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Mark Busch Article: Avoiding Tenant Disputes

Mark L. Busch

The most effective solution is getting good tenants in the first place. Screen each and every potential tenant for credit history, criminal convictions, and evictions. Set your application standards and stick to them (i.e., don't fall for any "hard luck" stories). There are certain restrictions on what may be considered in the evaluation process, so consult an attorney on the specifics. (NOTE: If you charge an application fee, you must provide applicants with written notice of your screening criteria, the amount of the screening charge, your application process, and the applicant's right to dispute the accuracy of any reported information.)

After you approve an application, make sure that the tenant signs a written rental agreement, rules, and any other rental documents before taking possession of the rental unit. While it is possible to establish a tenancy without any rental documents, it is always more difficult to handle potential disputes without written documentation. don't agree to any "informal" tenancy arrangements - they typically lead to disputes.

After the tenancy begins, be responsive to any complaints by the tenant concerning the condition of the rental. For example, send a handyman or contractor over to inspect and/or repair any complaints made by the tenant. While there are limits on what constitutes a "habitability" issue affecting the actual livability of the rental, err on the side of making repairs unless the repair issues become unreasonable.

Finally, treat your rental like the business that it is. If rent is due on the 1st of the month, then issue 72-hour nonpayment notices on the 8th of the month when rent is late, as allowed by Oregon law. Address tenancy problems (i.e., unauthorized occupants, pets, maintenance issues, etc.) as soon as you learn of them. While it might not be possible to avoid all tenant disputes, addressing problems as soon as they arise will greatly improve your legal position if you end up in court.

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

mark@marklbusch.com

www.marklbusch.com


Legal Case #2: OK to Request Information About a Disability to Verify Need for Accommodation

MHCO

Nearly half of the cases this year address a landlord’s FHA duty to make reasonable accommodations. In most of these cases, the requested accommodation was purportedly necessary to afford a person with a disability an equal opportunity to use and enjoy a dwelling and public and common use areas. These cases offer insight into how far the duty to accommodate goes, including a key case out of Kentucky that sheds light on a landlord’s right to verify the requestor’s disability and need for the accommodation.

    Situation: A tenant claims she needs an emotional support animal for a mental disability and asks the homeowners association board for an exemption from the community’s no-pet policy. Since the tenant’s disability isn’t readily apparent, the board asks her for verification. She provides a medical note listing her diagnosis. Although the disease is an officially recognized illness, the board wants more information about the disability and how it affects her “major life activities.” When she refuses to provide the information, it moves to evict her.  

    You Make the Call: Did the board’s request for more information about the disability go too far?

    Answer: No

    Ruling: The Kentucky court dismisses the tenant’s failure-to-accommodate lawsuit without a trial. The tenant’s disability wasn’t obvious, and the board had a legitimate right to request additional information about its impact on her ability to engage in “major life activities” in making an accommodations decision [Commonwealth Comm'n on Human Rights v. Fincastle Heights Mut. Ownership Corp., 633 S.W.3d 808, 2021 Ky. App. LEXIS 104, 2021 WL 4484981].

    Takeaway: Although you’re not allowed to ask privacy-invasive questions about a person’s disabilities, HUD guidelines give landlords leeway to gather limited information in response to a reasonable accommodations request to the extent the information is necessary to determine three things:

    1. The person meets the FHA definition of disability—that is, has a physical or mental impairment that substantially limits one or more major life activities;
    2. Exactly what accommodation is being requested; and
    3. Whether there’s a “nexus” or relationship between the disability and the need for the requested accommodation.  

    Common Fair Housing Pit Falls: Not Exempting Assistance Animal from No-Pets Policy

    MHCO
    Fair Housing Pitfall: Not Exempting Assistance Animal from No-Pets Policy

    Failure to make reasonable accommodations for a rental applicant or tenant with a disability is, perennially, the most common type of fair housing complaint, accounting for nearly 60 percent of all cases, according to HUD. Many, if not most of these complaints, involve assistance animals. So, that’s where we’ll start our analysis.

    Spot the Discrimination Mistake

    A landlord threatens to evict a tenant with disabilities for keeping a stray cat in her apartment in violation of the community’s no-pets policy. The tenant says the cat helps her cope with mental anxieties and asks for an exemption. The landlord says no because the cat has no special training or certification in assisting the disabled.

