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Phil Querin Q&A: When to use 'Writ of Execution'

Phil Querin

A: The writ of execution is necessary only in those cases in which the tenant refuses to vacate after the court has awarded possession of the space back to the landlord (also known as a "judgment of restitution"). If the tenant has voluntarily left following issuance of the judgment of restitution, the landlord may declare an abandonment after 7 days following the judgment. If a writ of execution has been issued, landlords do not have the right to obtain recovery of storage charges upon timely removal of the home by the tenant. Accordingly, the writ should only be served by the sheriff in those cases in which the tenant has refused to vacate following issuance of a judgment of restitution.

Phil Querin Q&A: Resident Leaves State - Appropriate to Mail 72 Hour Notice?

Phil Querin

Question. A resident recently moved out of state.  The landlord wants to mail a non-payment of rent notice, and would like proof that the notice was received by the resident.  Can the landlord mail the notice as a "Certificate of Mailing"?

 

 

Answer:  If the tenant has left the home, this does not mean that the landlord’s non-payment of rent notices must follow the tenant around the country in order to be effective.  Rather, in cases where the tenant apparently abandons the home (or at least is ignoring his/her space rent responsibilities while gone), the landlord should send the 72-hour notice to the tenant at the tenant’s space.  If the tenant has another address known to the landlord, he an send a “courtesy copy” so marked, with an advisory that the original was sent to the space.  Upon expiration of the 72 hours without payment, the landlord may file for eviction. If the tenant does not show up at the first appearance, the landlord may obtain a judgment of restitution and recover back possession of the space.  Then the landlord may send out a 45-day abandonment letter.  A Certificate of Mailing (this is not“certified mail”) is always useful when sending notices, and certainly appropriate here. 

Phil Querin Q&A: Resident Requests Ramp to House (Reasonable Accommodation)

Phil Querin

Question.  I have a tenant requesting a reasonable accommodation for a ramp. On the MHCO From 15 (Reasonable Accommodation Request), is says the tenant is responsible for the costs and removal for a modification unless required by law. Is it required by the law to install a ramp? This would mean the Park would pay for it, or is it not a law and a tenant would have to pay the costs to get one installed? We own the unit and space. It is a mobile home rental.

 

Answer659A.145 (Discrimination against individual with disability in real property transactions prohibited) prohibits the following;

 

Refusing to permit, at the expense of the individual with a disability, reasonable modifications of existing premises occupied or to be occupied by the individual if the modifications may be necessary to afford the individual full enjoyment of the premises. However, in the case of a rental, the landlord may, when it is reasonable to do so, condition permission for a reasonable modification on the renter agreeing to restore the interior of the premises to the condition that existed before the modification, reasonable wear and tear excepted.  (Emphasis added.)

 

See, also 42 U.S.C. § 3604(f)(3)(A). This is a relatively minor modification to the exterior of the home. You do not have to pay for the ramp or modification. You will want to require the tenant to agree in writing that when they vacate, they pay the cost to remove the ramp (assuming the new tenant will not need it).

 

As for what modifications would be “required by law” that landlord must pay, I would need specific facts. Assuming that the existing entrance and steps are code-compliant, the placement of the ramp would be at the tenant’s cost. If they were not code compliant, and the tenant wanted the ramp because it was safer and more accessible, I would say the law might place the cost of that modification on you.

Rent to Own and SAFE Act Implications

Question: We just acquired a manufactured home in our community. I would rather sell it to a new tenant, but would consider renting it out or doing a rent-to-own. If I pursue rent-to-own option, will I be subject to the new SAFE Act?

Answer: Remember that the SAFE Act only applies if the seller/landlord is providing financing, and in doing so, is going to make a credit decision regarding the buyer's financial capacity.

In short, so long as you don't extend credit (which includes carrying back a security agreement or other form of installment payment contract) you're not subject to the Act. If you do a credit check for your prospective tenant, this would not be covered by SAFE. Make sure that your lease/option or rent-to-own paperwork is reviewed by legal counsel - and under no circumstances do you want to offer an extension of credit in the transactional documents. Under SAFE, if you extend credit for the purchase of the home you would have to be a Mortgage Loan Originator as described in the Act. I did an extensive summary (FAQs) on the SAFE Act, and you can link directly to it on the MHCO website.

However, on another note, you might want to consider what you are getting into as a landlord of mobile homes. First, you will be responsible for providing certain statutory essential services" which are far more extensive than if you were merely a landlord of the space. Additionally

What You Need to Know About Oregon Mandatory Mediation and Dispute Resolution in Manufactured and Marina Communities Resource Center

MHCO

 

State legislation requires manufactured home park and floating home landlords to amend Rental Agreements to provide for a Mandatory Mediation Policy (Oregon Revised Statute 90.767). The policy must include an explanation of the process and format for mediation and provide information on mediation services available. Statute currently calls for establishment of an “Informal Dispute Resolution”, commonly referred to as voluntary mediation. Both aspects of mediation are viable; however, mandatory mediation compels parties to meet at least once and suspends any court action until completion of the mandatory mediation.

