Senate Bill 608 - Oregon

[Glenn Hermans]

Hello all,  I'm in Roseburg Oregon on other business and was looking at neighborhoods etc.  A broker mentioned Senate Bill 608.. it supposed to be a tenant protection bill, but it seems to be problematic to investors/landlords.  Are there any local (Oregon) area experts that have a different opinion.  Here is a link from the Oregon Realtors Assn.  Thanks for any and all input!

https://oregonrealtors.org/sites/default/files/Senate%20Bill%20608%20summary.pdf

[Mike Nuss]

@Glenn Hermans the OAR summary is pretty close to being accurate. Here is where the summary is not fully accurate. 

- exemption on sale to an owner occupant. The verbiage here was tailored for condo conversions. The specific verbiage is unclear for an owner occupant buying a multi family home as it states ":(A) Accepted an offer to purchase the dwelling unit separately from any other dwelling unit from a person who intends in good faith to occupy" So "separately from any other dwelling unit" would exclude owner occs for say like a 2-4 unit purchase and it's unclear for owner occ purchasers of single family. I've been giving broker classes on the topic and tell them to refer to an attorney if they want to advise their client to use this exemption because the language is vague. 

- exemption for removal of a unit from residential use....this also qualifies for demo. So you can terminate tenancy of a residential building, demo that building and build a new residential use. Just wanted to clarify that. 

- fixed term tenancies do not have to roll to month to month. After the first year of occupancy, the tenancy can only be terminated for cause. However; an expiring lease can be extended or renewed as long as the landlord gives adequate notice and completes the necessary paperwork with a tenant. Otherwise it will roll to a month to month, but it doesn't have to roll to a month to month. 

- raising rents between tenancies. There is only one scenario where there will be a rent raise cap between tenancies. That's for a 30 day no cause termination, which can only be given for month to month tenants within their first year of tenancy. So you can for cause terminate tenancy and then bring rents to market for the subsequent tenant. You do not have to have a voluntary tenant move out to avoid a rent raise cap in between tenants. 

As @Jay Hinrichs many investors will just deal with it. Many ma and pa will start hiring property managers even though they didn't in the past. Many investors will just sell and exit the Oregon market. Portland investors are a little different, they're looking at the state bill and saying "phew, I'm glad Portland's leadership didn't get what they want" as Portland leaders want a much more strict policy than what was passed. 

I know this in and out so don't hesitate to ask any more questions. I'll be happy to do my best to provide good insight. 

good luck!