurance (Or. Rev. Stat. Ann. § 90.367), and
  • payments for homeowner assessments (Or. Rev. Stat. Ann. § 90.302)

Federal law might require additional landlord disclosures. Nolo’s chart of State Rules on Required Landlord Disclosures contains a complete list of each state’s landlord disclosure statutes

Oregon landlords can require tenants to pay a security deposit. Under Oregon law, a last month’s rent deposit is considered to be a security deposit. Landlords must provide tenants with a receipt when they receive the deposit. Written rental agreements must include the amount of the security deposit. A security deposit can’t be increased within the first year of the tenancy. Landlords have 31 days after the tenant delivers possession to return the deposit and provide an accounting of any amount applied towards rent or damages. See Oregon Revised Statute section 90.300 for all the rules regarding security deposits.

Small Claims Lawsuits in Oregon

Tenants can sue landlords in small claims court for the return of their deposit and other damages, up to a dollar amount of $10,000. (Or. Rev. Stat. Ann. § 46.405.)

Oregon Tenant Fees

Oregon landlords may not charge nonrefundable fees (Or. Rev. Stat. Ann. § 90.302). Oregon landlords may only charge fees for specified events as they arise. For example, landlords may charge fees for acts such as:

  • paying rent late
  • paying utility bills late
  • bouncing checks
  • failure to clean up garbage and trash, including pet waste
  • violating parking and vehicle rules
  • violating smoking rules
  • damaging property, and
  • tampering with smoke detectors.

Complete information about fees Oregon landlords can charge is found in Oregon Revised Statute section 90.302.

Oregon Rent Rules

Oregon has a statewide rent control law that limits the amount of rent increases, bars landlords from raising rent more than once in any 12-month period, and requires landlords to give tenants proper notice before raising rent.

During any 12-month period, landlords cannot raise the rent more than 7% plus the consumer price index above the existing rent—no matter how long the tenancy. Every September 30, the Oregon Office of Economic Analysis will publish the maximum annual rent increase percentage for the following year.

For week-to-week tenancies, landlords can raise the rent after giving seven days’ written notice. For all other tenancies, landlords cannot raise rent within the first year of a tenancy. After the first year of a tenancy, landlords must give 90 days’ written notice before raising the rent.

Landlords who illegally increase rent must pay tenants an amount equal to three months’ rent, plus any damages the tenants suffered from the increase (such as interest on money they borrowed to cover rent). (Or. Rev. Stat. Ann. § 90.323.)

Tenant Rights to Withhold Rent in Oregon

When landlords fail to comply with a term of the lease or rental agreement, or fail to maintain the premises in a habitable condition, tenants may notify their landlord of the breach and give a 30-day notice to terminate if the landlord doesn’t fix the condition within a certain amount of time. (Or. Rev. Stat. Ann. § 90.360.) Tenants also may withhold rent for some minor defects that can be reasonably repaired for not more than $300—but must follow the statute’s rules regarding notice (Or. Rev. Stat. Ann. § 90.368).

Oregon Termination and Eviction Rules

The rules on how and when landlords can terminate depend on the type of tenancy. Oregon’s laws address week-to-week, month-to-month, and fixed-term tenancies (as well as tenancies located within a landlord’s primary residence). To learn the rules that apply to your tenancy, review the full text of Oregon Revised Statute section 90.427.

Month-to-Month Tenancies

Landlords may terminate a tenancy without cause for month-to-month tenants, but only during the first year of occupancy. After that, landlords must have a reason, or “just cause,” as enumerated in the law (such as demolishing the building, moving immediate family members into the unit, or the tenant’s violation of a lease term).

Tenants With Leases

Tenants with a one-year (or shorter) lease may not have their tenancies terminated during the first year of occupancy unless the tenant has failed to pay the rent or violated another material term of the tenancy (such as having a pet in violation of a no-pet rule). Landlords may decide to not renew or extend a one-year tenant’s (or shorter) lease by giving a 30-day “termination” notice prior to the lease’s expiration date. If the landlord does not terminate and the tenant stays, the tenant has become a month-to-month tenant, but one who has the protections of “just cause” eviction rules on account of the tenant’s occupancy for more than one year (see above).

Landlord Access to Rental Property, Tenant Protection Against Retaliation, and Other State Laws in Oregon

Several other landlord-tenant laws in Oregon affect both property owners and renters, including:

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Contact Rent Portland Homes – Professionals

At Rent Portland Homes – Professionals, our team specializes in Oregon property management. This means you can count on us to be on top of the latest landlord-tenant laws so you don’t have to.

If you’re ready to invest in a rental property in Beaverton, Portland or the surrounding area, but you don’t want to manage that property yourself, contact us today by calling (503) 447-7735 or click here to connect with us online.