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Fixed Term Tenancies Length - Termination - New Documents

Upon reaching the ending date, fixed term tenancies will automatically renew to a month-to-month tenancy upon the same terms and conditions (except duration and rent).

In order to renew or extend a fixed term tenancy, (and avoid rolling into a month-to-month tenancy), the landlord must submit the proposed new lease agreement to the tenant at least sixty (60 days prior to the end of the lease term. The landlord is to include with the proposed lease agreement a written statement summarizing the new or revised term, conditions or rules and regulation.

If the landlord fails to submit a proposed new lease agreement the tenancy renews as a month-to-month tenancy.

The new or revised terms, conditions, rules and regulations must:

  1. Fairly implement an existing statute or ordinance adopted after the creation of the existing agreement.
  2. Be the same as those offered to new or prospective tenants.
  3. Be consistent with the rights and remedies provided to tenants under ORS Chapter 90.
  4. Not relate to age, size, style, construction material or years of construction contrary to ORS 90.632(2)Not require an alteration of the manufactured dwelling or accessory, building or structure.

The tenant must accept or reject the proposed new rental agreement at least thirty (30) days prior to the end of the lease term.

If the tenant fails to accept or unreasonably rejects the proposed new lease agreement, the fixed term tenancy terminates on the last day of the lease term without further notice.

If the tenancy terminates for failure to renew by the tenant, and the tenant surrenders and delivers possession of the premises to the landlord, the tenant is entitled to substantially the same rights and responsibilities as a lien holder under ORS 90.675(18) (the abandonment statute) except that the term of the storage agreement may not exceed six (6) months. (Note: this is not technically an "abandonment" the lien holder's rights are delayed until the end of the tenant's storage agreement.)

Fixed termed tenancies entered into before the effective date of this 2001 Act are not made invalid because their duration is less than two years. However, upon renewal or extension in accordance with the Act, the lease agreement must comply with minimum two (2) year requirement. 

Phil Querin Q&A: Abandoned t Home Community Owner Wants to Obtain Home

Phil Querin

Answer: All good questions. The entire statute, which is lengthy, is found at ORS 90.675. (a) Can a landlord acquire a home that is in abandonment? Yes. Assuming that the abandonment process has been formally commenced, the landlord would have to wait for the 45 day period to expire and then if the property was over $8,000, it would have to be advertised and sold via sealed bid. The landlord can bid, but must make sure that the bid is high enough that it’s not going to be snapped up by another higher bid. If the property is worth $8,000 or less, the landlord could dismantle or give away to a non-profit organization. But if the landlord wanted the home, he would have to advertise and auction and then pay the property taxes and could acquire it. (b) Can he or she bid during the sealed bid process? Yes, as mentioned above. However, sealed bids mean sealed bids – no free peek by the landlord, so he knows how much to make his bid for. The playing field must be level. (c) If no one bids on the house can the landlord purchase it and at what price? Generally this should not come up, since the landlord would normally put in his own “protective bid” which is just a credit bid and represents the amount of costs and fees he’s got into the abandonment process. Thus, if no one else were to bid, the landlord would acquire it for the “protective bid.” The above discussion does not factor in what happens if there is a lender. If there is, then the entire time frame is subject to what the lender does. If it signs and returns the Storage Agreement, then the lender will have the right to try to sell the property itself. However, if the lender does not sign and return the Storage Agreement, or otherwise fails to respond to the landlord, then its interest is “conclusively presumed to be abandoned.” Note, however, that when the home is advertised prior to the private auction, the invitation to bid submitted to the newspaper for publishing must also be provided to the lender – even though it didn’t respond to the original 45-day notice. This is sometimes forgotten, since landlords assume that if the lender didn’t respond or timely exercise their right to sell the property, they don’t have a right to know when the auction is held. They do have the right to know, and the right to bid. Forgetting this can create headaches for landlords after they have sold the property to someone else.

MHCO Article: The Eviction Process And Judgments Of Restitution

MHCO

Do You Need an Attorney?


Oregon, unlike our neighbor to the North, does not require landlords to obtain the use of an attorney to appear in FED court. The necessary summons and complaint can be obtained from the courthouse and they can be filed and served quickly. This has its advantages and disadvantages: It is good insofar as it keeps the cost of the process down, but it is bad if the owner or manager fails to strictly follow all of the legal procedures required by the statutes. Accordingly, for the inexperienced manager or new owner, it is strongly, recommended that guidance first be sought, either through the MHCO, from an experienced attorney, or by consulting with a knowledgeable community management company.