    Pitfall: HUD and the U.S. Department of Justice (DOJ) interpret the federal Fair Housing Act (FHA) duty to make reasonable accommodations as requiring exemptions to no-pet policies necessary to enable individuals with disabilities to keep “assistance animals” that directly assist with a disability-related need. “Assistance animals” include dogs or other common domestic household animals that do work, perform tasks, provide assistance, and/or provide therapeutic emotional support for individuals with disabilities. Significantly, assistance animals need not have any specific certification or training. By contrast, under the Americans with

    Disabilities Act (ADA) duty to accommodate applies onlyto “service animals” trained to do work or perform tasks for the benefit of an individual with a disability.

    Thus, while the refusal of the landlord in our scenario to accommodate the stray cat might have been okay under the ADA, it violated the FHA.

    Example: A Pennsylvania federal court ruled that the DOJ had a legally valid claim against a landlord that took the same position as the landlord in our scenario, and allowed the case to go to trial [United States v. Perry Homes, Inc., 2022 U.S. Dist. LEXIS 87064, 2022 WL 3021040].

    Solution: Keep in mind that neither assistance animals nor service animals count as pets and that, unless the ADA applies, you must accommodate both to the point of undue hardship. You may, however, ask for information about the relationship or connection between the disability and need for the assistance animal to the extent the disability is non-observable and/or the animal provides therapeutic emotional support. In addition, you don’t have to accept an assistance or service animal that would create an unreasonable risk of harm, injury, or damage to property.

    Phil Querin Q&A: Landlord Pass-Throughs of Public Service Charges

    Phil Querin

     

    Question: As a park owner we pass through the sewer and water charges to our residents. Currently, they are on 5-year leases, all expiring at various times. The leases address our right to pass through utilities. However, fire and police fees have been attached to the water/sewer bills we receive from the city. May we pass those additional fees through, and if so, how much notice must we give to the residents?

     

    Answer:  The short answer is Yes. The utilities section of the manufactured housing side of Oregon’s landlord-tenant law is ORS 90.560(4) provides:

     

    • “Public service charge” has the meaning given the term in ORS 90.315 (Utility or service payments).
    • ORS 90.315(1) defines:
      •  “Public services” payments to mean ‘municipal services and the provision of public resources related to the dwelling unit, including street maintenance, transportation improvements, public transit, public safety and parks and open space. (Emphasis added); and
      • “Public service charge” means a charge imposed on a landlord by a utility or service provider, by a utility or service provider on behalf of a local government or directly by a local government. (Note: public service charge” does not include real property taxes, income taxes, business license fees or dwelling inspection fees.)
    • ORS 90.570 provides: “A landlord, upon 60 days’ written notice to a tenant, may unilaterally amend a rental agreement[1]to require a tenant to pay to the landlord, as part of the utility or service charge, a pro rata proportion of any new or increased public service charge billed to the landlord by a utility or service provider or a local government for a public service provided directly or indirectly to the tenant’s dwelling unit or to the facility common area.” (Emphasis added.)
    • ORS 90.568 addresses “pro-rata billing” as follows:
      • “If allowed by a written rental agreement, a landlord using pro rata billing may require a tenant to pay to the landlord a utility or service charge that was billed by a utility or service provider to the landlord for a utility or service provided directly to the tenant’s space or to a common area available to the tenant as part of the tenancy. A landlord may include in pro rata billing a public service charge under ORS 90.570 (Public service charge pro rata apportionment).” (Emphasis added.)
      • A pro rata billing charge for tenants’ spaces must be allocated among them by a method that reasonably apportions the cost among the affected tenants and that is described in the rental agreement.
      • Methods that reasonably apportion the cost among the tenants include, but are not limited to, methods that divide the cost based on:
              • The number of occupied spaces in the facility;
              • The number of tenants or occupants in the dwelling or home compared with the number of tenants or occupants in the facility, if there is a correlation with consumption of the utility or service; or
              • The square footage in each dwelling, home or space compared with the total square footage of occupied dwellings or homes in the facility or the square footage of the facility, if there is a correlation with consumption of the utility or service.
    • A utility or service charge to be assessed to a tenant for a common area must be described in the written rental agreement separately and distinctly from the utility or service charge for the tenant’s space. (Emphasis added.)

     

    Conclusion and Caveats. So, yes, to the above question: Prepare a 60-day written Notice of Unilateral Amendment explaining the public service charge and the pro-rata allocation approach. Keep records of these utility charges for tenants to inspect if they want, and when they increase, make sure tenants are notified as soon as possible.  Just like increases in utility rates, they may be passed along – they don’t require additional advance notice.

