ORHA News

By: Tia Politi, ORHA President
April 2024

Badon recap
We had a fun and productive meeting in Bandon last month, with amazing weather and a great turnout. Eleven of us gathered at Lord Bennett’s restaurant on Friday evening for a fantastic dinner and Saturday after the meeting another group headed to the Irish Festival at the Bandon Fisheries Warehouse for Irish food and music. There was wine, beer, cheese and chocolate tastings and I had my first Irish Banger with Mash and despite my Irish heritage it’s not my new favorite food. 

Treasurer Dan Griffin took us through the preliminary budget for the 2024-25 fiscal year and the board provided feedback for the Finance Committee to adjust prior to the vote in May.

The Forms Committee updated the board on the progress of the new ORHA Law Book. Sections are being formatted by Independent Contractor Ben Seamans and I have started working on commentary. It’s been a long time coming, but we hope to have the new book ready later this year, then we can pivot to a new Forms Manual. On that subject, remember that if you have ideas for changes to our existing forms or suggestions for new forms, you can either submit a support ticket on the ORHA Forms Store (https://forms.office.com/r/LEfvp8izL1), or email me at forms@oregonrentalhousing.com.

The Education Committee led by Chair Violet Wilson, and Co-Chair Rain Maryott, are looking for ways to provide more education at the state level and include proceeds in the profit-sharing like we do with the Forms Store, while still allowing for county associations to offer their own classes. This approach would really level the playing field for the smaller chapters but may impact a few of the larger chapters, so discussions are ongoing.

The Technology Committee led by Chair Cloud Miller, is continuing to work on virtual versions of our Forms Manual and Law Book, the proceeds of which would also be included in profit-sharing to the local associations and allow us to make changes in real time as forms or laws change. At some point, we need to look at how we offer forms as well. The Forms Store continues to grow and yet many of our members want printed forms. How do we move toward an online-only model while continuing to serve our less techy members? How do we keep the chapters from having to dispose of inventory when a form changes thereby impacting their bottom line? The Forms and Technology Committees are discussing solutions, and we hope to have some options to vote on later this year.

Survey Committee Update
Many thanks to Mid-Columbia Rental Owners Association Secretary/Treasurer Tanya Dean for stepping up to take over the ORHA Survey Committee. With former Committee Chair Alex Wilkins providing guidance, we’re excited to see a return to surveys of our members. They provide a window into what’s really happening across the state.

Property Management Palooza is coming!
Looking forward to heading east in May for our annual Property Management Palooza and ORHA Board Meeting for our “Far-Flung” meeting. Every year we travel to an area where we don’t usually go to host a seminar and draw attention to an area of the state that we don’t often visit.

This year, we will be in Hermiston and the all-day seminar will take place at the Oxford Suites Hotel on Friday, May 17th – Online registration is required, and the registration will soon be available on the ORHA website. Normally, during Palooza time, we hold committee meetings on the Thursday before the meeting, but due to the distance, we’ll be scheduling those for the week before, on Friday, May 10th. The ORHA Office emailed the May Board Meeting Notice to all ORHA Delegates on 04/01/2024 – Please check your email for further details, RSVPs are required before 04/16/2024.

If you don’t care for a long drive, virtual attendance options will be available, but we encourage you to come in person if you can. Bring the family and enjoy a tax-deductible trip with top-notch education. As usual the presenters will be donating their teaching time and proceeds from the seminar will be distributed to each of the participating associations.

Thank you for your support.

By: Tia Politi
April 2023

Increasing state and local regulations are causing many rental owners who may have toyed with the idea of an exit strategy to get more serious about selling their rentals. Some are taking the tax hit, but others are using the 1031 exchange process and buying rental properties in less restrictive areas of Oregon or in other states. If you’re a landlord who’s thinking about selling or a realtor marketing a tenant-occupied property, here’s some food for thought.

Tenancy termination
The passage of Senate Bill 608 in 2019 changed how rental owners could terminate tenancy. The law enshrined in ORS 90.427 does continue to allow termination of tenancy for no-cause in the first year, but after the first year, tenancy termination is limited to for-cause terminations or for one of four Qualifying Landlord Reasons. So, if the tenant is violating the rental agreement or landlord-tenant law – not paying rent, not keeping the unit in a clean condition, disturbing the peaceful enjoyment of neighbors, etc. – you may want to contact an attorney or eviction specialist to check on your options there.

Otherwise, your only other termination option (with one exception) is to terminate for one of four allowable Qualifying Landlord Reasons (QLR), each of which require a minimum 90-day written notice.

1. The property is being demolished or converted to a different use other than residential use within a reasonable time.
2. The landlord intends to undertake repairs or renovations to the property within a reasonable time and the property is unsafe or unfit for occupancy or will be unsafe or unfit for occupancy during repairs or renovations.
3. The landlord intends for the landlord or a member of the landlord’s immediate family to occupy the dwelling unit as a primary residence and the landlord does not own a comparable unit in the same building available that is available for occupancy at the time the notice is delivered.
4. The landlord is selling the dwelling unit separately from any other unit and has accepted an offer within the past 120 days from a buyer who intends in good faith to occupy the dwelling unit as their primary residence.

For reason number four, you cannot serve notice just because you are marketing the unit for sale. You must have an accepted offer from a buyer who intends to occupy the home as their primary residence. Also, the notice must include “written evidence of the accepted offer” to purchase the unit and be served within 120 days after accepting the offer. The sales agreement may state that the buyer intends in good faith to occupy the dwelling unit as a primary residence, but if not, a signed affidavit from the buyer can be included with a copy of the accepted offer.

How are you to know if a buyer will want to keep the property as an investment and be willing to take on the existing tenancy, or if they want to purchase the home to occupy as their primary residence? You won’t until you get an offer, but rentals generally make ideal starter homes for first-time homebuyers.

If a buyer is purchasing a property for a family member to live in, and the family member is not on title, they must wait until they own the property and may then serve a 90-day notice for that reason.

ORS 90.427(1)(b) “Immediate family” means:
(A) An adult person related by blood, adoption, marriage or domestic partnership, as defined in ORS 106.310, or as defined or described in similar law in another jurisdiction;
(B) An unmarried parent of a joint child;
(C) A child, grandchild, foster child, ward or guardian; or
(D) A child, grandchild, foster child, ward or guardian of any person listed in subparagraph (A) or (B) of this paragraph.

Once an offer is proffered and accepted, the seller can provide the tenant(s) with Notice of Termination-Qualifying Landlord Reason - ORHA form #T5, check the correct box, provide the evidence of the accepted offer to purchase, and pay the tenant the relocation expense of one-months’ periodic rent unless exempt. Owners with an ownership interest in four or fewer residential dwelling units subject to ORS Chapter 90 are exempt from the payment of relocation expenses. If required, the relocation payment must be included with the notice. It cannot be issued as a credit, and it does not matter if the tenant owes you money for something else. You must include payment with the notice.

Eugene and Portland additional requirements
Termination notices for properties within the city limits of Eugene or Portland have additional requirements when serving notice to terminate for no cause, nonrenewal of lease, or for a Qualifying Landlord Reason. Also, relocation expenses in these cities are much higher with few allowable exemptions that must be claimed through a reporting process to each city’s housing bureau or agency with specific timelines. Both cities allow the amount of the city fee to be reduced by the amount of the state fee, and both allow for the city fee to be paid within 45 days of delivery of the notice, not immediately like the state fee.

Eugene rules can be found here:  https://www.eugene-or.gov/845/Rental-Housing-Code
Portland rules can be found here:  https://www.portland.gov/phb/rental-services

Any notice of termination must be prepared and served in accordance with ORS 90.150, 90.155 & 90.160, and will remain in effect for the purchaser if the sales closes during the term of the notice. The buyer can end up with liability if the seller fails to prepare and serve the notice in accordance with the law. The tenant has the right of due process and can challenge the notice in court. If the buyer proceeds to eviction court, and they have inherited a defective or imperfectly served notice of termination, they could lose the case, maybe have a judgment rendered against them, possibly must pay the tenant’s attorney, and start over again. Who will be sued if that happens? Everyone. Get professional assistance.