 

1. How to Initiate Mediation or Informal Dispute Resolution

Mediation may be initiated by a Landlord, a Tenant or Group of Tenants. Either party may contact the mediation services available through: (a) park/marina manager, (b) Local Community Dispute Resolution Center (CDRC), or (c) Manufactured and Marina Communities Resource Center (MMCRC) hotline: 1-800- 453-5511 (Toll Free in Oregon) or email:hcs.mmcrc@oregon.gov or the MMCRC Website.

2. Disputes Eligible for Mandatory Mediation

Those between the landlord and one or more tenants, initiated by any party.

Those between more than one tenant as initiated by the landlord.

Information dispute resolution, disputes between two tenants, initiated by either party. Consistent with statute, upon intake the CDRC will determine the eligibility of an issue for mediation (reference Section 6 below).

3. Good Faith Efforts

Participants must make good faith effort to: (a) schedule a mediation within 30 days after initiation: (b) attend and participate; and (c) cooperate with reasonable requests of the mediator.

4. Mandatory mediation only:

 If a party refuses to participate in good faith in mandatory mediation with another party, or uses mediation to harass another party, the other party:

(a) has a defense to a claim related to the subject of the dispute for which mediation was sought; and

(b) is entitled to damages of one month’s rent against the party.

Effect of Filing for Mandatory Mediation

Between the commencement and conclusion of the mediation:

If the request for mandatory mediation is made before the landlord files a Forcible Entry5. 6.and Detainer, Oregon Revised Statute 90.767 calls for a “stay” or “toll” (suspension) of

any related court action until conclusion of the mandatory mediation.

A party may not file a court action over the dispute until conclusion of the mandatory mediation; (c) tenant has continuing duty to pay rent; and (d) landlord’s receipt of rent does not constitute a waiver under Oregon Revised Statute 90.412(2).

5. Matters Subject to Mandatory Mediation

Except as provided in Section 6, below, the following disputes are eligible for mediation:

(a) landlord or tenant compliance with the rental agreement or Oregon Revised Statute Chapter 90 (Oregon landlord/tenant statutes); (b) landlord or tenant conduct within the Park/Marina; and (c) rule changes initiated under Oregon Revised Statute 90.610.

Matters Not Subject to Mandatory Mediation

Unless specifically provided for in a mediation policy established under this section, or agreed to by all parties, no party may initiate mediation for:

(a) Facility closures consistent with ORS 90.645 or 90.671.

(b) Facility sales consistent with ORS 90.842 to 90.850.

(c) Rent increases consistent with ORS 90.600.

(d) Rent payments or amounts owed.

(e) Tenant violations alleged in a termination notice given under ORS 90.394, 90.396 or

90.630 (8).

(f) Violations of an alleged unauthorized person in possession in a notice given under ORS

90.403.

(g) Unless initiated by the victim, a dispute involving allegations of domestic violence,

sexual assault or stalking or a dispute between the victim and the alleged perpetrator.

(h) A dispute arising after the termination of the tenancy, including under ORS 90.425,

90.675 or 105.161.

7. Confidentiality

Subject to Oregon Revised Statute 36.220 (confidentiality of mediation communications and agreements), all communications between the parties and mediator are strictly confidential and may not be used in any legal proceedings.

8. Limitations on Mandatory Mediation Process

Participation in mediation does not require any party to: (a) reach an agreement on any or all issues submitted; (b) participate in more than one mediation session; (c) participate foran unreasonable length of time in a mediation session; or (d) waive or forego any legal rights or remedies.

9. Designees for Parties

Any party may designate any other person, including a non-attorney(“Designee”), to represent the interests of that party provided that the Designee has complete written authority to bind that party to any resolution of the dispute reached in mediation. The Designee shall be equally bound by all rules of the mediation, including confidentiality.

10. Resolution/Nonresolution

The mediator shall notify Oregon Housing and Community Services whether a dispute was resolved but may not disclose the contents of any resolution.

This article was created by Oregon Housing and Community Services

Community Management and Positive Community Relations

MHCO

The key is to recognize that a manufactured home community is not just a business enterprise; it is also a small town. The residents expect you to be, from time to time, something of a mayor, judge, law enforcer, mediator and diplomat - as well as bill collector and manager of buildings and grounds.

Simply stated, resident relations is the measure of how well, or poorly, the manager and resident get along in the rental community. Developing and maintaining good, positive relations is an important, on-going management challenge and opportunity. Positive resident relations are one of the most attractive features of well-managed manufactured home communities.