     

    Utility pass-throughs can be very complicated for a variety of reasons. First and foremost, the legislation is created by committees of stakeholders including industry representatives for landlords (park and non-park owners), tenants, utility companies, lenders, and other interested parties. The results can be confusing, especially so because Oregon’s landlord-tenant law contains a “soft” bifurcation between non-MHPs and MHPs. I say “soft” because the MHP side, ORS 90.505+ occasionally depends upon and includes provisions from the non-MHP side, i.e., ORS 90.100 – ORS 90.493. These observations are not to diminished the legislative drafters’ skills – they must work with what they have.

     

    Familiarity with MHP utility laws i.e., ORS 90.560 to ORS 90.584 (including various stealth statutes that precede ORS 90.560!) requires time, patience, and care. The above summary responds only to the limited question presented. It does not address the MHP landlord’s responsibility to make sure that all park documents address the current utility rules applicable to their park and are sufficiently explained to incoming tenants. If in doubt, legal counsel should always be consulted. ~ Phil

     

    [1] Note: I recommend that each time a landlord seeks to “unilaterally amend” the rental agreement under Oregon law, a documents entitled “Unilateral Amendment” (or similar caption) be delivered to all affected tenants pursuant to ORS 90.155with the same diligence as if they were issuing a rent increase notice. This is really the only way the 60-day notice requirement can be established.  

    Phil Querin Article: Oregon Rent Cap for October 1, 2024 to September 30, 2025

     

    Introduction. Effective July 6, 2023 Oregon Senate Bill 611 amended Oregon’s landlord-tenant Rent Cap law. Section 5 of the Bill applies to manufactured housing tenancies and essentially mirrors the non-manufactured home tenancy section. SB 611 was substantially similar to its predecessor law capped the maximum rent increase at 10%.  For the period October 1, 2024 through September 30, 2025, the maximum rent increase is capped at 10%.  This is the same as last year for the same period.

     

    The Rent Cap does not apply if the certificate of occupancy of the dwelling is less than 15 years, or the property is on a state/local/federal affordable housing program.

     

    The Calculation. Unless exempted (discussed below), a rent increase for any calendar year may notexceed the lesser of: (a) ten percent (10%) or (b) the sum of seven percent (7.00%) times the Current Rent(7% X Current Rent) plus the percentage change in the consumer price index (“CPI”) times the CurrentRent (the % of CPI Change X Current Rent), hereinafter collectively referred to as the “Rent Cap”).

     

    Publication of Consumer Price Index (“CPI”): This is the annual 12-month average change in theConsumer Price Index for All Urban Consumers, West Region (All Items). It is published by the Bureauof Labor Statistics (“BLS”) at the end of September of each year. Landlords are to use the CPI numbers that are operational on the date when the rent increase notice is sent.

     

    If a rent increase notice is sent out before the September 30, 2024 CPI numbers are out, landlords must use the current (pre-9/30/2024 CPI calculation). The maximum rent increase will always be between 7.00% and 10%.

     

    Caveat:  Landlords in the City of Portland should note that the SB 611 statewide 10% rental cap does not appear to override the City of Portland’s Relocation Assistance Program requirements under  Portland City Code 30.01.085(c). Any rent increase of 10% or above, even if allowed under SB 611, will trigger a requirement that the landlord pay relocation assistance if their affected tenants request it. There are limited exemptions to Portland’s 10% increase rule. Landlords should consult with an attorney to inquire about exemptions before increasing City of Portland rents more than 9.9%.

     

    MHCO Form 49 (90 Day Rent Increase Notice). We amended the form last year, so no new change is required.[1]  The 2023-2024 rent cap will be operational until Sept 30, 2024.[2]  However, the 2024-2025 Rent Cap of 10% is the same as 2023-2024 after SB 611 became effective.

    Form 49 is the 90-day rent increase notice. If landlords wait until the new CPI numbers come out in late September 2024, the earliest the rent increase would go into effect 90 days hence, so essentially January, 2025.

    Example. Assuming I issue a 90-day notice on October 1, 2024 using MHCO Form 49,  the Rent Cap would be 10% because the post-Sept. 30, 2024 CPI number is 3.2%, and 10% is less than 10.2% (7% + 3.2%). The earliest my rent increase would go into effect is December 30 (assuming manual delivery or attached and mail – if regular mail, add at least 3 calendar days).

    Refresher on Oregon Rent Increases.