Terminate to renovate?
In a case where a seller believes that it is likely the property would be sold to a buyer who wants to live in the property, and will need to get a mortgage to purchase, the best strategy may be to terminate tenancy for another QLR, such as the owner intends to undertake repairs or renovations to the unit within a reasonable time and the unit will be unsafe or unfit for occupancy during repairs or renovations.

Realtors encourage sellers to spruce up the unit prior to marketing, but how significant do the repairs or renovations need to be to claim the right to terminate for renovation? One attorney I took a class from on this subject said any renovation had better impact habitability, so check out ORS 90.320, the Habitability section of landlord-tenant law. You may be challenged and must justify your decision to a judge, so be prepared to think about this ahead of time.

A full interior repaint might qualify on an older home with lead-based paint that is substantially peeling, but might not, and maybe replacement of flooring, ceiling tiles or texture containing asbestos. Kitchen or bath remodels would likely render the unit uninhabitable, especially if there’s only one bathroom, but things like new windows may not. Unless there is significant rot requiring structural repair, or you are increasing or decreasing the size, new windows can be installed from the outside with little disruption. Re-wiring, re-piping, repairing significant rot in subfloors or walls, replacing kitchen cabinets or tub surrounds, tearing open walls to create an open floor plan, abating hazardous materials, these are examples of renovation work that would more than likely pass the ‘unsafe or unfit for occupancy’ threshold.

Supporting facts
To terminate tenancy for a QLR requires that the landlord provide “supporting facts” regarding the reason for termination. For a property sale to an owner-occ buyer, you must include, “written evidence of the accepted offer.” For the renovation option you must describe the work you intend to do that will render the unit “unsafe or unfit to occupy.” For example, in 2021, hubby and I gave notice to tenants in a property we wanted to sell that needed substantial renovation. We had dug a new well the year before, but still needed to move our pressure tank to the new well house, dig and place water lines, cap off the old water lines, and hook up to the new well. We also intended to tear out part of a wall, update the bathroom, upgrade some electrical and other plumbing, and of course, do a lot of cosmetic work. We put together a list of those items to include with our notice. In another unit, we had to tear out and rebuild the only bathroom, so even though we were also doing substantial cosmetic work, that’s what we listed as our supporting facts, because that’s what was going to render the unit uninhabitable.

Some landlords (and one notice I saw from an attorney) quote the statute as their supporting facts, i.e., “We intend to undertake repairs or renovations to the property that will render the unit unsafe or unfit to occupy.” I always thought that would not be good enough and one of my colleagues in Salem told me about a case the landlord lost where that’s all they had written. The judge said it wasn’t enough. They needed to describe the renovations.

If you’re hiring a contractor to perform the repairs, they can describe the renovations and you can attach a copy of their bid. If you’re doing the work yourself, describe what you’re doing that will render the unit unsafe or unfit. Even then, a tenant can sue later if they feel your level of renovation wasn’t enough to render the unit unsafe or unfit. One member had a foundation issue in an older home that required a large section of floor to be cut out, so served proper notice. But when the tenant moved and her contractor cut open the living room floor, they found that the foundation repair was less substantial than they had thought. They were able to fix it quickly and the rental owner got the unit back in shape and back on the rental market. The tenant saw that the property was being advertised for rent soon after his move out and is suing. I think she’ll be okay because the only way to determine the extent of the repair was to cut out the floor, she has her contractor to testify for her, and she gave the notice in good faith, but we’ll see what the judge says when the case is heard.

Note:  Your insurance policy may not provide full coverage for your unit if it is vacant for more than 30 days, so contact your insurance company to learn about insurance options for vacant properties.

The duplex rule
Termination rules do provide a narrow exception for owners with no more than two units on the same tax lot where one unit is their primary residence. Landlords are allowed to terminate tenancy for no-cause with a 60-day written notice. Also, in these types of situations, a 30-day notice of termination is allowed if the property is to be sold and the buyer intends in good faith to occupy the tenant’s unit as their primary residence. If the buyer does not intend to occupy the tenant’s unit as their primary residence, then the tenant comes with the sale. For either reason use Notice of Termination – Two-Unit/Owner-Occupied Property – ORHA form #T7. And just like with a QLR, if you’re terminating in 30 days based on a buyer occupying the tenant’s unit as their primary residence, you need to include a copy of the offer within 120 days of accepting it.

If the duplex is being held as an investment property and the seller does not live in one unit, but the buyer wants to occupy one side as their primary residence after closing, the same rules would apply as if for a single-family home. If the tenancy has been in place for more than one year on the side the buyer wants to live in, the seller would either have to issue the 90-day notice of termination for one of the four QLRs allowed by law, or sell the property as-is and the buyer can issue the notice for the QLR of wanting to live in the unit as their primary residence. Once the notice expires and the tenant vacates, the buyer can then move in.

A problem with the statute wording
You may notice that the statute – ORS 90.427(5)(c) – that allows a landlord to issue the 90-day notice if they are selling the property to an owner-occ buyer says, “…the landlord has accepted an offer to purchase the dwelling unit separately from any other dwelling unit from a person who intends in good faith to occupy the dwelling unit as the person’s primary residence. So, does that limit a seller’s right to terminate tenancy for buyers to occupy one or both sides of a duplex? Or a main house and an ADU?

I don’t think so, because later in the same statute – ORS 90.427(8)(a)(C)(i) – when referring to the two-unit owner-occupied exemption it uses the same language “the dwelling unit is purchased separately from any other dwelling unit,” and because that part of the statute specifically applies to a two-unit property, attached or unattached, to my mind (not legal advice, only lay-person reasoning) it indicates you may serve a notice to terminate for buyers to live in one or both sides. I’m not aware of any case law on this subject, so if you get pushback you may want to get some qualified legal advice before proceeding.

Getting the renter's cooperation
I’ve always recommended to owners wanting to sell that they first offer the property to the renter. Maybe you can carry the note or maybe not, and while it is rare that an offer like this results in a successful purchase, it’s not unheard of either. If that’s not an option, sellers and their realtors should always consider ways to garner the renter’s cooperation in the process. They’re not going to be happy about the situation. Many rental owners with long-term renters have kept their rents low, and the renter is likely to experience some amount of sticker shock when they head out to shop for a new home. There is also a lack of available units, making their situation even more bleak.

And while COVID is now endemic, it’s still important to take into consideration renters’ worries about exposure. I think it’s a good idea for rental owners to reach out to the renters and let them know how the process will go and what steps you will take to reduce the number of showings. It might look something like this:

• The realtor will make an appointment to shoot a detailed walk-through video and take lots of pictures, taking all reasonable precautions by always wearing a mask and gloves, if the renter wants that. The realtor may also want to consider having a forehead thermometer with them to provide proof to the renters that they and anyone they show the property to has a normal temperature. And if you expect the unit won’t look its best, some realtors or their clients are paying to have someone come over and clean the home or spruce up the landscaping prior to shooting a video or taking pictures, even if that is the renter’s responsibility.
• Require any interested parties to watch the video, look at the photos and do a drive-by of the unit. Then, make sure they are financially pre-qualified in some fashion to schedule a time to view the property. That will eliminate the looky-loos and reduce in-person showings to serious buyers only.
• Provide ‘consideration’ for each showing (and maybe even for allowing the realtor in to do the video and take pictures). Consideration means money. Perhaps a credit or payment of $25 per showing or per hour for an open house. I’m not saying $25 is the magic number, just what seems about right to me. Money makes everything better; not perfect, but better.

