All Forum Posts by: Cody Paratore

Robyn,

I live in Keizer and am in the same boat. Inherited tenants under market rent and on M2M leases. County does not matter unless you live in Portland. 

Here is how it would look for you. You get a new lease that reflects your terms and ownership. But the person still technically has lived at the property and is not a new tenant. So you may only raise the rent the 9.9% Max. But you also need to check with the previous owner and see when they last raised rent. Because you can only raise it once in a 12 month time frame. So, if the pervious owner raised rent in January of this year, you would have to wait until January of 2022 to raise rent. You also still need to give them a 90 Days notice. 

The only way to get higher than a 9.9% increase is when the tenants leave and the unit goes vacant. They rent control does not apply and there is not limit to how much you can increase. 

If you have more questions feel free to PM me and we can talk. Would love to network with other investors in the Valley and congrats on your new home!

Here is where you can find the Oregon Law about rent increases. https://www.oregonlaws.org/ors...

Are you starting a new lease with this incoming roommate? If it is simply someone moving in and you will be renting to a whole new tenant than rent can be whatever you want. Otherwise if your current tenant is just getting a roommate then no you can not increase rent.

Think of it in terms of leases and not tenants. The lease can not be changed but tenants can move in and out. So if a new lease moves in, you can charge him whatever rent you want. But if the roommate will be moving in under the current lease you have to honor that rent until October. 

I am in the Keizer area and looked all over Salem/Keizer when looking for my house hack. 410k for a 6 plex sounds very cheap. Just paid 437k for my duplex. A four plex just sold the other day in South Salem (good area) for 615K.

I would be interested to know where exactly this property is because there are certain parts of Salem I would 100% steer clear of. 

I would agree with Chris that in Salem, if its a decent area you should be able to increase the value to 100-120K per door. But like I said there are parts that people are leaving and I would never buy in. Where is the property located?

I belive you need to give them either 30 or 60 day notice to change the lease. Any reason you want to switch an inherited tenant to a year long lease right away? That is a big commitment to someone you did not screen and select yourself. I was just in the same situation and kept the tenant Month to Month but changed the name of the landlord. They were happy to sign it before the needed time frame (consent on both sides can be sooner) since I didn't change anything other than ownership. Month to Month gives you far more flexibility if the tenant turns out to be a bad apple.  

Now your second part. You can only raise rent once over the course of 12 months ( not a calendar year). So you would need to find out when the previous landlord raised rent last. Then you need to give them a 90 notice before raising rent. Last, it can only be raised 7% plus the consumer index (which changes every year) so you need to look that up. 

I'm not a landlord-tenant attorney so take all of this with a grain of salt and do your own research. If you spend some time looking around you can find all of this info on the state website. 

@Edgar Estrada

Hey Edgar! I am also in the Salem area. My wife and I actually just bought a duplex in Keizer. We skipped the SFH and and have only one regret...wish we could have found a 4 or 3 unit. Otherwise it is perfect for getting our feet wet as a landlord. It has only been 3 weeks since we closed, but the tenants have been perfect and we are extremely happy with the duplex. We spent about 6 months looking for a 3 or 4 unit. I was really hoping for a 4plex due to the better returns and in those 6 months, only one popped up on the market. I would suggest keeping your eyes open for a 4plex but also looking at the duplex market. You don't want to pass up a good opportunity just because it only has two units and not four.

Do you have an agent yet? If not, I would highly recommend @Cory Carlson. He helped us find our duplex and he specializes in helping clients find house hacks and investment properties. Can't say enough good things about him.

If you have another other questions about my experiences or the Salem market, don't hesitate to reach out. 

@Cameron Hunt It will be a house hack. It is the first house my wife and I have bought. Plan is to live there for a year or so and then begin looking for the next one while keeping it for a rental.

Welcome to BP and the Salem area. I think off market is the way to go and will definitely go that direction on the next deal. My wife and I are currently under contract on our first house (duplex) in Keizer. Took us 5 months to finally get an offer to stick. Plan is to close in early November! 

I would stick to the lease or as mentioned above, allow a Ring Doorbell. 

Otherwise you could require that they use some sort of system like SimplySafe which, from my understanding, uses command strip type attachments for mounting and is a wireless system. This way they do not damage the property and run wires all over the place.

If you go that route, I would highly recommend getting it in writing in case they don't follow through and use a separate system that damages your home.

Planning to purchase my first MF in Salem this year. Currently waiting to hear back about an offer on a duplex. Fingers crossed!

@Levi Kuhlman

Oops I apologize I got your post mixed up with someone else who is a new member! So sorry my post seems like I didn’t read your initial post haha!

I’ll definitely shoot you a message. We currently have a broker but we would love to hear if you have anything coming on the market that might fit what we are looking for!