Search

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

Phil Querin

 

 

 

Question:  We have a resident in our community that has been nothing but trouble.  He is on a two year lease that is coming up for renewal.  Can we simply decline to renew his lease?

 

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 90.545was 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);[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!

 

[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.

Phil Querin Q&A - Military Personnel and Landlord-Tenant Law

Phil Querin

Answer. There are several that come into play:

  ORS 90.475 (Termination by tenant due to service with Armed Forces or commissioned corps of National Oceanic and Atmospheric Administration) provides that:
  • A tenant may terminate a rental agreement upon written notice if the tenant provides the landlord with proof of official orders showing that the tenant is:

(a)Enlisting for active service in the Armed Forces[1] of the United States;

(b)Serving as a member of a National Guard or other reserve component or an active service component of the Armed Forces of the United States and ordered to active service outside the area for a period that will exceed 90 days;

(c)Terminating active service in the Armed Forces of the United States;

(d)A member of the Public Health Service of the United States Department of Health and Human Services detailed by proper authority for duty with the Army or Navy of the United States and: (A) Ordered to active service outside the area for a period that will exceed 90 days; or (B) Terminating the duty and moving outside the area within the period that the member is entitled by federal law to the storage or shipment of household goods; or

(e)A member of the commissioned corps of the National Oceanic and Atmospheric Administration ordered to active service outside the area for a period that will exceed 90 days.

  • Termination of a rental agreement is effective on the earlier of:
  1. A date determined under the provisions of any applicable federal law; or (b) The later of: (A) 30 days after delivery of the notice; (B) 30 days before the earliest reporting date on orders for active service; (C) A date specified in the notice; or (D) 90 days before the effective date of the orders if terminating duty described under subsection (1)(d)(B) of this section or terminating any active service described in this section.
  • A tenant who terminates a lease on account of the reasons listed above is not: (a) Subject to a penalty, fee, charge or loss of deposit because of the termination; or (b) Liable for any rent beyond the effective date of the termination.

[1] "Armed Forces of the United States" means the Air Force, Army, Coast Guard, Marine Corps or Navy of the United States.

Phil Querin Q&A: Pictures of Prospective Tenants

Phil Querin

Answer: First, I must ask what is the reason for photos of tenants and occupants? I suspect there may be a legitimate reason, but if you cannot explain it (other than "we've always done it that way") you might consider discontinuing the practice. I do agree that it is premature to get pictures of prospective tenants, etc., until they have been accepted as tenants. Thereafter, if there is a legitimate reason for the information, you make take the pictures. A photograph consensually given, is not, in my opinion, illegal if it serves a legitimate business purpose.

 

Second, assuming there is a legitimate reason, my concern would be what happens to the photos thereafter. You might want to consider scanning and keeping the personal photographic information in a secure electronic storage, away from the risk of indiscriminate access.

 

 

This same advice applies to any confidential consumer information (e.g. social security numbers) - keep it safely stored, as you could be held liable for the theft or abuse of this information. When the tenancy has ended, photos and personal information should be destroyed.

 

Tenant Files

Before any tenant moves into your community the tenant's file should contain the following information:

  1. Completed Application
  2. Signed Rental Agreement. (Resident is to receive a copy)
  3. Signed Rules and Regulations (Resident is to receive a copy)
  4. Signed Statement of Policy including Rent History Addendum. (Tenant is to have received a copy of the Statement of Policy prior to signing rental agreement.)
  5. Copy of Homeowner's insurance policy with community named as an interested party (for the purpose of being notified of cancellation of insurance. (This is for pets only.)
  6. Credit check results
  7. Rental check results
  8. Criminal check results
  9. Application screening fee receipt
  10. Pet Agreement - Identify type of pet, name, size. You might consider taking a picture of the pet to include in your file in case you need to identify the pet in the future. Resident must sign the pet agreement. (Resident is to receive a copy)
  11. Proof of Age if 55 and older community (photo ID, driver's license)
  12. RV Storage Agreement. Identify type of RV (i.e. boat, camper, trailer, etc.) and include license number and description of recreational vehicle. (Resident is to receive a copy)

Any and all notices/correspondence between landlord/manager and resident 

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

Phil Querin

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

Rental Application Process

As a community manager, you will normally be charged with accepting or rejecting prospective residents. This is one of the most important functions that you will perform as a manager of a manufactured home community. Done properly and effectively, the rental application and screening process will minimize potential problems in landlord - resident relations. If the process is done incorrectly the seeds of future problems will be sown. Every prospective resident should be given sufficient information to make an informed decision about living in a manufactured home community.

When an individual stops by the manufactured home community office inquiring on the possibility of becoming a resident, always give them an application packet. Anyone who is interested in applying should be given the application packet - inconsistency in giving out application packets could lead to cause of action by the resident selling the home in the community or a fair housing violation.

The application packet is your opportunity to sell the prospective resident on your community. Include in the application packet an application and "Minimum Criteria Standards", optional information may include what homes are available in the community, a community newsletter, information on the history of the community, the advantages of living in a manufactured home community etc. You may also want to include at this time a copy of the rental/lease agreement, rules and regulations, rent history, and statement of policy. Remember, you want to sell the prospective resident on your community, but you also want them to make a well informed decision.