I also recommend working with the renters picking one or two weekdays and one weekend day per week that works best for them and doing your best to limit showings to those two or three days, if possible. Try to understand how disruptive it would be to have strangers tromping through your home. Their home is their sanctuary, their safe place as yours is to you. You’ll have a better chance of garnering their cooperation by being sensitive to that – at least they have some assurance that for four or five days every week they will be left alone to live their lives.

Let the renters know what the timeline is for termination so they can start planning. Let them know about the 90-day notice period so they have assurance there will be time to look for and secure new housing.

Entry without notice to show the property
ORS 90.322 states in part that, “A landlord and tenant may agree that the landlord or the landlord’s agent may enter the dwelling unit and the premises without notice at reasonable times for the purpose of showing the premises to a prospective buyer, provided that the agreement:

(A) Is executed at a time when the landlord is actively engaged in attempts to sell the premises;
(B) Is reflected in a writing separate from the rental agreement and signed by both parties; and
(C) Is supported by separate consideration recited in the agreement.

So, if the renters are willing, you can enter into an agreement for property showing using, Entrance Agreement for Property Showing - ORHA form #O13.  In my experience few, if any, renters are okay with allowing realtors or owners to show a property without notice, but it’s worth asking.

Denial of entry
What if, despite all your efforts to gain cooperation, the renter just won’t cooperate? While ORS 90.322 specifies that a landlord has the right of entry after providing a minimum of 24 hours’ notice, it also allows renters to issue a reasonable denial of entry, “Unreasonable time” refers to a time of day, day of the week or particular time that conflicts with the tenant’s reasonable and specific plans to use the premises.’ So, if you want to enter at 2:00 p.m. on Saturday, but the tenant has scheduled their child’s birthday party at that time, those are reasonable and specific plans to use the premises. The statute goes on to say that “A landlord may not abuse the right of access or use it to harass the tenant. A tenant may not unreasonably withhold consent from the landlord to enter.” Tenants can assert denial of entry by actual notice (calling you, emailing or texting, etc.) or by posting a note on the entry and you are not allowed to enter.

If the renters won’t cooperate regarding setting specific days for showings, you’ll have to serve a 24-Hour Notice to Enter – ORHA form #O4 each time you want to enter. If you have the right listed in your rental agreement, you may email or text your notice to enter. To bolster your case that a specific denial of entry is unreasonable, you may want to include some language like this:

“We will take any COVID-safe precautions you request. We will only spend as little time in the unit as possible and expect the walk-through will take a maximum of 15-20 minutes. If our requested time and date for entry conflicts with your specific plans to use the property at that time, we will accommodate a different time or day within a 48-hour period following our intended date and time of entry. Please contact us right away to reschedule.”

The way to gain entry (or possession) after a tenant has unreasonably denied your request is to serve a Notice of Termination with Cause – ORHA form #VT5, as allowed by ORS 90.392. I call this notice a 30/14, some folks call it a 14/30. The notice provides the renter with a minimum 14-day cure period to allow entry, or the tenancy would terminate within a minimum of 30 days. While that is a long time to wait to enter, once that notice is in place if they don’t cure you can evict. If they do initially cure the notice and let you in, but unreasonably deny entry again within six months of service of the original 30/14, the same statute allows you to serve a Repeat Violation Termination Notice – ORHA form #T1 and terminate the tenancy with 10 days’ written notice. The renter has no right to cure this notice.

If you find yourself in this situation, remember, the denial must be unreasonable and you may have to prove that both the original denial of entry and the repeat denial were unreasonable, and that your notice(s) are perfect in every way. That’s why it’s helpful to start with a plan as I’ve outlined above so you have something to show a judge in the event you end up in eviction court. Communications with the renter showing the efforts you made to address any concerns and your attempts to be flexible and adapt to their schedule should be helpful in proving their specific denial was unreasonable.

Delayed or accelerated move out
Just because a notice of termination is served, doesn’t mean that the timing will work out. At least half of the time, there is some delay in the move out – sometimes because the timing for a unit the renters have been approved for isn’t ready, sometimes because they have been unable to find anything. I always encourage owners to build in some sort of flexibility to the move out date. If in the end the renter needs more time, if you can, be ready to offer some sort of extension. But only agree if the renter puts their notice to vacate in writing to you and pays the prorated rent for the extra time. Use Notice of Termination from Tenant – ORHA form #T10.

If you can’t offer more time, and the renter won’t move out, the only other option is to initiate an eviction action in court, which can take three to five weeks or more. If the termination notice is contested, the process can be delayed further, so everyone should factor that into the timing of the notice to vacate. And remember that even if you serve a 90-day notice, the tenants may instead find something quickly and provide just 30 days’ notice to vacate which could throw off the timing as well, although for buyers and sellers that may be less of a concern.

What if the sale falls through?
You must rescind the notice and start all over again with a new notice once you receive and accept another offer. If you were required to pay relocation expenses to the tenant, however, you don’t need to pay them again.

When to close
If a buyer intends to live in the property and makes an offer, most buyers will need a mortgage to purchase, have an interest rate lock that expires in 45 days, and be required to occupy the home within 30-45 days after closing. With the current volatility in interest rates, buyers who need a mortgage and the sellers hoping to sell, are having a tougher time. If the property sale closes during the notice period, the buyers will be ones tasked with handling the move out and deposit accounting. This can be a big headache if they are not landlords and/or if the seller’s property condition reports are shoddy or nonexistent.

Even though it can impact interest rates, buyers might be well advised to wait for the tenants to move out before closing on the sale to avoid the hassles of security deposit reconciliation and maybe even eviction. And, if that’s not possible buyers may just have to suck it up and refund the entire deposit if there’s no evidence from the seller regarding condition. Just one more thing to think about and plan for.

Cash for keys
Cash for keys is a tried-and-true method for regaining possession of a property and nothing prohibits both parties from making a mutual termination agreement. Just make sure that the terms are clearly spelled out in writing, and that the agreement states what will happen if the tenant complies and what will happen if they don’t comply. We have a great new form Mutual Termination Agreement – Release of All Claim – ORHA form #T9. Use it to record the terms and if the tenant fails to move out, it can form the basis for an eviction. Whatever amount of money you agree to pay, you may have to provide at least part of the funds up front, so they have money to put down somewhere else. Try to negotiate paying only part of it and specify that they only get the remainder in exchange for possession of the property at the agreed upon time. That way if they don’t move out when they agree, you don’t have to pay them the rest.

Marketing an investment property
Termination laws don’t impact property sales where the seller and buyer are both investors and the buyer won’t be living at the property, but there are still issues that can make the property easier or more challenging to market – mostly regarding the price of rents, the quality of the tenancies, and the completeness of the seller’s documentation.

Owners who have under-market rents will find that their properties cannot prove sufficient cash flow to meet the demands of sophisticated investors, and they won’t be able to command the same price. If you are planning to sell an investment property in the not-too-distant future, and your rents are below market, plan to increase rents within the limits imposed by ORS 90.323 until your rents are market rate so that your property can command the best sales price.

The quality of the tenancies can help or hurt investment property sales as well. Residents who are keeping to their lease and caring for the property are a fantastic marketing asset for sellers; problem residents are not. Maybe you should think about removing your problem residents ahead of offering the property for sale. Also, the completeness of the seller’s tenancy documents can also help or hurt the sale. If there are gaps or flaws in paperwork, fix them now, or be prepared to accept a lower price as a buyer will have to agree to accept the increased liability and correct the deficiencies.

Paperwork pitfalls
What does good paperwork look like? The rental agreement and all addenda are complete, initialed, signed and dated by all adult occupants, the seller has adequate documentation on the condition of the units on move in, copies of work orders, accurate and complete tenant ledgers, good notes, and copies of notices regarding lease violations during the tenancy, and detailed inspection reports.