Strict Compliance


Since the FED process is designed to be a "summary" or quick proceeding, the law imposes upon those seeking its assistance, i.e. owners and managers, the duty to strictly comply with all of the requirements set out in the statutes. This means, for instance, that the written notice that must precede the filing of the complaint (e.g the 72- hour nonpayment of rent notice or the 30-day notice of termination for cause) must be properly filled out to the letter. Since the notice is required to be attached to the FED complaint, and thereby becomes a part of it, if the notice is defective in any respect, the Court can unilaterally dismiss it - thus forcing the landlord or manager to start all over again. It is for this reason that before actually filing the summons and complaint which starts the FED court process, the plaintiff should closely review the notice to make sure it complies with the law.


The First Appearance


At the time the summons and complaint for eviction are filled out, a "first appearance date" will be inserted in the summon. This date is the time for both landlord and tenant to appear before the court. At that time, if the matter cannot be mediated or resolved, the tenant has to inform the judge whether he/she will either move out at a designated time, or request a trial to contest the eviction proceeding. If the tenant wants to fight the eviction, the judge will usually require that they promptly file an answer setting forth their legal defenses, and set the matter for trial. Experienced landlords and managers know full well that the first appearance is the time that many, if not most, evictions are settled. If the default is nonpayment of rent, the landlord and tenant can simply enter into a stipulated payment arrangement providing that if it is not followed by the tenant, the landlord may come back to court and upon filing of the necessary papers, have the judge issue the judgment of restitution. It is imperative that the landlord or his/her representative appear at the first appearance. The failure to do so will result in an automatic dismissal of the eviction, and the landlord will have to start all over.


The Judgment of Restitution


As noted above, the judgment of restitution is the equivalent of the court's order in favor of the landlord's complaint for eviction, and requires that the tenant vacate the premises - which in a manufactured housing community, is the space upon which the home is situated. In most cases, the court will insert a date in the judgment of restitution that will give the tenant a reasonable time to remove their belongings. Once that date has expired, however, the tenant has no further right to come upon the premises. Under the abandonment statute, assuming that the tenant voluntarily vacates the space, after seven (7) days of the tenant's absence following the date of issuance of the judgment of restitution, to commence the abandonment procedure, which is legally initiated by issuance of the 45-day letter to the tenant and other parties required by law. During this 45-day period (assuming there is no lienholder), the tenant may contact the landlord to make arrangements for removal of the home. However, such removal is conditioned upon payment of all "storage charges" which cannot exceed the existing rents. However, as discussed below, the landlord may not require the payment of accrued storage charges prior to removal of the home if the tenant was forced to vacate the space as a result of the landlord's executing upon the judgment of restitution.


Execution Upon a Judgment of Restitution


Sometimes the tenant may refuse to move, even when the court has given them a firm date to do so in the judgment of restitution. In such cases, the landlord must go to the clerk of the court to obtain a notice of restitution giving the tenant four (4) days to move out. The notice of restitution is mail and personally served (or attached to the front entrance) by the sheriff or a civil process server. After execution of the four (4) day period, if the tenant has still not vacated, then the landlord must ask the sheriff to execute upon the judgment of restitution originally granted by the court at the conclusion of the eviction trial. The means that the sheriff will go to the premises, remove the occupants and post a trespass notice on the home, advising the tenants that any further entry will result in arrest and prosecution. Although the abandonment law does not require the landlord to wait seven more days before commencing an abandonment, it does prohibit the landlord from recouping any accrued storage charges, should the tenant elect to remove the home following receipt of the 45-day abandonment letter. It is for this reason that landlords should only seek execution upon the judgment of restitution when absolutely necessary - i.e. when the tenant simply refuses to voluntarily vacate following the court's issuance of a judgment of restitutio

[1] The only exception would be if, prior to the tenant's abandonment, the landlord and tenant entered into a written agreement whereby the tenant waived his/her rights under the abandonment statute. See, ORS 90.675(21)(A).

Phil Querin Q&A: Landlord Liability For Non-Residential Structures Located On Space

Phil Querin

Answer. There is no such form. Perhaps there should be. But first, let's address some threshold issues, such as:

  • Who owns the structure?
  • Who has the duty to maintain it?
  • What happens to it when the tenant vacates the space?
  • Who would likely be held liable for injuries to persons/property using the structure?

If the structure was there when the resident first rented or leased the space, there isn'tmuch question but that the landlord "owns" it, if it remains there when the space is re-rented or re-leased. Although most rental/lease agreements and rules require the resident to "maintain" the space, in most instances, the text of these provision generally apply to landscaping-type activities. If the structure is expressly identified in the park documents, and allocates maintenance responsibility to the resident, then the issue is clearer. But it is my opinion that if the documents are silent about park-owned structures on the space, the duty to maintain, paint, etc., lies with the landlord. Why? Because the landlord drafted or selected the documents for the resident to sign, and accordingly, could have delegated the responsibility in whatever manner he/she saw fit. Having failed to do so, means that the agreement or rule will most likely be construed most strictly "against the drafter" - i.e. to the landlord.


