ORHA News

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

By: Tia Politi
November 2023

When I give classes to tenants, I warn them:  Who you choose to be roommates with is only slightly less important than who you choose to marry. Platonic or romantic, relationships can fizzle, and what is normally a private matter between adults can become a landlord’s problem when relationships between tenants go south. In both cases, the roommate relationship creates not only personal entanglements, but legal ones as well. You can avoid choosing sides, but when their break-up drama impacts their tenancy, your involvement may be required.

Terminate MTM
Throughout most of my career in private property management, I always thought that in a month-to-month agreement, one or both tenants could simply give their 30-day notice and move out and be released from liability at that time – I was wrong. To remove themselves from a periodic rental agreement requires that all parties agree, including the landlord and the other tenants. If everyone agrees to the release of a party or a tenant swap as often happens in college rentals, we have a great form – Add or Release Tenant Rental Agreement Addendum – ORHA form #O8 – that can help you accomplish the removal and/or addition.

The form makes it clear that the person leaving is not entitled to a deposit refund and anyone signing on accepts responsibility for the current condition of the property. Typically, in a swap situation, the incoming roommate will pay the departing roommate some amount of the deposit they paid on moving in and they work it out everyone signs and moves on - but not always. The departing tenant may want all or part of their portion of the deposit returned and may balk at signing an agreement that waives their rights. The remaining tenant may insist that any damage was caused by the other and is therefore not their responsibility or they may not want to release the departing tenant for other reasons.

But both parties have incentives to cooperate. For the departing tenant they don’t have to give up their right to a deposit accounting and potential refund, but they stay on the hook for money owed at the end for damage, rent or whatever. For the remaining tenant, they don’t have to sign a release, but the departed tenant retains the right to reoccupy the unit and can veto adding anyone else to the agreement.

Depending on the terms of your rental agreement, you may have the right to have everyone move out based on notice given by one tenant. Sometimes the revolving door gets old, and you just want to start over, or maybe it’s your opportunity to do something different with the property. Whatever the reason, if your agreement states that notice given by one is binding on all, you can make the decision to require everyone to vacate. If you are in this situation where one person provides their notice and you want everyone to move, you might consider sending a Confirmation of Tenant’s Notice to Terminate – ORHA form #T12. This form gives move out instructions and the date of move out which is sure to initiate a conversation with the other tenants who have not given notice. The others may be unhappy with the decision so be ready for some push back.

Terminate FTL
When a fixed-term lease expires, however, any single tenant can terminate their tenancy and not be held liable on and on. They have the right to leave at the end with proper notice. In this case, there’s no requirement for the landlord or other tenants to release them, they may demand their portion of the deposit back, and you may have to provide it. Just like with a MTM agreement, if your contract has the proper language, you can require that everyone move out and start over, or work with the remaining tenants to add a new household member.

Back in the day when I was managing private property, I had a group of tenants in a lease where one wanted out at the end and insisted on the full return of her deposit. Because the others wanted to stay, they elected to refund her portion of the deposit, and the remaining three never replaced her and just took responsibility for the extra rent. The remaining tenants accepted that she wasn’t being charged for carpet cleaning, etc., but it did save us all a lot of hassle, so in that situation it worked for all concerned.

In another situation, I had a group of three campus tenants, two of whom wished to renew their lease for another year and one of whom wanted to move out at the end of the lease term. Even though she wasn’t required to, the departing tenant signed a lease renewal with her remaining roomies for another year, but they had another applicant who we approved and who took the departing tenant’s place. The departing tenant also agreed to work out the return of her portion of the security deposit with the incoming tenant, so my job in this case was easy – add one tenant and remove another on the lease renewal. They dealt with the security deposit on their own, and we released her from any claim for or responsibility to the new lease. This scenario only worked because everyone agreed in writing.