The results of good resident relations are:

1. It makes community living easier and more pleasant for management and residents.

2. It promotes a positive and enjoyable living environment which, in turn, generates community pride.

3. It encourages resident referrals. This is the most economical form of community promotion available.

4. It helps develop a good local reputation for the community in particular and the manufactured housing industry in general.

5. It discourages the need or desire for rent control and/or landlord-tenant legislation.

The right attitude in resident relations is the same as any personal relationship - whether with a friend, spouse, job supervisor, or community manager. In fact, developing positive resident relations is the Golden Rule of successful property management. This means being positive, fair, helpful, and communicative with residents and staff alike. Additionally, in all management matters, "Be firm, but fair - diplomatically" and "Be friendly to all, but friends to none." The community's rules ,regulations and statement of policy can be the keystone to good resident relations. If well designed, the rules and regulations as well as the statement of policy reinforce the community's image; if well written, they diminish chances of misunderstanding; if well understood, they reduce property damage and resident problems."

Positive resident relations is the Golden Rule of successful property management. Adopt that attitude and adopt the measures suggested. Developing good resident relations will come easily. Just remember to communicate accurately, briefly, clearly and concisely in everything you say and write.

Mark Busch: Landlord Update

Mark L. Busch

The 2019 Oregon Legislature made sweeping changes to the state’s landlord-tenant laws. None will have more impact than Senate Bill 608 (SB 608), which went into effect on February 28, 2019. SB 608 made two significant alterations to Oregon law: (1) After the first year of occupancy in a month-to-month or fixed-term tenancy, landlords are severely limited in their ability to evict tenants, and (2) landlords with month-to-month or fixed-term tenancies are now limited by rent control in their ability to increase rent for an existing tenancy. (NOTE: The cities of Portland, Milwaukie, and Bend have additional restrictions on landlords, and different laws apply to manufactured home and floating home tenants.)

The limitation on evictions after the first year of occupancy will likely have the biggest impact on landlords. During the first year of occupancy in a month-to-month tenancy, the landlord can evict a tenant with a written 30-day, “no-cause” notice. In a fixed-term tenancy, the landlord can similarly evict a tenant with a 30-day, no-cause notice at the end of the term IF the term falls within the first year of occupancy. After the first year, the new law essentially means that tenants can live in a rental unit for life unless they fail to pay rent, violate the rental agreement, or the landlord’s plans for the rental unit change substantially.

The main takeaway is that landlords should carefully evaluate tenants during the first year of occupancy to ensure that they would be good long-term tenants. If not, landlords should consider terminating the tenancy for no-cause before the second year of occupancy begins. There are some exceptions to the no-cause eviction rule after the first year, such as when a landlord intends to put the rental unit to a different use (i.e., to undertake substantial repairs, demolish the unit, move in family members, or sell the unit). Even then, the tenant can only be evicted with a 90-day notice and in some cases the landlord must pay the tenant one month’s rent to move out. There are also exceptions for tenants who live in the landlord’s primary residence as a tenant, or on the same property as the landlord (i.e., in a duplex).

Under SB 608, during any tenancy other than week-to-week, a landlord may not increase rent during the first year of the tenancy. After the first year, rent can only be increased with at least 90 days’ written notice. During any 12-month period, rent cannot be increased in an amount greater than 7% plus inflation as measured by the Consumer Price Index for All Urban Consumers, West Region. However, there are exemptions if the first certificate of occupancy for a rental unit was issued less than 15 years from the date of the rent increase, or if the landlord is providing reduced rent as part of a federal, state or local program or subsidy.

While most landlords would be content with 7% rent increases, the real danger is that this limit will be pushed downward by future legislatures. The 7% limit also prohibits landlords from quickly recouping large capital expenditures, such as unforeseen repair costs to their rental units. To guard against this, it seems likely that many landlords will set rents higher for new tenants, and/or regularly raise rents at 7% annually plus the CPI when they may not have done so before SB 608.

Mark L. Busch
Cornell West, Suite 200, 1500 NW Bethany Blvd
Beaverton, OR 97006
(503) 597 - 1309

mark@marklbusch.com

www.marklbusch.com

 

Phil Querin Q&A: Electric Vehicle Charging Stations - Community Responsibility

MHCO

Question: What can you tell me about ORS 94.762 requiring landlords to install the infrastructure for Electric Vehicle charging stations in manufactured housing communities, RV parks and floating home communities?  Is the impact and responsibility of the landlord the same in each of those housing options?


 

Answer:  This law has been around for several years, although it is my first opportunity to review it. This statute does not apply to manufactured housing communities, RV parks or  floating home communities. Rather, it applies to “planned communities.”

 

These are housing communities regulated under ORS 94.565, et seq. Essentially, they are akin to residential subdivisions that have a homeowner’s association form of governance, common areas, and periodic assessments or dues. All the homeowners own their homes and the lots they are sited on. This statute allows homeowners to install charging stations on their own property, subject to certain regulations by the HOA.

