MHCO Columns

Resident Non Payment of Utilities

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In Oregon MHCs, non-payment of utilities is not grounds for a "nonpayment of rent" eviction. Instead, it is treated as a violation of the rental agreement, which allows for a "for-cause" termination. 

 

    Key Legal Rules

    • Utility Charges vs. Rent: Under Oregon Revised Statute (ORS) 90.532, a utility charge is explicitly defined as not being rent or a fee.
    • No Shut-Offs: Landlords are strictly prohibited from shutting off utilities or threatening to do so as a way to force payment or eviction.
    • Billing Transparency: Tenants have the right to request a copy of the original utility bill from the landlord to verify how charges were calculated before paying. 

    The Eviction Process for Non-Payment

    Because utility non-payment is a lease violation, the landlord must follow the "for-cause" process: 

    • 30-Day Notice: The landlord must provide a written 30-day notice of termination.
    • Right to Cure (14 Days): Tenants typically have 14 days from the date of the notice to pay the past-due utility charges to "cure" the violation and stop the eviction.
    • Timing of Notice: For manufactured home parks, a landlord cannot issue this termination notice until at least the 8th day after the utility bill was due.
    • Repeated Violations: If a tenant receives a 30-day notice and cures it, but then fails to pay utilities again within six months, the landlord may issue a 10-day notice with no right to fix the problem. 

    Potential Consequences & Protections

    • Late Fees: Landlords can only charge a late fee for utilities if it is the second violation and a prior warning was given.
    • Utility Disconnection: If utilities are billed directly by a provider (not the landlord) and get disconnected due to non-payment, the landlord may use that disconnection as cause for eviction because most leases require maintaining basic services for habitability.