In the event that a departing tenant to a fixed-term lease is not okay with this scenario, and you can’t or don’t want to force everyone out, you and the tenants will be faced with a few choices: 1) Refund the departing tenant’s portion (best have confirmation that everyone agrees to the amount) of the deposit paid on move in, and allow the remaining tenants to find a new qualified roommate who will repay that portion of the deposit to you when all parties sign a new lease; 2) Collect a new deposit from the tenants who wish to remain as well as the ones who will be moving in. Then, when the current lease expires, do a walk through with both the departing and remaining tenants. Account for any visible damages and charge those to the current tenants’ deposit, provide a written accounting and refund any remaining balance in the names of all the tenants within 31 days as the law requires. 3) Have all of the tenants move out, do the work to turn the property, and reconcile their deposit issuing any refund in all their names. The remaining tenants can then pay a new deposit and move back in on a new lease. This is the cleanest option but is a huge hassle for all concerned.

And you don’t have to agree to release or add anyone if you don’t want to unless a lease is being broken for other reasons. Victims of domestic violence, sexual assault, or stalking (and effective January 1, 2024, victims of bias crimes as well), have special termination rights under landlord-tenant law, and so do active-duty military servicemembers who are being deployed. Otherwise, a tenant can choose to leave the property and not live there but they remain liable until the lease ends.

I dealt with a situation where two men rented a two-bedroom campus apartment, but apparently did not know each other very well. One of the tenants started smoking pot in the unit and inviting his friends over for marathon video game sessions. The other tenant wanted to sleep and study and had done everything he could to get his roommate to get along, but in the end, he chose to move out rather than try to keep working on the situation. With multiple complaints from neighbors about pot smoking and loud music, we issued a Warning Notice followed by a 30/14 – a Notice of Termination with Cause. The behavior of the remaining tenant improved for a while, but in the end, we evicted for failure to pay rent and his continuing to smoke pot in the unit. Because all an eviction decides is possession, the eviction papers only named the remaining tenant who remained in the unit; however, because we declined the opportunity to release him from the lease, the departing tenant and his co-signer remained liable for the unpaid balance and damage to the unit, including eviction costs for his pathetic roommate. It was a harsh lesson.

Abandonment
I’ve also had situations where one roommate just moved out and moved on without a word to their roommates or me, their manager. What I’ve always wondered about is whether at some point they could be considered to have abandoned the rental unit. ORS 90.147 Delivery of Possession talks about a landlord receiving possession of their property by abandonment if they “reasonably believe under all the circumstances that the tenant has abandoned the unit and no longer intends to assert a right of possession.” This statute deals with the landlord recovering possession of the unit, but can it apply to one tenant only when the landlord does not get possession of the unit and the tenancy continues? Sometimes reaching out to let the departed tenant know they’re still on the hook can get a response, but sometimes not. Can you just remove them? Allow the remaining tenant to add another? I don’t know. This may be a good time to seek some legal advice.

Adding Tenants
If you are amenable to adding others to an existing agreement, in addition to signing the Add or Release form, I recommend that any addition to the household also sign the existing rental docs, or if your agreement is older, it can be a great opportunity to update your docs and you can have everyone sign an updated agreement and addendums.

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 10/2023

By: Tia Politi, ORHA President
October 2023

Meeting report
We had a fantastic turnout for our Bend meeting this year and a record number who stayed for Teams training on Sunday morning. Since we only meet in person four times a year, we need to make the most of it and we sure did. The Leadership Dinner was great, and Committee Chairs shared their updates for the year. We then headed back to McMenamins Parish House for fun and games. After the board meeting Saturday, we headed back to the house and out the back door to the patio where we ate, drank, and made merry while listening to lively Irish music.

We are working diligently to include fun with the work!

The board voted to approve bylaws change related to profit sharing for the Forms Store. Sharing will now happen once per year instead of twice. The formula will remain the same, but some chapters were noting that the twice per year formula was having a negative impact on their sharing amounts as some six-month periods were falling when they had fewer members. Associations will now receive one annual payment at the end of each fiscal year that will more accurately measure membership levels. Checks for chapters who are eligible for profit-sharing will be sent no later than August 31 of each year.

