OREGON SB611 Trying To Force Landlords To Pay 3X Rent For Relocation & Cap Rent!

[Dan Gandee]

PREFACE: First and foremost, I just wanted to say I totally understand the discussion point of investing in red states vs. blue states. As someone that grew up in Ohio helping my grandfather labor on his small rental portfolio and make nearly no money, I can see the pros and cons of all sides of the equation. Now that I live out here in Oregon with a substantial portfolio of properties (many different assets and many different price points) I'd like to gather some feedback from other investors and property managers on this topic. 

DISCUSSION POINT: Supply and demand will change with a mass exodus of investors, raising prices and raising rents (all good for someone that is patient and has market rents). 

If you are not familiar with SB611 then please take a quick Google Search of the law or click this link: SB611 Proposed Law

This law is a state-wide initiative that is very similar to the "PHASE II" rental protections the City of Eugene is trying to pass as we speak. 

THE PROPOSED LAW:

1. Penalty for landlord "no-cause" evictions to be 3X the monthly rental rate of the tenant as a relocation fee

2. Rental caps will be reduced from 7% + CPI to 3% + CPI 

3. The 15 year new construction exemption will be reduced to 3 years (cap on rents). 

4. A "state of emergency" will be put into effect regarding affordable housing (WTF does that mean?) 

I'm making this post because I've learned over the years that where "there are problems, there are opportunities." 

I'm looking to acquire more properties on creative financing and I believe this may just be the perfect storm for more discussions with tired landlords who've managed their properties poorly and have under market rents. 

Repositioning is my asset management skillset and I believe we can create massive success in a changing climate, while the near sighted investors push the ejector seat. 

What are your thoughts?