Without good paperwork, a buyer may be purchasing liability. For example, the seller is marketing their property built prior to 1978, but has no signed lead-based paint disclosure. The penalty for this violation if reported to the EPA, is $6,000. The buyer could require as part of the sale that the seller fixes the deficiency in the paperwork so that they are not taking on that kind of liability. Or the buyer could agree to accept responsibility for fixing that problem after the sale but use that deficiency to negotiate a lower price.

The takeaway
A property sale with tenants in place requires better advance planning by sellers, more thorough investigation by buyers, and for realtors, it requires a higher level of due diligence than ever before. For realtors, fulfilling your fiduciary duty to your clients means educating yourselves on the mandates of ORS 90.427 and all its intricacies to provide clients with the best information possible as to the benefits, drawbacks, and possible outcomes of selling tenant-occupied rental property.

This column offers general suggestions only and is no substitute for professional legal counsel. Please consult an attorney for advice related to your specific situation.

Rev. 3/2024

By: Tia Politi, ORHA President

March 2024

Meeting in Bandon
Looking forward to seeing our association delegates at this month’s Board Meeting in beautiful Bandon. See the March 2024 Board Meeting Notice from the ORHA Office for dates, times and location. You should have already received your invitation and secured your place. We will be meeting at Lord Bennett's Friday night at 6 p.m. for a no-host delegates dinner just to eat some good food and hang out - hope you will join us. If you’ll be staying Saturday night, we’ll figure out something to do. It’s St. Patrick’s Day weekend and there’s an Irish festival, so we may head over there for food and fun.

The committee meetings will be held at the Wizard Hat Beach House – See Board Packet for Address – as will the Sunday morning training. This meeting’s training will be 9-10 a.m. and I’ll be talking about how to handle a landlord helpline for your association. It’s a challenge but dramatically increases a chapter’s value to its members. I’ll be discussing setting up a dedicated Google Voice phone number for callers, tracking calls and topics to guide the board in educational offerings, directing callers to our forms and manuals, dealing with people who take too much time, and how to answer landlord questions without giving legal advice.

Property Management Palooza!
Mark your calendars for this year’s Property Management Seminar in beautiful Hermiston, Oregon, Friday May 17, 2024. Classes will be held at the Oxford Suites at 1050 N 1st St, Hermiston. We should have four teachers this time, Christian Bryant, president of the Portland Area ROA, Jason Miller, ORHA Legislative Director, Violet Wilson, ORHA Executive Committee Advisor and chair of the ORHA Education Committee, and myself. Meetings have begun and we’ll send you more info on the class times and topics next month.

The Palooza is our way of highlighting a smaller chapter and helping them boost their finances. In this case we’re working with all our eastern Oregon folks and while the distances are vast, it’s a beautiful drive. So please mark your calendars for an all-day seminar. If you can’t make it in person, we will be offering virtual attendance options as well, but we encourage you to come in person if you can. Remember, when you travel for business it’s a tax deduction!

There’s a lot to do in Hermiston and the surrounding areas and Eastern Oregon is spectacular in the Spring, so bring the family for a mini vacation. In Hermiston, there’s the Hermiston Family Aquatic Center, Butte Park with a great view if you hike to the top of the Butte, the Hermiston Raceway, Desert Lane Bowling Alley & Arcade, and Winery Tours.

The town of Hermiston has long been a stopover for travelers. The Lewis and Clark Corps of Discovery passed the distinctive outcropping of Hat Rock, now a state park, and wrote about it in their journals. The town site in the 1860s was known as an overnight spot for horseback travelers who frequented an Old West hotel and bar here. The Maxwell Siding Railroad Display recalls a former time when rail was king. Visitors can view the early 20th-century rail cars and collection of railroad memorabilia. (Tours are available by appointment.)

Umatilla is only a 12-minute drive from Hermiston and offers their own array of things to do. Head down to the river at the Umatilla Marina R.V. Park, a great spot for boaters, and the McNary National Wildlife Refuge, with walking paths around the ponds and sloughs that provide key habitat for migrating and resident water birds as well as other wildlife. Visit the nearby Pacific Salmon Visitor Information Center at McNary Lock and Dam to learn about the life cycle of salmon and the history of hydropower in the Columbia. Don’t miss your photo op with the giant cowboy sign outside the Columbia Harvest Foods store. Then head west toward the Umatilla National Wildlife Refuge, where you can look for burrowing owls, overwintering eagles, mule deer and badgers.

We hope to see you there!

By: Tia Politi, ORHA President
February 2024

Hope you survived the January ice storm in good health. Looking forward to seeing our ORHA delegates next month in beautiful Bandon! You’ll receive information soon on the location and registration. See Office Manager Ben Seamans’ Office Report later in the newsletter.

We’re gearing up for the short legislative session, and our legislative team – Lobbyist Shawn Miller, Legislative Director Jason Miller, and Deputy Legislative Director Ben Seamans – are ready for action. Nothing like the excruciating long session, but the attacks on the largest contingent of small business owners in the state continue unabated. The one bright spot is an additional $65 million in rent assistance that the Governor is carving out to help keep people housed.

Or is it? As an eviction specialist I’ve seen many sad cases over the years where a few months’ rent would have saved a tenancy or allowed a resident to move on without loads of debt hanging over their head, but what I’ve seen happening with the distribution of rent assistance is anything but orderly or fair. For more than two years, I have been helping an owner serve notice, take his renters to court, and then have them get bailed out. These are two able-bodied folks in their 30’s who could work, but don’t seem to want to or they’re choosing to spend their money on things other than rent.

They’ve gotten at least four rounds of rent assistance while others are told there are no more funds left. What’s wrong with this picture? Also, some agencies cover other costs, and some don’t. I’ve had some owners reimbursed for everything, including late fees, NSF fees, utilities and court costs, and others only get rent. Some get rent through that month; others get rent paid ahead with seemingly no rhyme or reason as to the disparity.  And I imagine you saw the article about the millions of dollars that have been fraudulently distributed – what a mess. Challenging to remain optimistic…anyway, glad rental owners are getting some money.

Landlords are commonly seen as rich, opportunistic, and greedy, when the truth for most of us is that we scraped and saved and worked full time jobs while trying to build some sort of reasonable retirement for ourselves and something to pass to our children. Most of us did not inherit our rentals. Most of us have 1-4 units. Most of us still work full time. Most of us still have mortgages. Most of us care deeply about our renters’ experience. Not sure how we can change the stereotype, but it takes all of us running our rental businesses ethically and policing our own. I’m also president of the Rental Owners Association of Lane County. Just like ORHA, we have a code of ethics and at Lane we have removed members from our membership rolls for unethical behavior. I hope all our chapters do the same. It only takes a few bad apples to make us all look bad.

By: Tia Politi
February 2024

What is a fee? A fee is a non-refundable charge to a tenant, most often for a violation of the rental agreement, but also for certain landlord expenses. A landlord is not obligated to account for or return to the tenant any lawfully charged fee. (Screening fees are charged pre-tenancy, and have their own requirements and restrictions. They are not addressed in this discussion.)

A fee must be described in a written rental agreement. If it’s not in the written agreement or you have not implemented a change in terms in the case of municipal fees, you can’t charge any fees at all. There are two types:  contractual fees and noncompliance fees.

Contractual Fees include:

1. Late payment of rent fee.
2. Smoke/CO alarm tampering fee.
3. Dishonored check fee.
4. Lease-break fee.
5. HOA/COA move-in or move-out fees.
6. Municipal services pass-through fees.

Noncompliance Fees include:

1. Late payment of a utility or service charge.
2. Failure to clean up animal waste (pet or assistance animal) from a part of the premises other than the dwelling unit.
3. Failure to clean up garbage, rubbish, or other waste from a part of the premises other than the dwelling unit.
4. Parking violations or improper use of vehicles within the premises.
5. Smoking in a clearly designated nonsmoking unit or area of the premises.
6. Keeping on the premises an unauthorized pet capable of causing damage to persons or property, as described in ORS 90.405. 