Upcoming meetings and meeting changes
Since our board has grown, the Executive Committee is making some changes to how our meetings will run. With a larger group it’s more challenging to keep things on track so our meetings will be much more formal moving forward. We will be strictly following Roberts Rules of Order because meetings aren’t as productive if we don’t stay on track. Past President Jason Miller has agreed to serve as Parliamentarian to help me keep things running smoothly. There will be a reminder at the beginning of each meeting so we’re all on the same page.

Our November meeting is online only, and barring any unforeseen emergencies, no meeting in January. Our March meeting will be held in beautiful Bandon on March 15-16, 2024. Look for an announcement from the office about reserving your space, and in May, we’re heading east for a Property Management Palooza in Umatilla. Stay tuned for more info.

Fentanyl
I got a call from a Lane member last month, here’s his story:

“We entered an apartment after a Sheriff lockout. Upon entry the police notified us about a bunch of drug paraphernalia scattered throughout the apartment. Needles, foil, bongs, and pipes. We wore gloves and proceeded to clean the unit out by carefully removing the bigger items that we could not use a shovel to remove first. We then used scoop shovels to clean the remaining apartment. Once cleaned out, we proceeded to remove the carpet. Upon removing and disposing of the carpet into the dump trailer, one of my employees started feeling dizzy and nauseous. We helped him to the ground and called 911.

With the knowledge of the apartment condition, we were concerned he may be experiencing some kind of drug exposure – likely fentanyl. The EMT’s showed up, administered Narcan, and he immediately started to feel better. We then took him to the ER for testing to make sure it wasn’t some other kind of health emergency. Upon further testing his health was good but his urine screen showed trace amounts of opioids (he is not a drug user).

So, what we learned is: We should have had masks on, disposable paper suits on, and worn safety glasses. I have been in this business for over 20 years. We have cleaned out and removed carpet from hundreds of apartments. I learned that we as honest hard-working people cannot take things for granted any longer. The things people are putting in their bodies can hurt or kill us without even knowing it’s happening. Luckily, he wasn’t working alone and was able to get help immediately. We will always have paper suits, masks, gloves on for carpet removal and clean-outs from here on out. This small exposure did affect him for about three days mentally and physically. Be safe out there!”

It seems that Narcan should now be part of the standard maintenance supplies you keep on hand. I looked it up online and you can purchase Narcan at any pharmacy like Walmart or CVS. So awful that we must do this. Check out the DEA fact sheet – click here.

By: Tia Politi, ORHA President
September 2023

Looking forward to seeing our chapter delegates at our September meeting in Bend for committee meetings and the Leadership Dinner on Friday the 15^th, and the board meeting on Saturday the 16^th. If you’re able to stay over on Saturday, a group of us will be heading to McMennamin’s Old Francis School after the meeting to enjoy their “Halfway to St. Patrick’s Day” celebration with The Ballybogs a traditional Irish music band from 3:30 – 6 p.m., followed by Major Dudes – a Steely Dan Tribute Band from 7 – 9:30 a.m. for those who can stay up later. After all that hard work we need some fun and R & R. Hope to see you there!

The September meeting is where we set our annual calendar for the next year. Not as challenging as it used to be now that we have set venues for two out of our four meetings each year. We’ll be deciding on venues for March in the southern Oregon region and May 2023 when we do our property management seminar.

On August 25, 2023, the city of Eugene enacted Phase II of its renter protections. Read my article later in the newsletter. Part of it is quite complex with various notice periods that if missed, will incur very high penalties. Just like with Portland’s ill-advised overlays to state law, I continue to hear about landlords selling and taking their money out of the area. Of course, the big guys keep building their giant complexes so on paper it may look like we’re adding units but not everyone wants to live in an apartment. Anyway, it is what it is, and we must adapt. The Forms Committee is racing to provide forms to meet the need, but they aren’t quite ready yet.

After the September meeting we won’t meet again in person until March. We meet virtually in November and remember at our July board meeting we voted to stop meeting in January, so we all have time to get our taxes done!

Hope to see you then.

