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As a very active multifamily broker with KW Commercial, I want to update you on some major new landlord-tenant laws that are going to impact your business.
I recently held a discussion with property manager Hyle Bradley, with Real Property Management Solutions, to review Legislative changes coming in 2024.
The big ones are House Bill 2001 and Senate Bill 611 - both will make it tougher for landlords like us to operate profitably.
Let’s start with House Bill 2001. This bill is all about extending timelines and protections for tenants facing eviction due to unpaid rent.
The days of 3-day notices are over. Now we have to provide a 10-13 day notice before starting the eviction process. We also have to include a disclosure about rental aid programs, which I’m sure will be very popular with tenants.
Here’s the real kicker - even after we file the eviction paperwork and pay the fees, the court has to push back the first appearance date by 15 more days. The whole process already takes long enough! But it gets worse - HB 2001 says tenants can pay whatever amount is listed on the eviction notice right up until that first court appearance, and we have to accept it and dismiss the eviction. I hope you can see how this is going to make collecting unpaid rent extremely difficult.
The second whammy for landlords is Senate Bill 611, which further restricts our ability to raise rents with our statewide rent control. Our annual increases are now capped at 7% plus inflation or 10%, whichever is lower.
For those investors with below-market rents, these limits are really going to cut into how quickly you can get our rents back to market level.
I don’t have to tell you guys that these new rules mean a lot more risk and hassle for landlords. Many of my clients who have been in the investing for the last for 15-20 years are trying to get out because it’s just become too difficult to operate in Oregon’s landlord-unfriendly environment.
So what can we do? I highly recommend you evaluate your real estate portfolio and goals, then reach out to experts like Hyle or myself so we can discuss your options. For some investors, now is the time to sell and take advantage of appreciation. Others may need to revise their budgeting or improve operations to maintain cash flow with rent control in effect. But sticking your head in the sand is not a good strategy - we need to take action to adapt to the changing legislative landscape. Let me know if you need strategic guidance for your rentals - I’m here to help!