    Here are points to remember on the entire rent increase issue for park owners:

    1. No later than September 30th of each year, the Oregon Department of Administrative Serviceswill calculate and publish in a press release the maximum annual rent increase percentage for thefollowing calendar year as the lesser of:
    1. Ten percent; or
    2. Seven percent plus the September annual 12-month average change in the Consumer PriceIndex for All Urban Consumers, West Region (All Items), as most recently published bythe Bureau of Labor Statistics of the United States Department of Labor.

     

    1. If a tenancy is a week-to-week tenancy, the landlord may not increase the rent withoutgiving the tenant written notice at least seven days prior to the effective date of the rent increase.

     

    1. During any tenancy other than week-to-week, the landlord may not increase the rent:
      1. Without giving the tenant written notice at least 90 days prior to the effective date of therent increase.
      2. More than once in any 12-month period.
      3. By a percentage greater than the Cap.
    1. The rent increase notice must specify:
      1. The amount of the rent increase;
      2. The amount of the new rent;
      3. Facts supporting the exemption, and
      4. The date on which the increase becomes effective.

     

    1. A landlord terminating a tenancy with a 30-day notice without cause as authorized by ORS 90.427 (3) or (4) during the first year of a tenancy may not charge rent for the next tenancyin an amount greater than the maximum amount the landlord could have charged the terminated tenancy under this section.

     

    1. A landlord is not subject to the above rent cap rules if:
      1. The first certificate of occupancy for the dwelling unit was issued less than 15 yearsfrom the date of the notice of the rent increase; or
      2. The dwelling unit is regulated or certified as affordable housing by a federal, state orlocal government and the change in rent:
      3. Does not increase the tenant’s portion of the rent; or
      4. The increase is required by program eligibility requirements or by a change in the tenant’sincome.

     

    1. A landlord that increases rent in violation of is liable to the tenant in an amount equal tothree months’ rent plus actual damages suffered by the tenant.

     

    1. Tenant Committees. Tenants who reside in a manufactured community may elect one committee of seven or fewer members in a facility-wide election to represent the tenants. One tenant of record for each rented space may vote in the election. Upon written request from thetenants’ committee, the landlord or a representative of the landlord shall meet with the committeewithin 10 to 30 days of the request to discuss the tenants’ non-rent concerns regarding the facility.Unless the parties agree otherwise, upon a request from the tenants’ committee, a landlord orrepresentative of the landlord shall meet with the tenants’ committee at least once, but not morethan twice, each calendar year. The meeting shall be held on the premises if the facility has suitable meeting space for that purpose, or at a location reasonably convenient to the tenants. After themeeting, the tenants’ committee shall send a written summary of the issues and concerns addressedat the meeting to the landlord. The landlord or the landlord’s representative shall make a good faith response in writing to the committee’s summary within 60 days. The tenants’ committee may be entitled to informal dispute resolution under ORS 90.769 if the landlord or landlord’s representative fails to meet with the tenants’ committee or fails to respond in a good faith to the written summary from the committee

     

    [1] Note: Form 49 does not contain a place to insert the facts  supporting the  exemption if the certificate of occupancy is more than 15 years, or the property is on a state/local/federal affordable housing program. Neither does it require landlords to do the calculations under SB 611. It just contains a place to insert the new rent amount.

     

    [2] Note: Form 49 (and the ORLTA) specify a 90-day minimum notice, not a maximum. You can give as much additional notice as you want. You can issue a notice now that increases rent on Jan 1, or you can wait until the new CPI numbers come out and issue a notice 90-day notice for January 2025. Just don’t forget maximum increase is 10% unless subject to an exemption.

     

     

     

    Phil Querin Q&A: Partial Rent Payments

    Phil Querin

    Question: What are the rules that apply if the landlord agrees to accept rent in an amount less than required under the Rental Agreement?

     

    Answer: This was covered in a December 2016 MHCO Article. The major change in the law since then was due to the elimination of 72-hour notices of nonpayment of rent. Now a 10-day notice must be issued. (MHCO does not have a form for 144-hour notices, but it too has been eliminated. It has been replaced by a 13-day notice.)  For partial payments, MHCO members do have access to "MHCO Form 12: Receipt and Agreement for Partial Payment of Rent" available on-line at MHCO.ORG.

     

    Withour a legal agreement to make specific and timely installment payments, tenants are required to tender to the landlord the full amount of rent owed under the rental or lease agreement no later than the date provided. Without a proper written agreement, the landlord may refuse to accept the tenant’s tender of rent that is for less than the full amount of rent due.[1]

     

    If landlord is willing to accept partial payments, doing so must strictly follow ORS 90.417. If so, the acceptance of a partial payment will not constitute a waiver under ORS 90.412 (Waiver of termination of tenancy) or the landlord’s right to terminate the tenancy for nonpayment of the balance of the rent owed. Notwithstanding any acceptance of a partial payment of rent, the tenant continues to owe the landlord the unpaid balance of the rent.

