MHCO Columns

Phil Querin Q&A: Recovery of Cost and Fees When Tenant Tenders Rent After FED Filed

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Phil Querin

Question:  I have an issue regarding late payment of rent where I own both the home and the space.  The rent is constantly late. After I file for eviction the tenant either pays before the court hearing or at the hearing.  I am then stuck with the filing fees and service fees.  What are my options?

 

Answer:   Let’s start from when you filed you eviction in court. The First Appearance is the time noted in the Summons for both parties to appear in person (or via Zoom). If you and tenant both appear, the judge will likely encourage the parties to reach an agreement and report it back to the courtroom. This normally includes either the tenant remaining in the premises by payment of some, or all of the rent due, or working out a date to vacate.

 

The best approach is to reach a “stipulation” with the tenant at the First Appearance to pay all unpaid rents by a certain date or according to a certain schedule – including your costs and fees. If the judge signs the stipulated order, and the tenant complies, the case will ultimately be dismissed at the end of the stipulated period. If the tenant does not comply with the stipulation, you may file a Declaration of Non-Compliance along with a Notice of Restitution and seek a Judgment of Restitution removing the tenant from the property. It is a fast-track process.

 

However, the law requires the Court to dismiss the FED if the tenant tenders rental assistance or payment (or causes rental assistance or payment to be tendered by a 3rd party) that covers the nonpayment amount owed under your 10-day termination notice.[1] In other words, after the tenant has tendered the rent before the first appearance, you have to accept it - if you wait to go to court after the tender, the same result will occur.

 

In those cases in which you did not recover the costs and fees by stipulation during the First Appearance you can file a 30-day notice of termination for payment of the funds. Unfortunately, if it isn’t paid after the 30-day period, you will have to file another eviction in court, and the process starts all over again.

 

Alternatively, you could forget going back to court, and simply file in Small Claims Court (or Justice Court in some jurisdictions) for the fees and costs you did not recover after filing the FED in court.

No lawyers are allowed – it’s just you and the tenant. The judge’s decision is not appealable. The

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problem with that approach is if the judge doesn’t give you the full amount of costs and fees, you’re stuck. You can’t appeal. This should not occur, but it’s impossible to predict; not being subject to appeal, the FED judge can exercise a lot of discretion.

 

Since the resident does not own the home, he/she is the same as any other tenant. This means that you do nothave the ability to use ORS 90.630(10) for a three strikes notice which is reserved only for MHP landlords.

 

[1] Note that the definition of ‘nonpayment’ now includes late charges, utility or service charges, or any other charge or fee as described in the rental agreement or ORS 90.140.