September 1^st, 2018

Dear Colleagues,

This Primary Election, our industry experienced a tremendous defeat with the loss of Senator Rod Monroe (D-Portland).  During the 2017 legislative session, he stood up to Speaker Kotek and the House of Representatives bill to end no-cause termination notices and impose rent control.  Unfortunately, that resulted in the advocates taking him out in the Primary election.

We can’t let this happen again.  This coming November election is critical.  Either, we elect legislators who will help us manage our properties or we may face future set backs with rent control and/or the loss of no-cause evictions.

The Speaker sees the defeat of Senator Rod Monroe as one step closer.  You remember the Oregonian headline...

Kotek pushes for statewide cap on rent hikes, end to 'no-cause' evictions

Never before has our industry been this aggressively attacked with our ability to control our properties in jeopardy.

This is a special appeal because we need to raise $50,000 for our PAC in the next few weeks to defend ourselves or face the consequences.  So it’s time once again to please contribute to the Oregon Rental Housing KEY-PAC.

Your contribution of $5,000, $1,000, $500, $250 or $100 will go a long way this election cycle to help stop these attacks!  A lot is at stake next legislative session.

ORHA’s legislative successes are built upon getting the right legislators elected!  Regardless of a candidate’s political affiliation, ORH KEY-PAC helps elect candidates who will help protect your ability to own, operate and manage rental property.

Over the years, ORH KEY-PAC has made a huge impact in elections that have ultimately helped the rental industry. 

This election, we need two to three times the amount you usually contribute to defend ourselves next legislative session.

So please, support the ORH KEY-PAC and support legislators who will understand and protect our industry. We simply can’t afford not to.

Sincerely,

Jim Straub
Oregon Rental Housing Association
Legislative Director

It’s a beautiful summer day in July and I’m sitting at my desk pondering the hotline calls I have been fielding, currently 4 for the day.  As I begin to dial  the 4^th caller, I’m betting to myself that it will be a question centered around the “90-day rule”.  That’s the term I hear often from callers who are mostly private landlords trying to navigate increasingly turbulent waters in the rental industry.

It is quickly becoming evident that there is a lot of confusion around recent city ordinance’s and changes to the ORS statutes that govern Landlord Tenant law, and it’s no wonder as some Oregon cities take up action outside the legislative process.

What is the 90-day rule/notice?  Is it rent, no-cause termination notices, or both?  The answer is yes. Where does a 90-day requirement apply? Does it apply statewide or within city boundaries?  That depends on which 90-day notice we are talking about.  And, does it differ from area to area?  Does it include rent control? Well it’s no wonder there is confusion as the answers vary from yes, maybe and it depends.

Caller number 3 had asked “How long of a notice do I need to give for a rent increase?”  I answer “90 days if you have a month to month rental agreement, after the first year of occupancy”.  His next question “and I am limited on the amount of rent increase due to rent control”?  I ask him where his rental property is located.  The answer will dictate my response. The next call centers around the no-cause notice timeline, is it 30-60-90 days?  Again, the response is centered around how long the tenant has resided in the home and where the home is located. 

While the 90-day notice timeline for a rent increase is statewide, cities such as Portland have adopted rules pertaining to rent increase amount and the timing, and other areas within the state that do not fall under city ordinances, such as properties residing in outlying county areas are not bound by such rules.

This holds true with notices of termination as well.  While the State has not yet adopted rent control as most would know it, Portland has included a relocation assistance program which adds to the confusion that has spread across the state. 

The city of Portland has adopted relocation assistance related to rent increases that exceed 10%.  Portland, Milwaukie and Bend have all implemented an ordinance within their city limits.  It is important to understand each as they vary slightly, one from the other.  Additionally, cities that create their own ordinance’s may make changes or have sunset clauses.  Now more than ever it would seem, a landlord, professional or private, needs to be up to date on the laws. 

The Oregon Legislative Information System has a link which provides a detailed breakdown of no-cause terminations and rent increases in Oregon https://olis.leg.state.or.us/liz/2017R1/Downloads/CommitteeMeetingDocument/131384. 

While members of chapters that make up the Oregon Rental Housing Association have great resources, such as the hot line mentioned here in, it is not legal advice.  If you find yourself in unknown territory and need advice, always seek competent legal counsel.

As I write this, what occurs to me most about answering hotline calls are the desires of landlords to meet their obligations, to understand impact and to be fully educated. I am proud of our rental association and I am proud of the individuals that own or manage rental properties statewide with integrity and knowledge.