     

    However, the agreement must be in writing. It must specify the amount and date of the required payments. If the tenant fails to pay the balance due as agreed, landlord may issue a 10-day notice of termination under ORS 90.394 (Termination of tenancy for failure to pay rent). The written agreement should provide that the landlord may terminate the rental agreement and take possession under the eviction statutes (ORS 105.105  to 105.168) without serving a new 10-day notice under ORS 90.394 if the tenant fails to pay the balance of the rent by the agreed-upon time.

     

    However, there are two important rules against giving the landlord rights under the written agreement that are more favorable than already permitted under the law. Specifically:

    • It cannot permit the landlord to issue a termination under ORS 90.394 any sooner than would have been permitted had no rent been accepted; and
    • The notice of termination must permit the tenant to cure it by paying the balance within the time period already allowed under ORS 90.394  (or by any date to which the parties agree, whichever is later.

     

    Note that if the landlord already accepted a partial payment of rent after giving a nonpayment of rent termination notice under ORS 90.394, and then entered into a written agreement for installment payments, doing so will not constitute a waiver.

     

    As always, before entering into a written agreement, landlords should consult with their legal counsel should they have any ques

     

    [1]  Similarly, the landlord is not legally required to accept the tender of a late payment even if it is for the correct amount. However, if the rules or rental agreement provide for a late payment fee, I do not believe the landlord should refuse a late payment tender within the late-fee period. Can the landlord insist on payment of the fee with the tender of the late payment? My concern about doing so is the argument that the “fee” is not “rent.” I would not recommend refusing to accept any late payment unless there was a collateral issue involved, such as waiver – in which legal counsel should be consulted. If rent is tendered after issuance of the 10-day notice but before an eviction is filed, I would still advise my client to accept it. My belief is that once the court learns that rent has been tendered, albeit late, the judge would not likely grant an eviction. My belief is that the “3-strikes” rule under ORS 90.630(10) should suffice for habitual late payers. In all other case, granting some latitude (with collection of a late fee under the rental agreement of rules) should suffice in most cases. Some attorneys may disagree. Legal counsel should always be consulted if there are any questions.

    Newly Emerging Protected Classes: Undocumented Immigrants

    MHCO

     

    Legal Risk: People who are in this country illegally can’t sue for discrimination under the FHA if that’s the sole reason they experience discrimination. Explanation: In January 2003, HUD issued a memo clarifying that the FHA “does not prohibit discrimination based solely on a person’s citizenship status”; nor, the memo adds, does the law bar discrimination based on “immigration status or resident alien” status. However, undocumented aliens and non-U.S. citizens who get excluded may have valid grounds to sue for other forms of discrimination, including religion, race, and especially national origin. Rule: FHA protections extend to every person in the U.S., regardless of their immigration or citizenship status. Stated differently, a person doesn’t have to be a U.S. citizen to sue for discrimination.

    Solution: There are five steps you can take to minimize discrimination risks when dealing with undocumented aliens: 

    1. Don’t make U.S. citizenship or immigration status a qualifying criterion for renting unless you have a legitimate, nondiscriminatory, and documented business justification for doing so—for example, because state or municipal law requires it;
    2. Be consistent in applying whatever screening policy you do adopt;
    3. Ask for the right form of verification of citizenship and/or immigration status (discussed below);
    4. Apply your normal screening standards to immigrants; and
    5. Don’t use an applicant or tenant’s immigration status as a bargaining chip.

    How to Verify Immigration/Citizenship Status. Acceptable proof depends on whether you’re seeking to verify an applicant’s status as a citizen, immigrant, or nonimmigrant:

    • Citizenship: Acceptable proof of U.S. citizenship includes a valid current U.S. passport, birth certificate, or certificate of naturalization;
    • Legal immigrant: Proof of legal immigrant status, i.e., noncitizens who have the right to permanently remain in the U.S., include a Permanent Resident Card (a.k.a., “Green Card”) and an official Social Security number;
    • Legal nonimmigrants: Legal nonimmigrants are persons allowed to be in the U.S. on a temporary basis for specific reasons. Such applicants should have a non-U.S. passport from their native country along with a Form I-94, a.k.a., Arrival Departure Record or Entry Permit listing when they entered the U.S. and how long they have a right to stay. They also need a visa, such as an F-1 visa for students, unless they’re from one of the countries that has signed a visa waiver agreement with the U.S.