By: Tia Politi, ORHA President
August, 2023

Effective August 25^th, 2023, Housing Providers with rental units inside the urban growth boundary of the City of Eugene are subject to new regulations. The updated code can be viewed at this link: https://coeapps.eugene-or.gov/cmoweblink/0/edoc/3651002/Ord.%2020694.pdf.

The new regulations encompass changes to allowable security deposits, screening processes, rent increases and tenancy termination and provide for relocation payments of two months’ periodic rent if you terminate a tenancy without cause or for a Qualifying Landlord Reason. It also extends the notice period for no-cause terminations from 30 to 90 days. 

Security Deposits
Eugene Housing Providers may charge a security deposit equal to no more than two months’ rent, with two exceptions. One exception is for Housing Providers who choose to rent to an applicant they could have denied due to risk factors identified in ORS 90.304, allowing Housing Providers to increase the security deposit to three months’ rent. You may also charge an additional deposit for an agreed-upon modification of the terms and conditions of the agreement for a pet or other cause if the additional security deposit relates to the modification. If you charge this additional amount for the reasons cited above, you must give the tenant up to three months to pay the increased deposit.

Take-Away: If you decide to take a chance on an unqualified applicant or if you agree to a material modification to their rental agreement, you may charge an additional security deposit equal to one months’ rent to address that change and/or mitigate your risk.

ORS 90.304 states that a Housing Provider can deny an application based on:

(a) Rental information, including:
(A) Negative or insufficient reports from references or other sources.
(B) An unacceptable or insufficient rental history, such as the lack of a reference from a prior landlord.
(C) A prior action for possession under ORS 105.105 to 105.168 that resulted in a general judgment for the plaintiff or an action for possession that has not yet resulted in dismissal or general judgment.
(D) Inability to verify information regarding a rental history.
(b) Criminal records, including:
(A) An unacceptable criminal history.
(B) Inability to verify information regarding criminal history.
(c) Financial information, including:
(A) Insufficient income.
(B) Negative information provided by a consumer credit reporting agency.(C) Inability to verify information regarding credit history.
(d) Failure to meet other written screening or admission criteria.
(e) The dwelling unit has already been rented.

Remember that under SB 282, evictions or money owed to a prior Housing Provider from a tenancy that terminated during the COVID-19 Protected Period (April 1, 2020 – February 28, 2022) cannot be considered when evaluating an applicant until after January 2, 2028. (SB 291)

Screening – First Come, First Served

If you publicly advertise a rental unit in Eugene, your ad must specify the date and time you will begin accepting applications and the dates of your “open application period.” Open application period is defined as “The period of time during which a landlord will accept rental housing applications for a publicly advertised dwelling unit.” You get to decide what period that is – 48 hours, 72 hours, one week?

You must also include information in the ad regarding an applicant’s right to request more time to ensure that they have “meaningful access” to compete for the dwelling unit. Meaningful access is defined as, “The ability of a person with limited English language proficiency to use or obtain language assistance services or resources to understand and communicate effectively, including but not limited to translation or interpretation services.” If a limited-English proficiency applicant requests additional time and if they submit their completed application within 24 hours of their request, the date and time of the request will serve as the date and time of receipt of the application for determining the order in which applications are received.

Here’s one possible statement to consider including: “Applications will be accepted between September 2 - 5, 2023. If you are an applicant with limited English proficiency, you are entitled to submit a request for an additional 24 hours to provide you with more time to seek language assistance services for the purpose of complying with the Housing Provider’s screening and application requirements.”

Under state law, if you assess an applicant screening charge, you are required to notify the applicant of their position in line, but not required to if you don’t charge screening fees. However, the Eugene Code requires that regardless of whether you assess a charge for screening, you must provide that information if the applicant requests it. Also, regardless of whether you assess an applicant screening charge, you must digitally or manually record the date and time of receipt of each application received during the open application period and while you may simultaneously screen multiple applications. You must accept, conditionally accept, or deny applications in the order of receipt.