Clearly, if the structure was on the space at the inception of the tenancy (therefor presumptively belonging to the landlord), when the resident departs, it would remain there. Similarly, if some liability occurred, it would fall on the landlord, unless it was from an event caused by the resident.


For example, say there is a storage shed located on the space at the start of the tenancy, and nothing is said in the park documents about maintenance responsibility. The resident uses the shed to store family items, including old photos and collectibles. Unbeknownst to the resident, the shed is not completely water resistant, and over the course of the winter, they are destroyed. Unless there is some evidence the resident knew about the leakage and did nothing to protect their belongings, this is likely a landlord liability.


Is this an instance in which the landlord could protect themselves by having a release of liability agreement saying that the resident assumes all responsibility for destruction or loss of any valuables stored in the shed? Possibly, but not absolutely. In other words, the more specific the agreement was, the better the chances are it would be enforced to the benefit of the landlord. But a simple statement saying that the resident assumes all responsibility for the contents stored in the shed, might not go far enough. Remember, absent the resident's duty to maintain the shed, if the landlord has the maintenance responsibility, management is arguably somewhat responsible for making sure that the shed is watertight - at least that's the argument the resident's attorney would make. So how can the landlord, who has the duty to maintain the shed, abdicate responsibility for not maintaining it in a secure manner?


Accordingly, to have a more enforceable release agreement, I submit that landlords should also have an agreement providing that: (a) landlord does not have a duty to maintain, inspect, or secure it; (b) landlord does not warrant or guarantee that the shed is waterproof, or free from mold and mildew; (c) before use, the resident should assure himself/herself that it is suitable for storage of the specific contents intended to be stored there; and (d) that the resident covenants and agrees to maintain the exterior and interior of the shed for the duration of the tenancy. Only then can you expect a full release and hold harmless clause to be effective, since by signing, the resident is now making an informed decision about the scope of responsibilities under the agreement going forward.


So the take-away here is that if you have not addressed these issues for park-owned structures in the lease, rental agreement and/or rules, you should do so upon turnover of the space. Until then, it would likely be difficult to shift responsibility onto a resident, when it was not expressly bargained for at the inception of the tenancy.


Similarly, even though a resident builds the structure, you may want to address these issues in a separate written agreement before the structure is built. In addition, you want to make sure that the construction of a tenant-built structure conforms to all applicable building codes and ordinances, including, where applicable, the taking out of one or more building permits. And if the resident hires a contractor, you will want to use MHCO Form No. 52.


And importantly, you will want to address whether the resident has a duty to remove it upon sale of the home. Alternatively, you can provide that the landlord reserves the right to make that decision if/when the resident who built it gives notice of intent to sell or remove the home. And if it stays, you'll want to have an agreement with the new resident, addressing the issues described above.


Lastly, if the structure is something built for children to play on, e.g. swing sets, ladders, slides, etc., I strongly recommend that you require the resident who built it, take it with them. Under no circumstances do you want to lease or rent space to another resident with this apparatus there. It creates too much liability for management, and even if it remained after a resident left, I would remove it before permitting possession by new residents with small children.

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.

Using MHCO Form 30 (Abandonment Form) and Form 30A (Personal Property Abandonment)

Phil Querin

 

Introduction. First, let’s start with the basics: There are two main types of property, real and personal. (There is a third category, a hybrid actually, called a “fixture,” which was originally personal property that when securely attached to the real property becomes a part of it. Removal would cause damage to the structure. Fixtures transfer with the structure unless removed by pre-agreement before closing of the sale. In residential housing, attached light fixtures are the main example.) For purposes of this article, we  will ignore fixtures.

 

Mobile and manufactured homes are personal property. They are only treated as a part of the land (i.e., as “real property”) when properly sited on a lot or parcel owned by the owner of the home and approved by the local authorities. Then, a deed to the land conveys the manufactured home as well, since they are combined under a single ownership.

 

Since the land in a manufactured housing community is owned by the landlord, and the spaces are rented to tenants, all manufactured structures on the spaces are personal property. They are either own by the tenant occupying the space, or by the park, or other third party.

 

The Conundrum. If all manufactured homes in a community are personal property, when abandonment occurs, why are there two forms? The answer is basic – at least to start. It depends on who owns the home.

 

  • Using Form No. 30. If the home is tenant-owned and the tenant abandons it, park owners and managers should use MHCO Form No. 30.[1]

 

  • Using Form No. 30A. If the home is not tenant owned, e.g., park-owned, management only needs to declare an abandonment of the other personal property on the space, such as the contents of the home, cars, RVs, and other personal property on the space itself.[2]

 

  • The RV exception. Since RVs are personal property, which form should be used when the tenant owns it but later abandons it on the space? The answer is to use MHCO Form No. 30A.