 

So, the short answer to your question is that since manufactured housing communities, RV parks and marinas are not planned communities because the residents do not own the underlying land, ORS 94.565 does not apply. However, it is conceivable that a park or marina might install charging stations on its common area for resident usage.

Mark Busch Q&A: Background Checks in RV Parks

Mark L. Busch

Answer: Even though some of your RV tenants are short-termers, I always recommend a complete tenant background check no matter how long the anticipated tenancy. As a businessperson, you have an obligation to yourself to ensure that every RV tenant checks out with a background screening for criminal, credit and eviction history. As a landlord, you have an obligation by law to ensure the peaceful enjoyment of the premises by not allowing "bad seeds" into the park.

Most problems can be avoided by doing your due diligence at the beginning of the tenancy with a proper background screening. The fact that these particular tenants are more transient than usual doesn'tmatter.

In some cases, it is even more important to check on transient tenants. By way of example, one mobile home park client allowed a woman with an RV into the park without any background check. The woman ended up being a "professional tenant" who worked the system and dragged out the eviction process for several months. She later popped up at another mobile home client's park and pulled the same scam.

As for the structure of the rental agreement for transient tenants, the first thing to do is use MHCO Form 80 (Recreational Vehicle Space Rental Agreement). I typically recommend a simple month to month agreement so that you can evict on 30 days' written notice if things don't work out with a particular RV tenant. Weekly tenancies are also allowable, although most RV tenants want assurances of a longer tenancy. Finally, a short fixed term tenancy (i.e., 3 months) is also acceptable so long as you're comfortable with the tenant and have done the required background checks.

Mark L. Busch, P.C.
Attorney at Law
Cornell West, Suite 200
1500 NW Bethany Blvd.
Beaverton, Oregon 97006

Ph: 503-597-1309
Fax: 503-430-7593
Web: www.marklbusch.com
Email: mark@marklbusch.com

Mark Busch: Changing Rules in an RV Park

Mark L. Busch

This article is informational only and is not intended as legal advice.  Always consult with a competent attorney before undertaking any legal action.

The question often arises whether and how RV park landlords can change and update their park rules.  For manufactured home parks, the answer is clear – landlords can issue a rule change notice that allows tenants to vote on the proposed new rules (MHCO Form 60 – Notice of Rule Change).  However, there are no similar procedures in an RV park.

 

Rule changes for RV parks and other non-manufactured home tenancies are governed by

ORS 90.262.  That statute allows landlords to implement rules if the rules: (a) promote the convenience, safety or welfare of the tenants; (b) are reasonably related to the purpose for which they are adopted; (c) apply to all tenants in a fair manner; (d) fairly inform the tenant of what they must or must not do to comply; (e) are not for the purpose of evading the obligations of the landlord; and (f) are given to the tenant in a written notice when the tenant signs the rental agreement, or when the rules are adopted.

If your RV park rules meet these requirements, you may require new tenants to sign the rules when they sign the rental agreement, and they are bound to follow those rules.  One method of changing the park rules is to do it slowly over time as new tenants enter the park and sign the new rules.  This will mean that different tenants have different sets of rules, which could lead to some conflicts (i.e., “why does my neighbor get to have two dogs, and I can only have one?”).  However, there is nothing prohibiting different rules applicable to different sets of tenants.  The explanation to tenants is the truth: “We are in the process of updating our rules as new tenants move into the park.”

It is possible to change your park rules for existing tenants, although problematic.  RV park landlords can adopt new rules, but any rule adopted after the tenant enters into the rental agreement that works a “substantial modification of the bargain” is not valid unless the tenant consents to it in writing (ORS 90.262 (2)).  Minor rule changes might be acceptable (i.e., “quiet hours are now 9:00 p.m. until 8:00 a.m.” or “guests cannot park on roadway, only in guest parking”).  More impactful rule changes would not be enforceable (i.e., “tenants may only park one passenger vehicle on the rental space, not two”).

If you decide to change your rules for existing tenants, try to ensure that any changes you make are not “substantial modifications.”  There is no statutory timeline for changing the rules, but I typically recommend that landlords provide the new rules in writing to each tenant at least

30 days before the new rules take effect (hand-delivered or mailed first-class mail).  It is also a good idea to send an accompanying letter explaining the reasons for the rule changes and asking the tenants to please come to the office to sign the new rules – although few probably will.

Finally, if you do change the rules for existing tenants, realize that they can be challenged later even if a tenant does not initially object to the new rules.  The most common scenario is when you must issue a 30-day, for-cause eviction notice to a tenant violating the new rules, which they can then challenge in court as unenforceable because they “substantially modified” the tenant’s original arrangement with the park.  In that case, you must be prepared to explain to the court why the applicable rule was not a substantial modification.