With more potential law changes in our future, you can bet it will only get more interesting and potentially more confusing but without question, there has never been a more exciting time to be a landlord.  Keep those calls coming and together we will all better navigate future changes.

Legislative Update

-Jim Straub, ORHA Legislative Director

A big thank you to all the overwhelming number of ORHA members who showed up in Salem to testify against House Bill 2004 on March 2nd. For those of you who were not there, we literally had hundreds of landlords who showed up to testify. It was an incredible and impressive sight. Unfortunately, not all of us were able to testify at the 8:00 am hearing due to time constraints, but to those of you who were able to return to the 5:00 pm hearing, an extra thank you.

Terry Turner, our ORHA President, wonderfully represented our association with powerful, real and impactful testimony based upon her personal experiences after many years as a property manager. We should be proud as members of our organization to be so well represented by such an articulate advocate for our industry. Thank you, Terry.

We asked for your support and ORHA members overwhelmingly gave it. We had the strongest show of landlord support that I have ever witnessed. I’m very thankful for all of our members who gave testimony that spoke from the heart and did so in a manner that was fair and respectful. Communicating in this manner was important to show not only the legislators but, also the tenant advocates that we communicate in a respectful way.

The next step in this bill’s process is the committee will decide whether or not they will propose amendments to the bill or vote to move the bill as currently drafted out of committee, to another committee, or onto the House floor.

If it gets passed onto the House, it will be scheduled for a vote by the entire House of Representatives. If passed, it will then go to the Senate Chamber, where it will be assigned to a committee, and we will have another round of public testimony.

We won’t know exactly what will happen yet or the schedule until the coming weeks. Typically, we are told a week or so in advance when public testimony is to take place. We’ll let you know as soon as we know the schedule.

Click the link for our latest bill tracking report from ORHA’s lobbyist Shawn Miller. The document contains information on the bills that were introduced since the bill introduction deadline. If you click on the bill number or the bill info, it will take you directly to the full text of the bill’s language on the Oregon State Legislature Website.

There is still time to contact your state legislators about the bills we oppose. Do it in writing and by telephone. Make your voice heard. Go to oregonlegislature.gov for an interactive map to find your state legislator.

Morning Session

Evening Session
(click a button to watch the testimony)

In its unending search for new victim classes, the Portland City Council voted unanimously to pass an “Emergency” ordinance requiring rapacious landlords to pay tenants relocation expenses upon termination of tenancy without cause or substantive rent increases.

My only question is why stop with relocation expenses?  Everyone knows how avaricious property owners are.  Why not require them to foot the bill for the first six months’ rent as well?   Pay no mind to the years of sweat equity property owners have put into their respective properties or the increasingly onerous burden of taxes and fees leveled by an arrogant, insatiable municipal bureaucracy they must bear.  If real “social justice” in Portland is ever to be achieved, the playing field between the haves and have nots must be leveled.

Unfortunately, the ones who will suffer the most will not be the greedy, grasping landlords but the tenants themselves.  The chilling effect this ordinance will have on all tenant evictions cannot be overstated.  If landlords were disinclined to deal with trouble makers before, they will surely turn a blind eye now.

This will further degrade the quality of life enjoyed by the majority of tenants who live and play by the rules.  They will be disinclined to complain about a neighbor knowing in advance that satisfaction is unlikely.  At best they will be ignored.  At worst, they will be branded as haters and discriminatory. Reminds me of that old saying, “The road to hell is paved with good intentions.”  More often than not, the good intentions of government, when acted upon, have unforeseen bad consequences.  This is no exception.

Robert S. Smith
Peregrine Private Capital

Robert Smith has worked with, guided and represented Oregon investment property owners for more than 25 years.

The city of Bend’s urban growth boundary expansion plan was approved Tuesday by Oregon’s Department of Land Conservation and Development. The expansion adds 2,380 acres of land the city can develop by moving the line that separates the rural county from urban development.

Allowing for more than 17,000 homes, about half of the land will go to housing. More than 800 acres are slated for employment, adding room for more than 21,000 jobs.

If no valid appeals are received by the state by December 5th, landowners can begin submitting plans to the city to redevelop properties. Plans for small developments such as new houses or duplexes could be approved within weeks, while planning entire neighborhoods could take more time.

The current plan is a culmination of nearly a decade of work. The state turned down a 2010 proposal that had asked for an 8,000 acre expansion.