 

FAQs for Personal Property Abandonments under Form 30A.[3]

 

How long does the tenant have to respond to the notice of abandonment? 5 days if served personally, or 8 days if served by mail. This applies to all abandoned personal property except recreational vehicles. For an RV, the tenant has 45 days to respond.

 

How long after responding does the tenant have to make arrangements for removal of the personal property? 15 days. If it is a recreational vehicle, 30 days.

 

What must I do with personal property during the abandonment process? Abandoned personal property should be kept in a place of safekeeping, and management should exercise reasonable care in protecting it. Food or perishables may be disposed of, and any abandoned animals or livestock should be turned over to the proper authorities. Landlords are entitled to reasonable or actual storage costs, costs related to moving the items, and potentially, costs related to disposal.  Abandoned personal property may be stored as management sees fit, whether that is at the dwelling, at another location on the premises, or in an off-site storage unit.

 

What if the owner does not claim their personal property within the required time? If an owner or interested party does not respond to MHCO Form 30A within the appropriate window (5-8 days for personal property/45 days for recreational vehicles) the landlord is free to sell or dispose of it in accordance with the directions in Form 30A or ORS 90.425.

 

 

[1] Note: ORS 90.675 deals with abandonment of manufactured homes owned by the tenant. ORS 90.425 deals with automobiles, RVs, and all other tenant owned personal property. However, ORS 90.675(1)(e) provides that “personal property” does not include goods left inside a manufactured dwelling or floating home or left upon a rented space and subject to disposition under ORS 90.425.” The problem is that oftentimes, when a home is abandoned, other things may be abandoned as well, such as the contents of a home and personal property on the space. Thus, where the contents of the home have value over $1000, it may become necessary to use both forms. Where autos and RVs are left on the space members should definitely use both forms. MHCO is considering adding an addendum to Form 30 to combine these issues into a single form. Until then, using both forms is appropriate where the tenant abandoned both the home and significant items of personal property such as autos, motorcycles, and RVs.

[2] If the home is owned by a third party who is renting the home to a tenant who abandons it, management should immediately notify the owner-landlord. Space rent must be paid regardless of the tenant’s abandonment. If the owner-landlord does not respond after giving proper notice, file an eviction for nonpayment of rent. If the owner does not show up for court, get a judgment of restitution and then file an abandonment of the home, which is permitted under ORS 90.675. Death of a tenant owner of the home also triggers the abandonment process under that statute.

[3] Caveat: This is a summary only and does not address rights of lienholders,  tax collectors, assessors, or third-party owners. Before using this form, competent legal counsel should be consulted if questions.

Reinvesting In Capital Projects In Your Community

MHCO

Although not a true capital expenditure; computer hardware, software and peripherals do not last forever. Deciding when is the right time to replace them or upgrade is always a difficult decision. Will upgrading increase productivity? A new system can affect productivity in positive ways. In today's business environment many users have more applications open at one time and a new system with increased speed will have a positive effect on managing the time spent moving between applications. One of the obvious reasons to upgrade is your operating system is probably running Windows XP which was released to the market in 2001 and support for this system is no longer available. So not upgrading isn't even an option, it's a cost of doing business today. Advances in computers and software dictate that every few years you are going to need to make some upgrades. If you are eight years behind, this becomes a more formidable task and a larger learning curve. It's far better to continually upgrade your systems. The expense will be the same in the long run, but the result is that you will be more productive and ease into incremental training. These are all things to consider when determining a budget for your reserve account.

There are several capital improvements that can increase the value of your MHC. Filling vacant manufactured home sites is one. A vacant home site is costing you money to keep the lawn mown, the weeds removed and lot to be cleaned, not to mention the loss of revenue. It also can cause your residents angst having an unsightly empty lot next door. Putting together a strategic plan for filling your vacancies is proactive and critical. Be creative. For example, consider looking at a vacant single wide site that may be able to fit a double wide home by setting the home back and installing a front load driveway. Another is submetering water, sewer and passing through the garbage service expense. By installing water meters at each manufactured home and billing the resident's back for water, sewer and passing through the garbage you are in effect increasing your bottom line. This is one of the most equitable ways to pass on expenses to the residents as they only pay for what they use. Commonwealth can discuss with you how to install submeters with zero investment from you, the owner. Other ideas to add value is to increase curb appeal in your community and install new and attractive signs at the entrances. Maintain adequate energy efficient lighting to save on your electric bills while also promoting safety in the community. If you have vacant land, consider developing more MH sites, RV storage or storage units. All of these are things to consider when you're reinvesting into your community.