You are required to offer the unit to the first qualified applicant who applies in the order indicated above, and if that applicant does not accept the offer to rent within 48 hours of the time the offer is made, you may move on to the next applicant. If a prospective renter applies prior to the open application period, their application is considered received eight hours after the start of that open application period.

What does it mean to accept an offer to rent? The ordinance does not say, but to my mind, accepting an offer to rent would mean either the Resident pays all funds due and takes possession of the dwelling unit if it’s move-in ready, or paying a deposit-to-hold and signing the Deposit-to-Hold Agreement if it’s not, thereby obligating themselves to rent at some point in the future. In any event, you must provide 48 hours for them to accept or decline your offer before moving on.

You may refuse to process applications under the following conditions:

1.     The application is materially incomplete.
2.     The application has been submitted by an applicant who has violated a rental agreement with the Housing Provider three or more times during the 12-month period preceding the date of the application, and the Housing Provider can provide documentation of the violations.

The following are exempt from the new rules about screening under the Eugene Rental Housing Code:

1.     Affordable housing providers (Typically, agencies who provide HUD-financed housing such as Homes for Good, ShelterCare, or St. Vinnie’s).
2.     A dwelling unit occupied by the Housing Provider as their principal residence.
3.     A unit of middle housing when the Housing Provider’s principal residence is another unit of middle housing on the same lot or parcel.
4.     An accessory dwelling unit located on the same lot or parcel as the Housing Provider’s principal residence.
5.     A dwelling unit that will be shared with an existing tenant who has a separate rental agreement for the dwelling unit (i.e., renting individual rooms).
6.      A dwelling unit not advertised to the general public.

RELOCATION ASSISTANCE – CITY & STATE
Eugene Code Relocation Assistance

On or after August 25, 2023, you must provide a minimum of 90 days’ written notice to terminate tenancy for no cause or for lease non-renewal given in the first year. The termination notice must include information about the amount of relocation assistance for which the Resident is eligible with a description of their rights and obligations.

Unless you are exempt, you must pay the Resident two month’s periodic rent if you terminate the tenancy for no cause in the first year, or for a Qualifying Landlord Reason at any time, and the relocation assistance must be paid within 45 days of delivery of the termination notice. If the Resident remains in the dwelling unit after the date of termination without the Housing Provider’s permission, the Resident must immediately repay the relocation assistance.

A Resident who receives relocation assistance for a no-cause of Qualifying Landlord Reason termination of tenancy must, within 45 days of the date of receipt of the assistance, provide you with written notice of termination of the rental agreement and vacate the unit by or before that termination date or repay the relocation assistance.

The City of Eugene is creating the forms and the City Manager is developing rules to implement these new requirements. We are asking for and hope to get clarity on whether the information needs to be in the body of the notice itself or can be attached to the notice of termination.

State Relocation Assistance
You may also be required to pay a relocation assistance under state law if you hold an ownership interest in more than four residential rental units in Oregon and are serving notice of termination for a Qualifying Landlord Reason. If you are required to pay the state assistance of one month’s rent, that assistance must be provided with the notice, but you can reduce the amount you pay required by the City Code by the amount of the state assistance you paid with your notice. This results in two separate payments delivered at different times, with a right to recover only one of these if the Resident does not vacate.

Lease Renewal in the First Year
In a fixed-term lease with a specified ending date that falls within the first year of occupancy, unless exempt as outlined below, you must follow this process: 

1.     At least 90 days prior to the specified ending date of the fixed term, provide the Resident with a written statement informing them of their right to receive relocation assistance and the means for eligibility.
2.     For the Resident to be eligible to receive relocation assistance, the Resident must, at least 60 days prior to the specified ending date of the fixed term provide you with written notice of their desire to renew the fixed term agreement.
3.     Within 30 days of the written notice from the Resident, you must either:

(1) Provide the Resident with written notice that you are declining to renew the lease and pay the Resident two month’s rent as a relocation assistance or;
(2) Provide the Resident with written notice that you agree to renew the lease. There is no specified term stated for length of lease renewal, but the lease renewal terms may not be a “substantial change” from the existing terms.
a. Substantial change means:  A change of terms from those included in a prior rental agreement between a Housing Provider and Resident that substantially disadvantages the Resident, and the Housing Provider does not provide for a commensurate decrease in rent. Examples of substantial changes to a rental agreement include but are not limited to: Resident responsibility for payment of utilities previously included in the monthly rent; Resident responsibility for payment for a parking spot previously included in the monthly rent; Housing Provider no longer allowing pets to occupy the dwelling unit; reduction of space available for Resident use; reduction of amenities available for Resident use; and removal of furnishings from furnished units.