    You Make the Call

    Which of the following would be a legitimate reason to reject applicants who aren’t U.S. citizens?

    a.         Being a U.S. citizen is required for leasing property under HUD program rules and/or state or local law 

    b.         A non-U.S. citizen is generally less likely to pay rent on time each month

    c.          Non-U.S. citizens are totally judgment proof

    Answer:

    a. The fact that HUD program rules and/or state or local laws require landlords to verify that applicants are U.S. citizens before accepting them is a legitimate, nondiscriminatory justification.

    Wrong answers explained:

    b.         The assumption that noncitizens are less likely to pay rent is just that—an assumption, and one based on stereotypes. Consequently, it’s not justification for requiring applicants to be U.S. citizens.

    c.          The reason c. is wrong is that it’s overstated. While evicting or suing a noncitizen for lease violations poses challenges, it’s not accurate to characterize immigrants as “judgment-proof.” In fact, persons in the U.S. illegally are likely to be far more amenable to threats of litigation.

    Bill Miner: Question and Answers When Selling a Community In Oregon (First of Two Parts)

    MHCO

    A: HB 4038, which has not yet been codified, requires an owner to give written notice of the owner's interest in selling the park before the

    owner markets the park for sale or when the owner receives an offer to purchase that the owner intends to consider, whichever occurs

    first. If possible, I advise my clients to send the notice before entering into a listing agreement but definitely before actively listing the property.


    Q: Does the notice need to be sent to each tenant individually versus all tenants (e.g. "Dear Mr. Johnson" vs. "Dear Tenant")?


    A: The plain language of the law states "all tenants," but the 2014 Summary of Legislation states that the purpose of the bill is to require park owners to notify "individual park residents" if the owner is interested in selling the park. Because it appears that the original intent was to notify each individual, the safer course is to send the notice to each tenant individually.


    If a tenants committee has been formed, and the purpose of the committee is (in part) to purchase the park, and you have met with the committee in the previous 12 months, you can send a notice to the tenants' committee in lieu of all tenants. Also note that you must send a copy of the notice to the Office of Manufactured Dwelling Park Community Relations of the Housing and Community Services Department (say that 5 times fast).


    Q: What does the notice have to include?


    A: (1) The owner is selling the park; (2) The tenants, through a tenants committee, have an opportunity to purchase the park; (3) In order to compete to purchase the park, within 10 days after delivery of the notice, the tenants must form (or identify) a single tenants committee for the purpose of purchasing the park and notify the owner in writing of: (a) the tenants' interest in competing to purchase the park; and (b) the name and contact information of the representative of the tenants committee with whom the owner may communicate about the purchase; (4) The representative of the tenants committee may request financial information described in section 2(2) of the act within the 10 day period; and (5) information about purchasing a park is available from the Office of Manufactured Dwelling Park Community Relations of the Housing and Community Services Department.


    Q: Does 10 days really mean 10 days?


    A: The law discusses "delivery of the notice." I advise my clients that all notices should be sent by first class mail and 3 days should be allowed for mailing just as if you were sending a 30 day notice or a 72 hour notice. Certificates of Mailing (Not certified mail!!) for each notice are strongly encouraged. By way of example, if you send the notice on June 1, then the "10 days" would run on June 13.


    Q: What do the tenants have to do after I send them the notice?


    A: If the tenants are interested in competing to purchase the park, within the 10 days, the tenants must notify the owner in writing of their interest in competing to purchase the park, the formation or identification of a single tenants committee formed for the purpose of purchasing the park and the name and contact information of the representative of the tenants committee with whom the owner may communicate about the purchase.


    Q: Do I have to give the tenants my tax returns?


    A: No. But, during the 10 days of delivery of the notice, and in order to perform a due diligence evaluation of the opportunity to compete to purchase, your tenants may request specific financial information which may include: the asking price, if any (this provision contemplates that you may not yet know your asking price when you send your notice); the total income collected from the park and related profit centers, including storage and laundry, in the 12-month period immediately before delivery of the notice; the cost of all utilities for the park that were paid by the owner in the 12-month period immediately before delivery of the notice; the annual cost of all insurance policies paid by the owner as shown by the most recent premium; the number of homes in the park owned by the owner; and the number of vacant spaces and homes in the park. Please note that I have seen requests that ask for additional information; providing information outside of what is outlined above is discretionary.