The election season is over, finally!  Now what?  How can you effect change in your city and in our state?  There are many things you can do, but start here:
1. Join a local chapter.  Your voice is stronger when you are one of many.    When we talk about members in Oregon, we need to be able to count you.  It’s important that we have accurate numbers not just of owners and managers, but how many units you represent.
2. Get active and stay active.  You need to have the most current information and you need to know what steps to take to and when; to be able to influence your local representatives.  Getting active means going to monthly meetings and actually reading newsletters and emails.
3. Help your local chapter board; maybe even serve on the board.  Every local chapter needs more help.  It’s true that about 10% of the members of each chapter do about 90% of the work.  Maybe you can send out emails, update lists, help with the newsletter or even become an instructor for classes, greet people at meetings. 
4. Talk to everyone you know and help educate the public.  You are the best person to help the public understand the true nature of the rental housing industry.  You know what you do to provide quality housing for tenants.  So, talk about it!  What will be the effect of Rent Control?  Will rent control cause you to charge higher rents?  Will you change your business practice of only raising rents on a yearly basis and then only when your expenses increase?  How will prohibiting No-Cause Notices change the way you do business?  Will you still be willing to take a risk on a less than “perfect tenant”? Will you be able to charge a smaller deposit or allow payments on deposits for a tenant that has great rental history but spotty credit? Will you be forced to charge higher deposits because you know that you will have to serve a with cause notice if something goes wrong?  Will you be forced to serve a “border-line problem tenant” with a 30 Day with Cause Notice and damage a tenants’ rental history?
5. Become an active learner. As a rental property owner/manager you have a responsibility to be educated.  You should know Landlord/Tenant law.  We often hear, “Really?  When did that law change?”  Unfortunately, the answer is usually many years ago.  The complaints from tenants about serving notices incorrectly, or telling tenants that they have to move out in 30 days, when the law gives them 60 days, causes lawmakers to think that they need to make more laws and add fines for improper or unfair business practices.  Get educated and encourage every rental owner you know to attend classes and seminars. 
What can you do?  How can you really have an effect on your community?  You don’t need to have hours of free time or be an expert public speaker.  Become a member of your local chapter and help it become strong and vital.  Talk to everyone you come in contact with, and make sure that your understanding of the law is current.

While it may seem clear on first reading, the recent change in statute regarding rent increases is leaving even the attorneys scratching their heads.

One issue that seems clear is that a lease renewal is exempt from the rent increases that apply to month-to-month residencies. A new lease or lease renewal is a contract with its own terms that are not affected by this change in statute.

It is also clear that you may increase the rent in a month-to-month tenancy with a 90-day written notice, as long as it doesn’t take effect prior to the end of that first year.

What is not so clear is what happens when by its terms, a lease expires and converts to a month-to-month tenancy. After much discussion and attorney consultation, the Oregon Rental Housing Association, recommends that the most conservative and safest interpretation is to count the first year of tenancy as starting on the day the property transitions to a month-to-month tenancy. After that clock begins, you may lawfully serve a 90-day notice of rent increase so long as it will not be effective prior to the end of the first year of the tenancy (from the day it converted to a MTM).

There is uncertainty and ambiguity regarding this law change, and on first look it may appear that “first year of tenancy” can include the term of a lease; however, this is a potentially risky move and we don’t want you to take chances that could hurt you in the courtroom, nor do we want any of you to be the test case for this new law. Look for more answers in the coming months and be assured this will be addressed and clarified in the next legislative session. Call the Helpline for assistance if you have any questions about your specific situation.

Legislator's proposed 'tenant protections' won't protect tenants: Editorial

It's hard not to want to do something in response to the horror stories filtering out of what life in a housing crunch has become. Tenants and advocates talk of massive rent hikes driving seniors out of apartments, and of families so desperate to stay in their units that they don't complain to landlords about moldy conditions. Children cycle through ...

Read More ...

As you have most likely heard by now, the city of Portland has passed an ordinance that requires landlords to give tenants 90-days notice to vacate for No-Cause Notices, and 90-days notice to increase the rent by more than 5%.

PAROA & ORHA of course have opposed this ordinance and we will definitely be opposing any state wide changes that resemble this. The reason the city of Portland gave for this ordinance is that; rent has gone up considerably over the last 1-2 years, and the steep incline in rent costs hasn’t been met by an increase in income.