Contractual fees require no further notice prior to assessment, than being described in a written rental agreement. Once the tenant commits the violation, you assess the fee.

Non-compliance fees require that upon first occurrence of a violation you must provide a written Warning Notice – Notice of Noncompliance – ORHA form #V1. If the tenant commits the same or substantially the same offense within one year, you may assess the fee and may assess repeated fees repeatedly during that year if the behavior continues. 

In the Oregon Rental Housing Association rental agreement, all fees, whether contractual or noncompliance, are due immediately upon default.

CONTRACTUAL FEES

Late Rent
You may charge a fee for late payment of rent when the tenant pays rent beyond the statutorily allowable grace period. If allowed by contract you may assess a late fee for any rent payment received after 11:59 p.m. on the 4th day of the rental period or after 11:59 p.m. on the 7th day of the rental period, depending on what you have stated in the agreement. 

A tenant may be allowed an even longer grace period if they are disabled. When a late fee may be assessed to a disabled resident is dependent upon when they receive their disability payment from the government. Under Fair Housing regulations a landlord must make an exception to their normal policies to accommodate a disability-related need and payments are no exception. So, what’s fair in this situation? I think once you know that the tenant doesn’t get their assistance payment until say, the 10th of the month, it might be reasonable to extend the grace period through midnight of the 14th. 

If you are required to extend your grace period, do it, but don’t change your due date for rent. Just keep it the first but extend the grace period to accommodate their payment schedule. I once had a disabled renter who had no bank account, and no car. She got her disability payments on the 3rd of each month, so I extended her grace period through midnight of the 7th to give her enough time to cash her check and pay her rent.

There are three types of late rent fees a landlord may charge:

1. A one-time charge in an amount not to exceed the amount customary to the local area. A landlord whose rental is in Bend or Portland may be allowed a higher fee than one whose rental is in Reedsport or La Grande. A reasonably safe amount might be up to $100, but just like everything rates increase over time, and I’m starting to see flat fees of $200 and in one recent case, even $250. Not sure what would happen if the amount of the fee were litigated, so keep that in mind when you’re establishing the amount. I know of one management company who has staggered rates based on the rent amount, so a higher flat fee if the unit is a higher-end property.
2. The second choice is a daily fee that may be charged as early of the 5th day of the rental period with daily fees being assessed each day after that until rent is paid in full for that rental period only. The daily amount may not exceed 6% of the reasonable and customary one-time amount, so if we agree that a late fee of $100 is reasonable in your market that would mean a daily rate of $6; if we agree that a late fee of $200 is reasonable in your market, then a daily rate of $12. 
3. The third choice is the most painful of the three for the tenant, and that’s a late fee of 5% of the rent amount for every five-day period or portion thereof until rent is paid in full for that rental period only. These can really add up. For example, if the rent is $1500 per month, then 5% is $75. Multiply that by each 5-day period and if rent isn’t paid until the end of the month the tenant can be responsible for a whopping $450. 

Changing the type or amount of the late fee
A landlord may change the type or amount of late fee in a month-to-month agreement with a 30-day written notice. If they are in a lease, you’ll have to wait to change the fee. All my renters have a late fee amount of $50, low by today’s standards, but I’m in no hurry to change it because they all pay on time. But if they weren’t paying on time, I would serve our new form Late Fee/Renters Insurance Notice of Change in Terms – ORHA form #O15 and change it to option three. The idea is to incentive on-time payment, so if you’re experiencing repeated issues with late payment of rent you might consider this type of change.

Insufficient Funds
Landlords may assess a fee of $35, plus bank charges for any dishonored check submitted as payment by a tenant. It’s very rare, but I did once have a tenant prove that the returned payment was a bank error, and the bank paid the charge on her behalf.

Lease-Break
You may charge a fee to a tenant who breaks a fixed-term lease without cause if provided for in the written rental agreement. The fee may not exceed 1-1/2 times the monthly rent. If you charge the fee:

• You may not recover unpaid rent for any period of the fixed term tenancy beyond the date that you knew or reasonably should have known of the abandonment or relinquishment.
• You may not recover damages related to the cost of renting the dwelling unit to a new tenant. 
• You may not charge a lease-break fee in cases of termination of tenancy related to domestic violence, sexual assault or stalking as described in ORS 90.453(2), or for a tenant being called to active-duty military service as described in ORS 90.472 or 90.475, or if the lease is broken for cause.

Smoke/CO Alarm Tampering
You may assess a fee for tampering with a properly functioning smoke or CO alarm. The fee is not to exceed $250 per occurrence, and you may not assess the fee if the Fire Marshall has already done so. I once managed a fraternity and the fire Marshall had inspected, discovered the violation, and charged the fee and I couldn’t pile on darn it.

HOA/COA Move-in/Move-out
You may pass through move-in or move-out fees assessed by your condominium or homeowner’s association. To pass on the fee:

• You must disclose the fee in writing prior to accepting any money, even a screening fee. Our application has a box you can check and a blank to fill in to notify the applicant what amount they will be responsible for paying.
• You must bill the tenant within 30 days of receiving the association’s bill, provide a copy of the invoice with the bill, and allow the resident up to 30 days from the date of billing to pay.

Municipal and Utilities Pass-Through
You may pass on municipal fees and charges to tenants.

• The pass-through charges must be stated in the written rental agreement.
• The charge must be imposed on you by a utility or service provider, on behalf of the provider or a government agency for municipal services, or for general use of a public resource related to the dwelling unit, including assessments for street maintenance, transit, public safety, or parks and open space. To assess a municipal fee:
• • You must bill the tenant in writing within 30 days of receipt of the provider’s bill and include a copy of the bill.
  • You must provide the tenant 30 days or more to pay. 
  • If not stated in the written rental agreement, the fee may be added to an existing periodic agreement with 60 days’ written notice. 

NONCOMPLIANCE FEES 

• Prior to charging a noncompliance fee, you must issue a written warning notice within 30 days of discovery of an initial violation that states a specific noncompliance, and the amount of the fee for a second noncompliance, or for any subsequent noncompliance, that occurs within one year after the issuance of the written warning notice. Use Notice of Non-Compliance – ORHA form #V1.
• You may not issue a Warning Notice prior to a violation being committed by the tenant.
• For any specific violation, the right to charge a fee stops one year from the date of issuance of the first written Warning Notice. Once the year has passed, you must issue a new warning notice prior to charging fees again for that specific violation. 
• Noncompliance fees must be assessed within 30 days of discovery of the act constituting the violation. 
• You may instead serve a for-cause notice and terminate a tenancy for the violation instead of assessing a fee but may not assess a fee and terminate a tenancy for the same violation; however, you may terminate a tenancy for failure to pay outstanding noncompliance fees billed to the tenant.  

Allowable noncompliance fees include:

• The late payment of a utility or service charge that the tenant owes the landlord as described in ORS 90.315. 
• Failure to clean up animal (pet or assistance animal) waste, garbage, rubbish, and other waste from a part of the premises other than the dwelling unit.
• A parking violation, or the improper use of a vehicle within the premises.

The allowable fees for these violations are limited to $50 for the second offense, and $50 plus 5% of the rent amount for all subsequent similar violations that occur within one year of issuance of the required written warning notice. 

Two other noncompliance fees are higher:

• Smoking in a clearly designated nonsmoking unit or area of the premises. 

You may charge a $250 noncompliance fee as early as 24 hours after the effective date of the written warning notice for violating this prohibition, and repeated fees for every 24-hour period during which the tenant continues to violate this provision.

•  Keeping on the premises an unauthorized pet capable of causing damage to persons or property, as described in ORS 90.405. 