    Bill Miner is currently Partner in Charge of the Portland office of Davis Wright Tremaine. DWT is a full service law firm with 500 attorneys on both coasts and in Shanghai, China. The Portland office consists of approximately 80 attorneys and over 80 staff. He works with clients to resolve their legal problems through pre-litigation counseling, litigation, and mediation. He tries cases in state and federal courts and through private arbitration. His experience includes defending and prosecuting business torts; breach of contract claims; disputes between and among members of limited liability companies; residential and commercial real estate matters, including landlord-tenant, title, lien, and timber trespass disputes; and probate and trust cases. He is a frequent and popular speaker at MHCO seminars and conferences. You can reach Bill at: http://www.dwt.com/people/WilliamDMiner/


    Bill Miner | Davis Wright Tremaine LLP1300 SW Fifth Avenue, Suite 2300 | Portland, OR 97201Tel: (503) 778-5477 | Fax: (503) 778-5299 Email: billminer@dwt.com | Website: www.dwt.comAnchorage | Bellevue | Los Angeles | New York | Portland | San Francisco | Seattle | Shanghai | Washington, D.C.

    Phil Querin Q&A: Accepting Rent From Non-Tenant Occupants

    Phil Querin

    Answer: One issue is accepting rent from a person occupying the space after the legal tenant has moved out. This can occur, for example, where someone is residing at the space under a Temporary Occupancy Agreement, but the approved tenant, no longer resides there. Alternatively, the person could be a lawful visitor, who has overstayed their permitted time, and the legal resident has left. ORS 90.403 deals with this:

     

    90.403 Taking possession of premises from unauthorized possessor. (1) If an unauthorized person is in possession of the premises, after at least 24 hours' written notice specifying the cause and the date and time by which the person must vacate, a landlord may take possession as provided in ORS 105.105 to 105.168 if:

    • The tenant has vacated the premises;
    • The rental agreement with the tenant prohibited subleasing or allowing another person to occupy the premises without the written permission of the landlord; and
    • The landlord has not knowingly accepted rent from the person in possession of the premises.
    • Note that service of a notice to terminate does not create a right of tenancy for the person in possession of the premises.

    It can be fatal to a landlord's effort to remove the non-tenant if rent has been accepted from them. On the other hand, if the rent is in the form of a check or money order, and signed by the legal tenant, it makes no difference who delivers it.

     

    But if the person is not the lawful tenant, I believe you have a right to refuse to accept the rental payment if it is in cash, or a check or money order in that person's name. I'm not concerned that there is no rule on it, since the law is clear (at least to me) that if the person is not your "Tenant" - i.e. the one in possession under a rental or lease agreement - you do not have to accept a rent payment from them.

     

     

    The other issue arises when a lawful resident resides in the space, but they have an occupant who has not been approved as a co-tenant or a temporary occupant. If you are going to accept them as a temporary occupancy, get them on a Temporary Occupancy Agreement. You can do a criminal background check, but not a financial one, since they are there not to subsidize the tenant's rent (as might be the case if they were a co-tenant). Accordingly, do not accept rent in any form from temporary occupant, unless it is drawn on the tenant's bank account and the check bears that out.

     

     

    As to unlawful occupants who are staying at the space, but have not been approved as a tenant and you know of their occupancy, insist that they apply for tenancy, and make sure they do not stay beyond the time allowed for visitors under the park rules, until they have been approved.

     

     

    Note, the issue of waiver is not just a question of accepting a check from the unapproved person. Acceptance of rent - even from the lawful tenant - when you know he or she is housing an unapproved person, can also result in waiver of your right to thereafter demand they vacate.

     

     

    ORS 90.412 provides in part:

     

     

    (2) Except as otherwise provided in this section, a landlord waives the right to terminate a rental agreement for a particular violation of the rental agreement or of law if the landlord:

     

    (a) During three or more separate rental periods, accepts rent with knowledge of the violation by the tenant; or

    (b) Accepts performance by a tenant that varies from the terms of the rental agreement.

    (3) A landlord has not accepted rent for purposes of subsection (2) of this section if:

    (a) Within 10 days after receipt of the rent payment, the landlord refunds the rent; or

    (b) The rent payment is made in the form of a check that is dishonored.

    (4)A landlord does not waive the right to terminate a rental agreement for a violation under any of the following circumstances:

    (a) The landlord and tenant agree otherwise after the violation has occurred.