4.     A Resident who has received relocation assistance and either agrees to the Housing Provider’s conditions of renewal or remains in the dwelling unit after you decline to renew, must immediately repay the relocation assistance.

Rent increases
Unless a Housing Provider is exempt as outlined below, you are subject to payment of relocation assistance if you increase the Resident’s rent by the maximum allowable percentage in a specific year.  When raising rent, the 90-day notice must state the amount of the new rent, the dollar amount by which 

the rent will increase, the percentage of the increase, and the date the increase will be effective. The notice must also specify the amount of relocation assistance for which the Resident is eligible and include a description of the Resident’s rights and obligations.

A Resident who receives notice of rent increase for the maximum allowable amount may, within 30 days of the date of the notice, request in writing for the Housing Provider to pay relocation assistance. If the Resident fails to request it within that timeframe, they are not eligible for assistance, may not request payment, and the rent increase amount will stand. If the Resident requests relocation assistance within the 30-day period, the Housing Provider must pay the Resident the required assistance of two-month’s rent at least 45 days prior to the date of the rent increase.

A Resident who receives relocation assistance for a maximum rent increase, must within 45 days of the date of receipt of the assistance, either: (1) provide you with written notice of termination of the rental agreement and vacate the unit; or (2) repay the relocation assistance and remain in the unit, subject to the increased rent.

Take Away: If you don’t intend to raise rent to the maximum, you don’t have to provide the information on relocation assistance. To avoid that payment, stay below the rent cap.

Please note that while under state law, properties built within the past 15 years are exempt from the rent cap, though properties subject to the Eugene Code are not exempt for that reason.

Relocation assistance exemptions

1.     Week-to-week tenancies.
2.     Occupancy in the same dwelling unit where the Housing Provider has occupied the unit as their primary residence for at least six months prior to service of notice to terminate.
3.     Residents that occupy one unit of middle housing where the Housing Provider’s primary residence is another unit of middle housing on the same lot or parcel and the Housing Provider has occupied the unit as their primary residence for at least six months prior to service of notice to terminate.
4.     Residents that occupy an accessory dwelling unit (ADU) and the Housing Provider’s primary residence is on the same lot or parcel and the Housing Provider has occupied the unit as their primary residence for at least six months prior to service of notice to terminate.
5.     Housing Providers who temporarily rent out their primary residence during their absence of not more than three (3) years and the Housing Provider returns and reoccupies the unit as their primary residence within that time.
6.     Housing Providers who temporarily rent out their primary residence due to deployment in the armed forces and the Housing Provider returns and reoccupies the unit as their primary residence.
7.     Units of affordable housing.
8.     A dwelling unit that is subject to and in compliance with the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.
9.     A dwelling unit rendered immediately uninhabitable not due to the action or inaction of a Housing Provider or Resident.
10.     A dwelling unit rented for less than six (6) months where the Housing Provider will be demolishing the unit and has provided the Resident with verification of submission of a demolition permit prior to the execution of the rental agreement.
11.     A unit rented under a fixed-term lease where the Housing Provider’s intent is to sell or permanently convert the dwelling unit to a use other than as a dwelling unit and is a term of the executed rental agreement.
12.     And one final exemption for units where the tenancy was initiated prior to August 25, 2023, but only for specific types of tenancies. Check out Section 7 of the ordinance to see if you qualify.