You may charge a $250 noncompliance fee as early as 48 hours after the effective date of the written warning notice if the tenant fails to remove the unauthorized pet, and repeated fees for every 48-hour period during which the animal remains on the premises.  

Interestingly, the statute does not provide timelines for how long tenants have to cure the other listed violations, so do what’s reasonable.

GETTING PAID

• Notify the tenant that they owe a fee 

Send a bill to the tenant each time they incur a fee, stating the violation, the fee they owe, the fee they will owe upon future violations, and how long they have to pay. The length of time a tenant has to pay a fee after notification can be defined in the rental agreement; if not defined, 30 days seems reasonable.

• Collect the fee or terminate 

If the tenant does not voluntarily pay a bill for a lawfully charged fee, you may send a Notice of Termination with Cause - ORHA form #VT5, providing a final opportunity to remit the funds or the tenancy terminates. If the tenant neither pays nor moves, you may evict them on that basis.

PENALTIES AND OTHER CONSIDERATIONS

• Landlord penalty for violation

If a landlord charges a tenant a fee in violation of this section, the tenant may recover twice the actual damages of the tenant or $300, whichever is greater (90.302). This penalty applies to all fees except for municipal fees or utilities pass-through, in which case the landlord penalty is one months’ rent or twice the tenant’s actual damages (90.315).

Concerns about proof, documentation
You must take care to ensure that you have and retain proper documentation and proof of the violation prior to issuing a warning notice or assessing a fee. If a tenant disagrees with your assessment, the conflict could end up in court, where legitimate evidence will be required.

This column offers general suggestions only, and is no substitute for professional legal counsel. Please consult an attorney for advice related to your specific situation.

By: Tia Politi, ORHA President
January 2024
Welcome to our new members of the Executive Committee
I’m pleased to announce that at our November meeting, Dan Griffin of the Central Oregon Rental Owners Association was elected Treasurer to serve out the remaining term after our previous Treasurer resigned. With his gift for numbers Dan is a great choice. Dan is a licensed real estate broker and an investor. He’s working on his business start-up and he and his wife own five rental properties in Central Oregon. They have a 3-year-old daughter and a baby on the way. Originally from the Chicago area, Dan moved to Oregon nearly 11 years ago. He spends his free time building an off-grid cabin in a remote area east of Bend and training jiu jitsu. Thanks, Dan, for agreeing to serve.

With our new Treasurer, a fantastic bookkeeper, Lori Black, along with Finance Committee Chair Dennis Chappa’s experience and tutelage, we’re in a good place with our finances. 

You might recall that last year the board voted to reduce our regions from five to four, and in accordance with our bylaws, each area must be represented unless there’s no one willing to serve from a particular region, so with the prior Treasurer’s resignation, we were left without a representative from the Southern Region to serve on the Executive Committee, so... 

…I’m also pleased to announce that Joanne Williams from the Rental Owners Association of Douglas County has agreed to serve as At-Large Member. She was a computer programmer for 30 years until her purchase of Centerpointe Property Management in 2020. Her company has 11 employees, including her daughter who will be taking over the business someday. Centerpointe manages around 700 regular rental units and three HOA’s with around 300 units. 

Joanne has lived in Roseburg most of her life and caught the rental bug from her grandmother who was a longtime landlord. She bought her first property in 1998 to supplement her retirement, and recently bought a 7^th unit. She says Monopoly is her favorite board game, and she enjoys camping and hiking in her limited spare time. She’s a proud mom of two, and a grandma of two. A fun fact about Joanne is that she appeared on TV in the show Swift Justice, and she won! Thanks, Joanne, for agreeing to serve.

New forms available for 2024 law changes
With the advent of new laws that took effect this year, including a requirement to allow child care in rental properties, and an allowance to serve notice by email and mail among other changes, the Forms Committee is rolling out new forms and forms changes to help you navigate. Read my article on New Forms and Forms Changes – Part II in my Forms Committee Report later in the newsletter.

The article also highlights an important change you’re going to see in all of our forms regarding our service boxes, so check it out!

One of the biggest challenges we face with our online Forms Store is the cost of developing and programming fillable forms. In November, the board accepted the committee’s recommendation to offer some forms on the site that will not be fillable. At a cost of around 10% of what it would normally cost to offer fillable forms, it will enable us to offer many forms we thought would be helpful but were not within our budget to produce. It will also allow us to see if the use of some forms justifies making them fillable in the future. Just like with printed forms, they are copyrighted, so you aren’t allowed to just print one and copy them for the future.

Remember, what we do costs money and when you unlawfully copy our forms, it impacts our ability to improve our offerings. We work hard to help our members run a successful rental business and appreciate your support, financial and otherwise.

Watch out for fraud!
Late last year, a member sent me a very realistic looking letter purporting to approve rent assistance from Catholic Community Services for her renter, but when the member called their office, they had not received an application from the tenant nor approved anything. 

Fraudsters are getting better all the time. If your tenant claims to have applied for assistance or been approved for assistance, even if they have official-looking documents you should contact the agency to check.

No meeting this month
Remember, there is no January meeting, so we’ll see all our delegates in Bandon in March. Looking forward to work and play.

Property Management Palooza!
This year’s Property Management Seminar is being held in beautiful Hermiston, Oregon, Friday May 17, 2024. The Palooza is our way of highlighting a smaller chapter and helping them boost their finances. In this case we’re working with all our eastern Oregon folks and while the distances are vast, it’s a beautiful drive. So please mark your calendars for an all-day seminar. If you can’t make it in person, we will be offering virtual attendance options as well, but we encourage you to come in person if you can. Remember, when you travel for business it’s a tax deduction! 

There’s a lot to do in Hermiston and the surrounding areas and Eastern Oregon is spectacular in the Spring. In Hermiston, there’s the Hermiston Family Aquatic Center, Butte Park with a great view if you hike to the top of the Butte, the Hermiston Raceway, Desert Lane Bowling Alley & Arcade, and Winery Tours.

The town of Hermiston has long been a stopover for travelers. The Lewis and Clark Corps of Discovery passed the distinctive outcropping of Hat Rock, now a state park, and wrote about it in their journals. The town site in the 1860s was known as an overnight spot for horseback travelers who frequented an Old West hotel and bar here. The Maxwell Siding Railroad Display recalls a former time when rail was king. Visitors can view the early 20th-century rail cars and collection of railroad memorabilia. (Tours are available by appointment.)

Umatilla is only a 12-minute drive from Hermiston and offers their own array of things to do. Head down to the river at the Umatilla Marina R.V. Park, a great spot for boaters, and the McNary National Wildlife Refuge, with walking paths around the ponds and sloughs that provide key habitat for migrating and resident water birds as well as other wildlife. Visit the nearby Pacific Salmon Visitor Information Center at McNary Lock and Dam to learn about the life cycle of salmon and the history of hydropower in the Columbia. Don’t miss your photo op with the giant cowboy sign outside the Columbia Harvest Foods store. Then head west toward the Umatilla National Wildlife Refuge, where you can look for burrowing owls, overwintering eagles, mule deer and badgers. 

We hope to see you there!

Tia Politi, President
Oregon Rental Housing Association

By: Tia Politi, ORHA Forms Committee Chair
January 2024

Senate Bill 1069

Service of notice by email-and-mail
In this month’s newsletter, you’ll find an educational article on Senate Bill 1069, written by Eugene attorney Brian Cox. In November, I let you know that considering the new law allowing service of notice by email and mail, the board would be deciding what to do with the Service Boxes on our forms. The Forms Committee provided the board with three options:

1)     Do nothing and discourage email-and-mail service.
2)     Add Email-and-Mail as a fourth option.
3)     Change the service box to allow for only two options – First Class Mail and Other.