Tom Petitt
Vice President

Article provided by Tom Petitt, Vice President for Commonwealth. Tom joined Commonwealth Real Estate Services in July, 2012 and will oversee the Oregon Property Management Division and work closely with all other aspects of our company helping us further develop and grow our existing business as well as managing a portfolio of properties. Tom attended Western Oregon State University where he majored in Business and Marketing, he has over 15 years' experience in the manufactured housing industry working in property management, retail sales management, operations, and property development. Tom is a licensed Real Estate Broker in the State of Oregon. In his spare time Tom enjoys spending time with his family, coaching youth sports in his local community, and volunteering for special events and organizations such as Habitat for Humanity. Also Tom is actively involved in multiple committees at Commonwealth Real Estate Services. Learn more about Tom and the rest of the Commonwealth team here!

Rental Application Process (Part 3 of 6): Acceptable Reasons for Refusing and Applicant; Documents to Provide in Denial; Documents Required Upon Acceptance

Acceptable Reasons for Refusing an ApplicantAfter the application has been filled out, if you see that it is not complete return it. If you see something that may result in immediate disqualification such as a recent felony conviction that violates your published screening criteria, s, discuss it with the individual right away. If the prospective resident insists that you process the application then do so. However, in general, be very careful about rendering, in advance, any opinions about acceptance or rejection, since it could be used against you as evidence of discrimination if the applicant is the member of a protected class. Under normal circumstances you will be justified in refusing an applicant if he or she:o Cannot provide identification. You should always ask to see a driver's license or military ID and social security card to verify the application.o Will not furnish references from a previous landlord.o Has pets and your policy firmly forbids pets.o Has a history of property destruction.o Has bad credit and/or several unpaid debts.o Has a criminal record that may jeopardize the security/safety of residents.o Has a history of disturbing neighbors or violence.o Does not earn enough to qualify for the rent which you are asking (the month's rent should not exceed one week's take home pay).o Cannot pay one month's rent in advance.o Cannot pay security deposit/fees in advance.o Has several large objects which cannot be stored on the premises.o Plans to use the premises for something other than living purposes (for example operate a business).o Writes the initial check that is not honored at the bank.o Has more than the allowed number of vehicles.o Falsifies information on any form.o Fails to sign the rental agreement.Documents to Provide in Denial of TenancyUnless written notice of the name and address of the screening service or credit reporting agency has previously been given, the landlord shall promptly give written notice (MHCO Form 10) to the applicant. The notice (MHCO Form 10) must include the name and address of the service or agency that provided the report upon which the denial is based. If the denial is based on a credit report then additional information must be provided (MHCO Form 10A). The Fair Credit Reporting Act prevents you from telling an applicant what is on their report, but you must refer them to the credit check source listed on the screening report. Documents Required Upon Acceptance of Residency In order to comply with Oregon Law, and to provide accurate records, there are several forms that are to be completed when the applicant is accepted to become a resident in the community. These forms should be completed after you have reviewed the resident's application, and completed all background checks and tenant screening, but before the resident moves into their home.Copies of the following forms should be given to the new resident:o Copy of signed Rental Agreement signed by both manager and new resident o Copy of Park Rules and Regulations" signed by the new resident o Copy RV Storage Agreement if applicable.o Copy of Pet Agreement if applicableo Copy of "Statement of Policy" (with exhibits) signed by the new residento Copy of Receipt of Statement of PolicyThe following documents should be in the new resident's office file:o Signed "Receipt of Statement of Policy" (signed before signing rental agreement)o Signed Rental Application o Signed Rental Agreement (signed by both manager and new resident)o Park ""Rules and Regulations"" signed by the new residento Statement of Policy (with exhibits) signed by the new residento Emergency Contact Informationo RV Storage Agreement (if applicable)o Pet Agreement (if applicable) signed by the new residento A copy of criminal

Phil Querin Q&A: Rules vs. Rental Agreement - What if they conflict?

Phil Querin

Answer.   ORS 90.100(38) defines the “Rental agreement” as: “…all agreements, written or oral, and valid rules and regulations adopted under ORS 90.262 or 90.510 (6) embodying the terms and conditions concerning the use and occupancy of a dwelling unit and premises. “Rental agreement” includes a lease. A rental agreement shall be either a week-to-week tenancy, month-to-month tenancy or fixed term tenancy. (Emphasis added.)

 

So technically, “rules” are really a part of the rental agreement. Of the many definitions of terms in ORS 90.100, there is no separate definition of “rules”.  However, they are given different treatment throughout the Oregon Residential Landlord Tenant Agreement.

