Rent Control Oregon - Are you buying?

[Danna Gramme]

How do you all feel about the rent control situation in Oregon overall? We see great buys there but have been leary of stepping over the Oregon / Washinton board (We are in Vancouver, WA). We were even interested in buying in my old back yard (central valley of CA) but with rent control - it has got us holding a lot of cash in the bank. We don't know how 'rent control' laws are going to affect WA, OR and CA. We think of NY, slumlords, cap on rent increases, etc when We think rent control. Thanks for your input in advance!

[Mike Nuss]

@Danna Gramme a couple thoughts

1) Yes, I'm currently buying, but pro formas have changed significantly do to the inability to bring rents to market immediately for value add properties (except for certain circumstances the law allows). Still finding good deals though. 

2) We don't know how 'rent control' laws are going to affect WA, OR and CA. We think of NY, slumlords, cap on rent increases, etc when We think rent control. Thanks for your input in advance!......This statement summarizes where most landlords are. Rent Control is location specific. I suggest reading the actual ordinance so you can better educate yourself rather than assume it'll be the same as NY and others (which Oregon's isnt).

3)  I see in greater Portland prices trending down fast....Where do you see that. Costar just published a large report that suggests the statement is wrong. RMLS' last market action report also suggests that statement is wrong. 

The costar report shows a large increase of apartment purchasing in Vancouver, which is expected from rent control and Portland's screening criteria changes. The market is finding it's way right now. Demand is figuring it out, sellers are figuring it out and that's going to lead to more volatility in the short term. As in the stock market, volatility is a great time for educated buyers to do really well. We've been pretty successful purchasing multi family this year and expect that trend to continue, you just have to purchase with specific knowledge of the law and market in order to reduce the risk.