The board voted unanimously for option 3 and here’s why. We already have many issues with our members serving notice improperly. I am an eviction specialist and staff five landlord helplines around the state as part of my business, and the biggest reason landlords lose in eviction court, or must re-serve a notice is due to “imperfect service.” Despite all our articles and classes and helplines, folks still mess this up more than anything else and it’s a bad thing to mess up! A tenant attorney would be happy to educate you for an exorbitant fee. We don’t recommend it for the casual landlord. What if you forget to email one of the tenants? What if their power is out? What if they lost their internet? SB 1069 was presented as something wonderful for landlords, but many of us disagreed.

The changes to our service boxes will happen over time, and existing forms are still usable. 

First Class Mail (with 4 days added to account for mailing time) is ALWAYS the most secure way to serve a legal notice – ask any landlord-tenant attorney, so why give our members another way to mess up? Instead, we encourage you to serve all notices by First Class Mail, and if you want to do it another way AND you know what you’re doing, you can fill in the “Other” method of service. 

If you still wish to serve legal notice by this method, the parties must enter into a written agreement after the tenancy begins and the tenant has taken possession of the unit. The agreement must specify the email address from which you will send or receive email notice and from which email addresses the tenant will send or receive email notice and provide for a change of email address, electronic payment or termination of the agreement by either party with three days’ written notice. The agreement must also include a state disclosure warning tenants about the consequences of their decision. Use Agreement to Exchange Notice by Email and Mail – ORHA form #O17. Please remember you may not copy our forms.

Refunding money by electronic means
There was another better change that came with SB 1069, an allowance for landlords to refund moneys owed to the tenant by electronic means. This is fantastic for both parties. How many times have you mailed a check the tenant never got? It’s happened to me - not a lot - but it’s a hassle when it happens, and the tenant is always mad even though it’s not your fault. 

Just like the allowance to email-and-mail notices, the agreement to refund money by electronic means must be signed after the tenancy has begun and the tenant has taken possession of the unit. We have a great new form available. Agreement to Accept Electronically Transferred Funds - ORHA form #O16. Please remember you may not copy our forms.

Childcare in Rental Properties
One of the most concerning legislative changes from the 2023 long session is the requirement for landlords to allow tenants to operate a for-profit daycare in the rental property. See my article later in the newsletter for specifics on the new law, and hopefully you will be somewhat reassured. Becoming a registered or certified family child care home is complicated – only the most responsible of renters will be able to meet the requirements. 

For landlords whose tenants meet those requirements, we have developed a new form In Home Child Care Agreement – ORHA form #MO7. Please remember you may not copy our forms.

Application to Rent
Form S1 has been updated to comply with the requirements of HB 2680 adding gender identity as a protected class and providing the required disclosure for landlords who assess an applicant screening charge. As I mentioned in November, if you don’t charge for screening the old forms are still usable, but if you do you must replace your forms, or you will be out of compliance with ORS 90.295 and may incur a fee of twice the amount of the screening charge plus $250. 

Eugene Lease Renewal Notification – ORHA Form MO8EU
This new form meets the requirements of the Eugene Rental Housing Code Ordinance 20694 that requires landlords whose tenants are in the first year of a fixed-term lease of less than one year to provide notification to the tenants of their right to request a renewal of their lease or receive relocation expenses of two months’ rent. 

The form can be provided at the time of move in or no less than 90 days prior to the expiration of the fixed term. Beware, the penalties for not serving the form are severe. Please remember you may not copy our forms.

Happy New Year!

Tia Politi, ORHA Forms Chair

By: Tia Politi
January 2024

With the passage of SB 599, effective January 1, 2024, landlords are now required to allow child care in their rental homes:  https://olis.oregonlegislature.gov/liz/2023R1/Downloads/MeasureDocument/SB599/Enrolled 

What I hope you may find reassuring is that your tenant can’t just open their door and watch however many children or babies they want under any circumstances. There are strict state requirements they must meet.

The Early Learning Division of the Office of Child Care oversees the licensing and statutory requirements for licensed child care in Oregon. The new law allows residents to perform child care as either a Certified or Registered Family Child care Home. There are different rules for each type. Registered child care homes have somewhat less stringent requirements than Certified child care homes, and you’ll need to know which type your renter is wanting to provide.

      329A.290 Qualifications of applicant for certification. A person applying for a certification for a child care facility shall demonstrate to the satisfaction of the Office of Child care that:
      (1) The moral character and habits of the person will not endanger the well-being of children for whom the person is to provide care.
      (2) The attitude of the person toward children and understanding of their needs qualify the person to care for children.
      (3) The person is physically and mentally capable of caring for children.
      (4) The facility and its operation are adequate to protect the health, the safety and the physical, moral and mental well-being of the children to be cared for in the facility, including but not limited to:
      (a) Adequate staffing by suitable persons qualified by education or experience to meet their respective responsibilities in the care of children.
      (b) Adequate physical facilities for the care of children, such as building construction, sanitation, plumbing, heating, lighting, ventilation, maintenance, indoor and outdoor activity areas, and fire protection.
      (c) A program of activities conforming to recognized practices in the areas of child welfare, education, and physical and mental health to provide opportunity for development and recreation.
      (d) Exclusion from the facility of individuals whose presence may be detrimental to the welfare of children, including exclusion of any individual with a criminal record indicating conviction of any crime which would bar the individual from operating or being employed in a child care facility under ORS 329A.260. [Formerly 657A.290] 

All child care providers must be checked for criminal history through the FBI’s nationwide criminal records check through the Federal Bureau of Investigation and must be continually registered in the Central Background Registry.

The rules for both types cover everything from application, registration, background checks, training, supervision of children, guidance and positive discipline, activity programs, mandatory abuse reporting nutrition, health, safety, sanitation, record keeping, and night care. There are rules for handwashing, nutrition, napping, field trips, playing, checking children in and out, parental notification, supervision, fire safety, providing emergency evacuation routes, reporting death or injuries of children under care and much more. Providers may not consume or be impaired by drugs or alcohol while caring for children. No illegal drugs may be stored on the premises. None of the child care children may be younger than six weeks of age.

Registered Family Child care Home Requirements Guidebook 
https://oregonearlylearning.com/wp-content/uploads/2017/03/OCC-0086-Rules-for-Registered-Family-Child-Care-Homes-EN.pdf 

Certified Family Child care Home Requirements Guidebook
https://oregonearlylearning.com/wp-content/uploads/2017/03/OCC-0085-Rules-for-Certified-Family-Child-Care-Homes-EN.pdf 
Certified providers operate under more stringent requirements.

Other requirements
A tenant who wishes to use the rental property as a family child care home, must pay in advance for costs of any modifications necessary or desirable for the tenant’s use, certification, or registration of the dwelling as a family child care home that are not required of the landlord under ORS 90.320 or the rental agreement.

The tenant must also provide at the election of Owner/Agent one of the following:

• Require parents or guardians of children under the care of the family child care home sign a document in which they agree for themselves and their children that the landlord, owner or association, as defined in ORS 94.550 or 100.005, is not liable for losses from injuries to their children or their guests connected with the operation of the family child care facility; and acknowledge that the family home care provider does not maintain liability coverage for losses from injuries to their children or their guests connected with the operation of the family child care facility; or,
• Require Tenant(s) to carry and maintain a surety bond or liability policy covering injuries to their children and guests that provides coverage of claims for injuries sustained on account of the negligence of the tenant or its employees. Names the landlord, owner, or association, as defined in ORS 94.550 or 100.005 as an additional insured and provides coverage in an amount no less than the amount established by rule by the Early Learning Division in consultation with the Department of Consumer and Business services.

All the attorneys I’ve spoken with about which option is best lean toward the insurance. Then the question is, how much insurance? So far, the Early Learning Division (ELD) has declined to provide any limits on the amount of insurance a landlord can require, or “reasonable requirements for landlords” but I did have a conversation with my insurance guy who says that most companies limit the number of children to six or it goes to a commercial policy. What’s enough coverage? $500,000? $1,000,000? $5,000,000? There’s no guidance available and he wasn’t even aware of the bill. He said a bond doesn’t make sense because those are not for injury, only financial issues. How much would a Liability Waiver protect you? I don’t know. But interestingly, he did say that any insurance company he knows of would still want waivers signed! Guess the legislators didn’t consult with the insurance industry when they were crafting the bill.