 

For example, ORS 90.262 (Use and occupancy rules and regulations; adoption; enforceability; restrictions) explains the intent and purpose behind rules and regulations. It provides:

 

90.262 (1) A landlord, from time to time, may adopt a rule or regulation, however described, concerning the tenant’s use and occupancy of the premises. It is enforceable against the tenant only if:

      (a) Its purpose is to promote the convenience, safety or welfare of the tenants in the premises, preserve the landlord’s property from abusive use, or make a fair distribution of services and facilities held out for the tenants generally;

      (b) It is reasonably related to the purpose for which it is adopted;

      (c) It applies to all tenants in the premises in a fair manner;

      (d) It is sufficiently explicit in its prohibition, direction or limitation of the tenant’s conduct to fairly inform the tenant of what the tenant must or must not do to comply;

      (e) It is not for the purpose of evading the obligations of the landlord; and

      (f) The tenant has written notice of it at the time the tenant enters into the rental agreement, or when it is adopted.

      (2) If a rule or regulation adopted after the tenant enters into the rental agreement works a substantial modification of the bargain, it is not valid unless the tenant consents to it in writing.

      (3) If adopted, an occupancy guideline for a dwelling unit shall not be more restrictive than two people per bedroom and shall be reasonable. Reasonableness shall be determined on a case-by-case basis. Factors to be considered in determining reasonableness include, but are not limited to:

      (a) The size of the bedrooms;

      (b) The overall size of the dwelling unit; and

      (c) Any discriminatory impact on those identified in ORS 659A.421.

      (4) As used in this section:

      (a) “Bedroom” means a habitable room that:

      (A) Is intended to be used primarily for sleeping purposes;

      (B) Contains at least 70 square feet; and

      (C) Is configured so as to take the need for a fire exit into account.

      (b) “Habitable room” means a space in a structure for living, sleeping, eating or cooking. Bathrooms, toilet compartments, closets, halls, storage or utility space and similar areas are not included. [Formerly 90.330]

 

The above element of lawful rules bear re-reading, since occasionally, I have seen landlord enforcement actions against tenants attacked for failure to comply with ORS 90.262, especially the portion of the statute that provides rules must be “…reasonably related to the purpose for which it is adopted.”

 

ORS 90.302(3)(a) (Fees allowed for certain landlord expenses; accounting not required; fees for noncompliance with written rules; tenant remedies) provides that

 

A landlord may charge a tenant a fee under this subsection for a second noncompliance or for a subsequent noncompliance with written rules or policies that describe the prohibited conduct and the fee for a second noncompliance, and for any third or subsequent noncompliance, that occurs within one year after a written warning notice described in subparagraph (A) of this paragraph. Except as provided in paragraph (b)(H) [unauthorized pet] of this subsection, the fee may not exceed $50 for the second noncompliance within one year after the warning notice for the same or a similar noncompliance or $50 plus five percent of the rent payment for the current rental period for a third or subsequent noncompliance within one year after the warning notice for the same or a similar noncompliance. 

 

ORS 90.510(2) (Statement of Policy) requires that both the rental agreement and the rules “…shall be attached as an exhibit to the statement of policy.”

 

Subsection (5) of ORS 90.510 (Statement of Policy) has similar, but not exactly the same language as quoted in ORS 90.262 above:

 

  (6) Every landlord who rents a space for a manufactured dwelling or floating home shall provide rules and regulations concerning the tenant’s use and occupancy of the premises. A violation of the rules and regulations may be cause for termination of a rental agreement. However, this subsection does not create a presumption that all rules and regulations are identical for all tenants at all times. A rule or regulation shall be enforceable against the tenant only if:

      (a) The rule or regulation:

      (A) Promotes the convenience, safety or welfare of the tenants;

      (B) Preserves the landlord’s property from abusive use; or

      (C) Makes a fair distribution of services and facilities held out for the general use of the tenants.

      (b) The rule or regulation:

      (A) Is reasonably related to the purpose for which it is adopted and is reasonably applied;

      (B) Is sufficiently explicit in its prohibition, direction or limitation of the tenant’s conduct to fairly inform the tenant of what the tenant shall do or may not do to comply; and

      (C) Is not for the purpose of evading the obligations of the landlord.

      (7)(a) A landlord who rents a space for a manufactured dwelling or floating home may adopt a rule or regulation regarding occupancy guidelines. If adopted, an occupancy guideline in a facility must be based on reasonable factors and not be more restrictive than limiting occupancy to two people per bedroom.

      (b) As used in this subsection:

      (A) Reasonable factors may include but are not limited to:

      (i) The size of the dwelling.

      (ii) The size of the rented space.

      (iii) Any discriminatory impact for reasons identified in ORS 659A.421.

      (iv) Limitations placed on utility services governed by a permit for water or sewage disposal.

      (B) “Bedroom” means a room that is intended to be used primarily for sleeping purposes and does not include bathrooms, toilet compartments, closets, halls, storage or utility space and similar areas.