Qualification exemption process

1.     For exemptions claimed under 1, 5, 6, 7, 10 & 11 above, no later than the time of execution of the rental agreement, you must provide each Resident who is a party to the rental agreement with written notice that the tenancy is exempt from relocation assistance.
2.     For exemptions claimed under 2, 3 & 4 above, where the Housing Provider is living in the dwelling unit or on the same lot or parcel of land at the time of execution of the rental agreement, no later than the time of execution of the rental agreement you must provide each Resident with written notice that the tenancy is exempt from relocation assistance.
3.     For exemptions claimed under 2, 3 & 4, if you move into the dwelling unit or onto the lot or parcel during the term of the rental agreement, within 30 days of occupancy, you must provide each Resident with written notice that the tenancy will be exempt from relocation assistance once you have occupied the unit as your principal residence for at least six months. The notice requirement applies to you if you move into the unit or onto the lot or parcel on or after September 1, 2023.
4.     For exemption 12, under Section 7 of the ordinance where the rental agreement was executed prior to August 25, 2023, under very limited types of tenancies, you must provide the written notification to the Resident within 30 days of August 25^th.
5.     Except for affordable housing providers, who are not required to file exemptions, within 30 days of the date you provide the Resident with the notice of exemption you must submit to the City a notice of relocation assistance exemption.

Relocation Assistance Reporting
Unless you are exempt from payment of relocation assistance, you must report your relocation assistance payment to the City within 60 days of paying the Resident. The City is currently working on a form for this.

Termination of Tenancy Reporting to the City
You must report all termination notices to the City that result in a termination of tenancy within 30 days of the notice, except for week-to-week tenancies. So, I think that means any notice from you to them where the Resident vacates the unit in response to the notice or by legal eviction, except when you terminate week-to-week tenancies. Your report to the City must include a copy of the termination notice served. The City has created an online form. If you are unable to access the form through the ERHC website, Housing Navigator Amy Cameron said to come in to the office during business hours and staff can assist. The code office is located at 99 W. 10^th Avenue, Eugene, OR  97401 - 541-682-5383.

A Resident who gives notice to vacate and moves out or otherwise abandons the unit when the Housing Provider has not served a termination notice is not a reportable event.

The Code has also been expanded to include the changes listed above in the processing complaints and created a painful financial penalty for Housing Providers who fail to comply.

Penalties
A Housing Provider that violates the relocation assistance provisions for rent increases and terminations is liable to an individual eligible for relocation assistance in an amount equal to three months’ rent as well as actual damages, relocation assistance, and reasonable attorney assistance and costs. That means that any Resident (not just household of residents as a group) claiming to be aggrieved by a Housing Provider’s violation has an individual cause for action in any court of competent jurisdiction for damages and any other remedies as may be appropriate under law.

Take Away: There’s a lot of steps to do just right and big-time monetary penalties if you don’t. Get professional advice so you don’t stumble…

Forms
The City is preparing to launch the following forms:

1.     Tenant notice of rights and obligations for relocation assistance.
2.     Landlord relocation assistance exemption reporting to the City.
3.     Housing Provider termination/eviction reporting to the City.
4.     Housing Provider relocation assistance payment reporting to the City.

We are evaluating our forms to see what changes we may need to make and are working on a Landlord Exemption Notification form and a modification of form O3, Notice of Lease Renewal to provide the 90-day notice in a first-year lease with a specified ending date that falls within the year. Call the Helpline or an attorney for guidance in the meantime.

The good news
None of these restrictions apply to for-cause notices.

I’ve been saying for years, we’re all going to have to get good at holding residents accountable for their misbehavior because the easy route of no-cause notices will likely continue to become more restrictive. That means no more lazy-landlording. You must inspect; you must act on breach of contract; you must avoid waiver; you must learn how to prepare and serve legal notices; and you must stop renting to people because you feel sorry for them or are trying to be nice. Remember, No good deed goes unpunished. This is a business, tighten up your standards people and remember: even with all the increasing regulatory load we’re experiencing, if you have a good property and good people in that property, rental property ownership is still one of the best ways to build financial stability and generational wealth over time. So, stop whining and start learning!

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 8/2023