I hope that landlords around the state are somewhat reassured by the regulatory burden and oversight of child care homes. Only the most dedicated and responsible renters will be able to meet the requirements. And remember, you may revoke permission and terminate the agreement with cause if the tenant falls out of compliance that is not remedied within the timeframes imposed by the Office of Child Care. It falls on you to be aware of the requirements. 

We have a new form available Child Care Agreement – ORHA form MO6EU developed by Eugene attorney Brian Cox that clarifies the allowance and provides you with the ability to select which type of liability protection you feel is best for you.

If you have any questions about the requirements of either registered or certified child care homes in Oregon, reach out to:
Department of Early Learning and Care
700 Summer Street NE #350
Salem, Oregon 97301
1 (800) 556-6616 
early.learning@delc.oregon.gov 
https://www.oregon.gov/delc/

This column offers general suggestions only and is no substitute for professional legal counsel. Please consult an attorney for advice related to your specific situation. 

Rev 01/2024 

By: Tia Politi, ORHA President
November 2023

ORH Key PAC
As we gear up for the 2024 election cycle, it’s a good time to remind you of the good work done by the Oregon Rental Housing Key PAC. Please see the Key PAC message later in the newsletter for all the important reasons we make this annual “ask” and to donate.

Property Management Palooza!
Mark your calendars for our annual ORHA Property Management Palooza on Friday, May 17, 2024. This year’s event is being held in eastern Oregon at the Oxford Suites in Hermiston. Hermiston is gorgeous in the Spring, and they have a fantastic Aquatic Center, so bring the family for a tax-deductible learning trip while enjoying some time away. ORHA committee meetings will be held on Thursday that month, with the Board Meeting happening on Saturday. Planning begins early next year, and we hope to see you all there.

November Board Meeting Virtual
Our November Board Meeting is virtual. Look for details in Ben’s Office Report. We have some big decisions to make about form changes and new forms so Forms Committee Members, please prioritize being at our Friday Committee Meeting. We will be asking the board for a vote on direction on several urgent matters ahead of law changes pending for 2024. See the Forms Committee Report later in the newsletter for more information.

Remember, the board voted to stop meeting in January, so, no board meeting until March 15-17, 2024, in beautiful Bandon at the Best Western Inn at Face Rock. Look for an invite soon!

Wishing you and yours a Happy Holiday season. Thank you for your support.

By: Tia Politi, ORHA Forms Committee Chair
November 2023

New and revised forms 2023 – Part 1 

Rent Increases
The enactment of Senate Bill 611, on July 7, 2023, placed further limits on rent increases in the state. Due to the existing limits in the city of Portland and newly enacted restrictions in the city of Eugene, the ORHA Forms Committee has decided to remove Portland Notice of Rent Increase (Form O1PD) and change the existing form Notice of Rent Increase (Form O1) to accommodate the requirements of both cities, while also allowing the form to serve the rest of Oregon.

If you have older forms, they are still okay to use if you are aware of the new limits which are as follows: 

1. Rent may not be increased during the first year of tenancy.
2. Rent may only be increased once per year.
3. Unless exempt, rent increases are limited to 7% plus the CPI for the West Coast, OR 10%, whichever is less, unless exempt. Properties built within 15 years prior to the date of the notice of increase are exempt from the rent cap but if you’re claiming the exemption, you must provide supporting facts.
4. For rental properties subject to the requirements of the Portland Housing Bureau, or the Eugene Rental Housing Code, each city has different requirements. In both cities, if a Landlord increases rent by the maximum allowable amount they are liable for relocation expenses, unless exempt.

a. In Portland, you must provide specific notices with any notice of rent increase, regardless of whether it is to the maximum and regardless of exemption. Visit https://www.portland.gov/phb/rental-services/renter-relocation-assistance for more information.

b. In Eugene, unless exempt, if you will be raising rent to the maximum, you must provide the entirety of Section 17 in Ordinance 20694 (at the time of publication of this notice, we are still waiting for the Eugene City Manager to provide interpretive rules and the required language in a form). Visit https://www.eugene-or.gov/845/Rental-Housing-Code for more information.

We have also changed Notice of Lease Renewal (Form O3) to accommodate these changes at the state and local level.

The Forms Committee is pleased to announce the launch of Late Fee/Renters’ Insurance Change in Terms (Form O15). We will let you know when the form is officially launched. In the meantime, scan this QR code for samples of this new form and the updated Notice of Rent Increase (Form O1) and Notice of Lease Renewal (Form O3) along with instructions for their use.

Pending new and revised forms for 2024

Family Child Care Homes
The committee is working on finalizing In-Home Child Care Agreement (Form O6) for Tenants who wish to operate a Certified or Registered Family Child Care Home in the rental property on or after January 1, 2024, in accordance with SB 599A. Thanks to Eugene attorney Brian Cox, for his work on this form. We will be emailing a sample of the form with instructions just as soon as it’s ready, along with an educational article describing the requirements Tenants must meet to be authorized to offer such services and what Landlords can require. Before you panic, there are hefty requirements for both the property and the Tenant, so only the most responsible of Tenants will be able to meet the standards.

HB 2680 - New Disclosures Required for Assessing Applicant Screening Charges
Other pending changes coming January 1, 2024, include a change to Application to Rent (Form S1). We are removing specific language regarding Owner/Agent’s ability to charge noncompliance fees and just refer to ORS 90.302 to make room for new language requirements imposed by HB 2680A as follows:

“If Owner/Agent is assessing an Applicant Screening Charge in accordance with ORS 90.295, promptly after each screening conducted by a tenant screening company or consumer credit reporting agency, Owner/Agent shall provide the Applicant with confirmation of the screening, including a copy of a receipt from the company or agency. If, prior to conducting or ordering any screening an Applicant withdraws their application in writing, Owner/Agent must refund the screening charge within 30 days. If Owner/Agent fails to comply with these requirements, the tenant may recover twice the amount of the screening charge paid plus $250.00.”

Additionally, gender identity is a new protected class that will be listed on the Application Screening Guidelines page of the form. Chapters will need to replace these forms; however, for landlords who don’t charge a screening fee, the existing forms are still useable. We will notify you when they are ready to order and available at the Forms Store.

SB 1069 - Change in Allowance for Service of Notice

In accordance with SB 1069B, beginning January 1, 2024, landlords will have the right to serve notice by email-and-mail. Like post-and-mail, but instead of posting, you email a copy of the notice in addition to sending it by First Class Mail. Like service of notice by post-and-mail, you must meet specific criteria to be able to serve notices by this method. To allow for this type of service, the landlord and tenant must enter into a written agreement after the tenancy has begun and the tenant has taken possession of the unit, so you can’t make it a condition of tenancy. The agreement must list the email address(es) of both parties and allows either party to change their preferred email address with three days’ written notice. The agreement may be cancelled by either party with three days’ written notice. We are currently in discussion with the board and will decide at the November meeting regarding changes to the service boxes of our forms. We will let you know the outcome and send an eblast when the form is ready.

SB 1069 - Change in allowance for landlord return of moneys owed by electronic means

This bill also allows for a landlord to refund any amounts due to the tenant by electronic means with the written agreement of both parties after the tenancy has begun and the tenant has taken possession of the unit. We are developing a form to allow for this and will send out an eblast when the form is ready.

Remember, if you have any suggestions for improvements to our existing forms, or want us to add new forms, you can email your ideas to forms@oregonrentalhousing.com.

Tia Politi, ORHA Forms Committee Chair