 

ORS 90.610(3) (Informal dispute resolution; notice of proposed change in rule or regulation; objection to change by tenant) explains how rules are changed:

 

The landlord may propose changes in rules or regulations, including changes that make a substantial modification of the landlord’s bargain with a tenant, by giving written notice of the proposed rule or regulation change, and unless tenants of at least 51 percent of the eligible spaces in the facility object in writing within 30 days of the date the notice was served, the change shall become effective for all tenants of those spaces on a date not less than 60 days after the date that the notice was served by the landlord.

      (4) One tenant of record per eligible space may object to the rule or regulation change through either:

      (a) A signed and dated written communication to the landlord; or

      (b) A petition format that is signed and dated by tenants of eligible spaces and that includes a copy of the proposed rule or regulation and a copy of the notice.

      (5) If a tenant of an eligible space signs both a written communication to the landlord and a petition under subsection (4) of this section, or signs more than one written communication or petition, only the latest signature of the tenant may be counted.

      (6) Notwithstanding subsection (4) of this section, a proxy may be used only if a tenant has a disability that prevents the tenant from objecting to the rule or regulation change in writing.

 

      (7) The landlord’s notice of a proposed change in rules or regulations required by subsection (3) of this section must be given or served as provided in ORS 90.155 and must include:

      (a) Language of the existing rule or regulation and the language that would be added or deleted by the proposed rule or regulation change;

 

Subsection (7) of ORS 90.610 provides the statutory form to follow when changing rules.

 

In regards to rental agreements, ORS Chapter 90.510(4) mandates the minimal provisions that must appear in the rental agreement:

 

Every landlord who rents a space for a manufactured dwelling or floating home shall provide a written rental agreement, except as provided by ORS 90.710 (2)(d) [enforceability of oral rental agreements]. The agreement must be signed by the landlord and tenant and may not be unilaterally amended by one of the parties to the contract except by:

      (a) Mutual agreement of the parties;

      (b) Actions taken pursuant to ORS 90.530, 90.533, 90.537, 90.543 (3), 90.600, 90.725 (3)(f) and (7) or 90.727; or

      (c) Those provisions required by changes in statute or ordinance.

      (5) The agreement required by subsection (4) of this section must specify:

      (a) The location and approximate size of the rented space;

      (b) The federal fair-housing age classification;

      (c) The rent per month;

      (d) All personal property, services and facilities to be provided by the landlord;

      (e) All security deposits, fees and installation charges imposed by the landlord;

      (f) Any facility policy regarding the planting of trees on the rented space for a manufactured dwelling;

      (g) Improvements that the tenant may or must make to the rental space, including plant materials and landscaping;

      (h) Provisions for dealing with improvements to the rental space at the termination of the tenancy;

      (i) Any conditions the landlord applies in approving a purchaser of a manufactured dwelling or floating home as a tenant in the event the tenant elects to sell the home. Those conditions must be in conformance with state and federal law and may include, but are not limited to, conditions as to pets, number of occupants and screening or admission criteria;

      (j) That the tenant may not sell the tenant’s manufactured dwelling or floating home to a person who intends to leave the manufactured dwelling or floating home on the rental space until the landlord has accepted the person as a tenant;

      (k) The term of the tenancy;

      (L) The process by which the rental agreement or rules and regulations may be changed, which shall identify that the rules and regulations may be changed with 60 days’ notice unless tenants of at least 51 percent of the eligible spaces file an objection within 30 days; and

      (m) The process by which the landlord or tenant shall give notices.

 

Conclusion.  So, in my opinion, the differences between rules vs. rental agreement, can be generally summarized as follows:

 

  • The contents of what goes into rules, are not specifically described in the Oregon Residential Landlord Tenant Laws – the only general guidance is that they must be fairly applied, and reasonably related to the purpose for which they were enacted.
  • The rental agreement must address certain issues, as set forth in ORS 90.510(4), above.
  • A violation of either the rules or the rental agreement can result in a for cause notice of termination under ORS 90.630.
  • While rental agreements cannot generally[1] be unilaterally changed by the landlord, there is a clear process under the law for amending the rules.
  • So while “rules” are technically a part of the overall “rental agreement” between the landlord and tenant, they are the “mortar” that fills in the gaps the rental agreement doesn’t cover. So for example, while the rental agreement may require that tenants conduct themselves in such a manner as to preserve their neighbor’s quiet enjoyment of their spaces, the rules may address more specifics of this duty, such as lawn mowing, leaf blowing, loud parties, etc.
  • I frequently see much unnecessary overlap in rules and rental agreements, e.g. covering the same things, or covering them inconsistently. This is unfortunate, since it can create confusion among tenants. My rule of thumb would be that in the event of an inconsistency, you should not try to enforce a specific prohibition in one of the documents, if the other is more lenient. Or to put it another way, in the event of two provisions addressing the same issue, landlords should enforce the more lenient of them.