    (b) The violation concerns the tenant's conduct and, following the violation but prior to acceptance of rent for three rental periods or performance as described in subsection (2) of this section, the landlord gives a written warning notice to the tenant regarding the violation that:

    (A) Describes specifically the conduct that constitutes the violation, either as a separate and distinct violation, a series or group of violations or a continuous or ongoing violation;

    (B) States that the tenant is required to discontinue the conduct or correct the violation; and

    (C) States that a reoccurrence of the conduct that constitutes a violation may result in a termination of the tenancy pursuant to ORS 90.392 (Termination of rental agreement by landlord for cause), 90.398 (Termination of rental agreement for drug or alcohol violations),

     

    So the take-away here is that you do not want to accept rent from anyone, even the tenant, when you know they are violating the rules, such as keeping an unapproved occupant at the space or having an unapproved pet. If you accept rent from the lawful tenant under these circumstances, return it within ten days after receipt - if the check has been cashed, write a new check back to the tenant with an explanation, and demand that the unpermitted person apply for tenancy.

     

     

    Under the statute, waiver will not occur for the first two events of accepting the rent without returning is within ten days. The third or subsequent time can constitute a waiver. Waiver does not occur if the rent is properly returned within the ten day period, no matter the number of times it's tendered.

     

     

    As for taking a rent check from the unapproved person, I don't recommend doing so unless the check is drawn on the tenant's own account. If it's a joint account with the unapproved person, don't accept it. The same holds true of any other form of payment (e.g. cash or money order) unless there is clear evidence that it came from the lawful tenant. Just remember, though, that acceptance of rent from the lawful tenant - in any form - can count as a waiver under ORS 90.412 if you know they have an unlawful occupant at the space.

     

    Phil Querin Q&A: Dealing with Abandoned Vehicles in the Community

    Phil Querin

     

    Question:  I am wondering if you can tell me how to get rid of an abandoned vehicle in our community? I have legally evicted some tenants from an owner owned home. They finally left, but I need to know how to get rid of the vehicles they left behind.

     

     

    Answer:  ORS 90.725 deals with the abandonment of owner-owned manufactured homes located in manufactured housing communities. MHCO Form No. 30 contains an extensive Intake Worksheet for park owners and managers to initiate the abandonment process. It starts with the issuance of a 45-day letter.[1]Form No. 30 includes the 45-day letter. 

     

    The 45-day letter permits the landlord to reasonably decide whether the associated personal property is, or is not, worth $1,000 or less. If the value is $1,000 or less, the landlord may dispose of it or give it without consideration to a nonprofit organization, or to a person unrelated to the landlord. The landlord may not retain the property for personal use or benefit.

     

    If the landlord is not declaring the abandonment of a home located in a manufactured housing park, the personal property abandonment statute, ORS 90.425, would apply. It deals exclusively with a landlord’s disposition of personal property, which is defined as:

     

    “…goods, vehicles and recreational vehicles and includes manufactured dwellings and floating homes not located in a facility. “Personal property” does not include manufactured dwellings and floating homes located in a facility and therefore subject to being stored, sold or disposed of as provided under ORS 90.675.” (Emphasis added.)

     

    Although the statutory procedure is much the same as for abandoned manufactured homes, the landlord would issue a “15-day letter” rather than one for 45-days. 

    • It would notify the former tenant that the property is considered abandoned;
    • It would be sent to the tenant’s space address and any other address you reasonably believe will reach them or a relative, friend, or other person known to you;
    • If you can determine that there is a lien on the vehicle, you should include the lienholder in the notice and send the letter by regular and certified mail;
    • The 15-day letter would tell the former tenant/lienholder to contact the landlord or manager at an address and phone number, to arrange for removal of the vehicle within 15 days – be sure to add 3 additional days for mailing, where appropriate;
    • You would tell them that before removal you may require payment of all removal and storage charges;
    • If you reasonably believe the value is $1,000 or less you would tell them so, together with your intent to dispose of the vehicle as described above;

     

    • If you believe the value is over $1,000 you would include that in your letter; you may sell by public or private sale, and you may participate as a bidder

     

    During this period, you have a duty to keep the vehicle in a place of safekeeping. 

     

    Although the statute does not address this alternative option, here is one that may be useful, although you should confirm with your own attorney first:  Have the vehicle towed by a towing and storage facility, and so notify the former tenant using the same 15-day letter format described above. 

     

    You should first make sure with the towing company that if there will be a charge to you, it is established up front, and the events to occur if the owner does not pick the vehicle up from them. I do not recommend this option if the car has any significant value, or there is a lienholder on title.

     

    [1] Note: The 45-day period must be extended by an additional 3-days if it is sent by regular mail.