This new ordinance by the city of Portland doesn’t solve the actual problem. It is essentially putting a bandage on an injury that requires stitches. The real “problem” is that demand has heavily outweighed supply in the rental market. This has been caused by a number of things including; out of state residents moving into Portland, an influx of new renters that used to be home owners prior to the housing market crash of 2008, and financial institutions not being willing to lend on new construction of commercial buildings like apartment complexes.

This ordinance will result in a negative impact for tenants. Many landlords have used No-Cause Notices as an easy option for a tenant to move out peacefully and avoid an eviction being on their record. We will most likely see an increase in for cause evictions due to landlords not wanting to wait 90-days to have a “bad” tenant move. Another serious issue is that adding any regulation to an industry creates more barriers to entry and will make investors think twice before getting into the rental business. This is the opposite of what really needs to happen to correct this issue.

Long story short, we are going to exit the Portland market in 2016 despite having rentals there for 25 years. The market has just become too ridiculous - and costly - to navigate. 

In order to solve the problem of an extremely low vacancy rate the city of Portland needs to investigate ways to incentivize developers to build affordable housing and to speed up the process. If there are permits or zoning changes that need to happen for a rental unit to be built, then it should be fast tracked through the city’s system. This will get more units to the market faster and thus equalize the supply and demand issue in the Portland housing market.

This may not be the end of this issue though. There is a good chance that we will see something like this at the state level next year. So be sure to keep your eye out for something like this and reach out to your state representative when that time comes. We need solutions to the actual underlying problems and not short sighted fixes that will cause more problems.

The news making headlines across Oregon and around the nation is that there are not enough available rental units. The solution proposed by tenant's rights groups and some legislators is to eliminate no cause evictions and limit rent increases. ORHA is committed to encouraging builders, contractors, developers, and state and local programs to help address the lack of affordable housing.

What is the solution, and how can we help? First, we need to identify the issue. Solving the affordable housing crisis won’t be done by forcing an artificial rent cap or even by slowing down rent increases. Housing costs are driven by the same issues that all other commodities are driven by, namely the market, the costs of labor and materials. If there is less of anything, prices will naturally and automatically go up. It’s just plain ignorance of the law of supply and demand to suggest that suppressing rental prices will magically solve the problem of a lack of housing units. Anyone who says that rental prices are why people can’t find a home isn’t listening to themselves talk. If there are ten people looking for a home and there are only five homes available in the area, logically there will be five people who can’t find a home; the price of the home isn’t the issue. Every study that looks at this housing “crisis” notes that the vacancy rate is extremely low everywhere in Oregon. If the rental price was the issue, then our vacancy rates would be high, not at all-time lows.

Second, we need to promote a faster permitting process, tax deferment programs, tax waiver programs, lower bank loan rates and loan incentives; and city and county grants to encourage builders to develop more affordable housing.

Third, Housing Authorities are working with reduced funding, while at the same time serving a dramatically increased client base. Local housing authorities need more funding now, and their clients need longer time frames to be allowed to look for housing. Rental dollar limits need to be adjusted for today’s market not based on the rates from three years ago.

Most importantly, the public needs to be educated as to what “affordable housing” means. Most would describe affordable housing as basic housing with no upgrades. These units are built at a lower cost, so that they can be rented at lower rates. They are built specifically for a population that must pay considerably less than the market rate. The usual target for this type of housing are the disadvantaged, the elderly and the disabled. Residents often have some kind of rental assistance.

Many Oregon cities are currently working on programs, grants and incentives to encourage building more affordable housing. We need to focus on the problem of growing a larger inventory of rental units, and not get sidetracked by the notion that rent control or rental rate “management” will solve the problem. Cities and counties have complete license to lower the costs of development, and to streamline the permitting process which is a huge issue with new construction.

ORHA has been committed to working with local Housing Authorities for over 20 years and many of our local associations have employees of Housing Authorities on their Board of Directors. Together, we are committed to encouraging rental owners to work with lower income tenants. Oregon’s many Housing Authorities will agree that their main impediments to serving more clients are a lack of funding and a low vacancy rate.

Understanding how we got to this crisis mode would assist our legislators’ to better address the real problem. The 2008 economic downturn caused many people to lose their homes and they became renters. We also have thousands of college graduates who in the past were starter home buyers that are now renters because of the sluggish job market and high student loan debt. This issue isn’t the fault of greedy property owners who during the downturn; were forced to accept rents far below the level of making any kind of profit. This is a systemic problem that will take honest and creative participation of many segments of our society.

We need more rental units, not rent control by any name!