 

 

 

 

 

 

 

[1] There are several exceptions relating to changes which, for example, permit landlords to take advantage of newer statutes that give rights not formerly described by the law or found in rental agreements, such as the right to submeter spaces, etc.

Phil Querin Q&A: May a Landlord Unilaterally Decline to Renew a Resident's Fixed Term Tenancy?

Phil Querin

Answer: In a word - No. Or, to be more precise, as discussed below, if you do not renew the lease, it will automatically become a month-to-month tenancy on the same terms as the lease. In other words, your non-renewal will not result in forcing the tenant to vacate the space.

When this law was first being discussed, this issue was addressed. Prior to enactment, there was an open question whether fixed term tenancies [i.e. leases - those with definite start and ending dates] were even legal. From the tenants' perspective, under the manufactured housing landlord-tenant laws, since a landlord cannot terminate a tenancy "without cause," a lease that expires without renewal is the same thing i.e. termination without cause. Accordingly, ORS 90.545 was enacted, which provided protections to tenants against the possibility of unilateral nonrenewal.

Is this unfair to a landlord, such as yourself, when an applicant is approved, ostensibly based upon a satisfactory application, who then becomes the "Tenant From Hell?" Some would say that the landlord's best protection is at the front end of the business relationship, since he/she is given a full and complete opportunity to set out all screening criteria and performing a thorough vetting of the applicant's financial, rental, and criminal background. But once the landlord approves the applicant - presumably because he/she passed the vetting process - they have the right to remain at the space, so long as they don't commit certain material violations, such as nonpayment of rent, breach the rules, rental agreement, state law, or commit certain actions outrageous in the extreme.

Here is how the fixed term tenancy law, found at ORS 90.545 and 90.550, works:

  • At least 60 days prior to the ending date of the lease term the landlord must provide to the tenant a proposed new lease, together with a written statement that summarizes any new or revised terms, conditions, rules or regulations.
  • The new rental agreement may include new or revised terms, conditions, rules or regulations, if:
  • They fairly implement a statute or ordinance adopted after the creation of the pre-existing lease; or
  • They are the same as those offered to new or prospective tenants at the time the new proposed lease is submitted to the tenant and for the preceding six-months prior to submission period;
  • If there have been no new or prospective tenants during the six-month period, the new lease terms must be same as are customary for the rental market; and
  • They are consistent with the rights and remedies provided to tenants under ORS Chapter 90; and
  • Do not relate to the age, size, style, construction material or year of construction of the manufactured dwelling [or floating home] contrary to ORS 90.632 (2) (Footnote 1); and
  • Do not require an alteration of the manufactured dwelling [or floating home] or alteration or new construction of an accessory building or structure.
  • The tenant may accept or reject a landlord's proposed new rental agreement at least 30 days prior to the ending of the term by giving written notice to the landlord.
  • Note that if a landlord fails to submit a proposed new rental agreement as allowed, the tenancy renews as a month-to-month tenancy under the same terms as the prior lease, except that the landlord has the right to increase the rent unilaterally, pursuant to ORS 90.600.
  • If the tenant fails to accept or unreasonably rejects a landlord's proposed new rental agreement, the fixed term tenancy terminates on the ending date without further notice and the landlord may take possession through the eviction process, assuming the tenant does not vacate the space and remove the home.
  • However, if the tenant surrenders possession of the space prior to the filing an eviction, he/she has the right to enter into a written storage agreement with the landlord, and then has the same rights and responsibilities of a lienholder during an abandonment, i.e. pay storage fees, maintain the space, and sell the home within six months [rather than 12 for lienholders]. See, ORS 90.675 (19).

Conclusion. My suggestion is that if your tenant is continually causing problems, paper your file thoroughly, showing the efforts you've made to work with that person. If there are complaints from other residents, document them. Eventually, the tenant will slip up - doing something that gives you the basis for an eviction. If he is a chronic late payer, consider using the three strikes law, found in ORS 90.630(8). Then find a good landlord attorney and discuss the best method to evict the tenant. You will then be armed with good evidence for the judge or jury to show that you walked the extra mile with this person, but they simply refused to cooperate. And remember that although there are restrictions on the contents of the new lease you offer, it may contain provisions that will give you a better foundation for the eviction. Good luck!

Footnote 1: This specific protection was important to the tenant lobby, since until it was enacted, there was an open question as to whether landlords could impose as a condition upon accepting an applicant who was purchasing an older home, that it must be removed upon subsequent resale. In addition, ORS 90.632 was enacted which permits landlords to expressly require that homes be repaired due to damage or deterioration.