Providing a prospective resident's with extensive information regarding your manufactured home community allows the applicant to evaluate for themselves if they qualify. Including what your expectations are in order to qualify and expectations and requirements to maintain residency in the community allows the prospective resident to self qualify.

The overall rental application process should include:

  1. Review application to make sure it has been completely filled out.
  2. Check to make sure that the applicant has included social security number, driver license information etc.
  3. Provide the applicant with a copy of the Statement of Policy (keep a signed copy or receipt for your file), the rent history of the space, Rental Agreement/Lease, Park Rules & Regulations, RV Storage Agreement and Pet Agreement (if applicable), and a Flood Plain Notice. None of these documents should be signed by the community owner or manager until the application process is complete and the prospective resident is accepted.
  4. Collect application fee.
  5. Provide prospective resident with application fee receipt.
  6. Conduct credit, rental and criminal check.
  7. Attach copies of credit, rental and criminal check to application
  8. If credit, rental and criminal checks are acceptable contact prospective resident.
  9. If they are denied and they are purchasing an existing home in the park, send them an application denial form. Also, send a copy to the resident selling the home and one for the tenant's file.

Under current Oregon law you will have not more than 7 days to accept or reject a prospective resident. The 7 days begins on the day of receipt of a complete and accurate written application. The landlord and the prospective resident may agree to a longer time period for the landlord to evaluate the prospective resident's application to address any failure to meet the landlord's screening or admission criteria.

If the existing resident fails to give the required 10 day notice in writing prior to the sale of the home, the landlord may extend the written application process by 10 days. (ORS 90.680)

An application is not complete until the prospective purchaser pays any required applicant screening charge and provides the landlord with all information and documentation required pursuant to ORS 90.510 including any financial data and references. 

Overview of Rental Application Procedures

As a community manager, you will normally be charged with accepting or rejecting prospective residents. This is one of the most important functions that you will perform as a manager of a manufactured home community. Done properly and effectively, the rental application and screening process will minimize potential problems in landlord - resident relations. If the process is done incorrectly the seeds of future problems will be sown. Every prospective resident should be given sufficient information to make an informed decision about living in a manufactured home community.

When an individual stops by the manufactured home community office inquiring on the possibility of becoming a resident, always give them an application packet. Anyone who is interested in applying should be given the application packet - inconsistency in giving out application packets could lead to cause of action by the resident selling the home in the community or a fair housing violation.

The application packet is your opportunity to sell the prospective resident on your community. Include in the application packet an application and "Minimum Criteria Standards", optional information may include what homes are available in the community, a community newsletter, information on the history of the community, the advantages of living in a manufactured home community etc. You may also want to include at this time a copy of the rental/lease agreement, rules and regulations, rent history, and statement of policy. Remember, you want to sell the prospective resident on your community, but you also want them to make a well informed decision.

Providing a prospective resident's with extensive information regarding your manufactured home community allows the applicant to evaluate for themselves if they qualify. Including what your expectations are in order to qualify and expectations and requirements to maintain residency in the community allows the prospective resident to self qualify.

Rental Application Process

The overall rental application process should include:

  1. Review application to make sure it has been completely filled out.
  2. Check to make sure that the applicant has included social security number, driver license information etc.
  3. Provide the applicant with a copy of the Statement of Policy (keep a signed copy or receipt for your file), the rent history of the space, Rental Agreement/Lease, Park Rules & Regulations, RV Storage Agreement and Pet Agreement (if applicable), and a Flood Plain Notice. None of these documents should be signed by the community owner or manager until the application process is complete and the prospective resident is accepted.
  4. Collect application fee.
  5. Provide prospective resident with application fee receipt.
  6. Conduct credit, rental and criminal check.
  7. Attach copies of credit, rental and criminal check to application
  8. If credit, rental and criminal checks are acceptable contact prospective resident.
  9. If they are denied and they are purchasing an existing home in the park, send them an application denial form. Also, send a copy to the resident selling the home and one for the tenant's file.

Under current Oregon law you will have not more than 7 days to accept or reject a prospective resident. The 7 days begins on the day of receipt of a complete and accurate written application. The landlord and the prospective resident may agree to a longer time period for the landlord to evaluate the prospective resident's application to address any failure to meet the landlord's screening or admission criteria.

If the existing resident fails to give the required 10 day notice in writing prior to the sale of the home, the landlord may extend the written application process by 10 days. (ORS 90.680)

An application is not complete until the prospective purchaser pays any required applicant screening charge and provides the landlord with all information and documentation required pursuant to ORS 90.510 including any financial data and references. 

Phil Querin Q&A: Towing Vehicles in the Community

Phil Querin

Answer. This can be a complicated issue. First, there are a series of state statutes governing the towing of vehicles from private property (here). They should be carefully reviewed before undertaking this process.

 

Here is a relevant portion of the law:

 

 

98.810 Unauthorized parking of vehicle on proscribed property prohibited. A person may not, without the permission of:

 

(1) The owner of a parking facility, leave or park any vehicle on the parking facility if there is a sign displayed in plain view at the parking facility prohibiting or restricting public parking on the parking facility.

(2) The owner of proscribed property, leave or park any vehicle on the proscribed property whether or not there is a sign prohibiting or restricting parking on the proscribed property.

 

Also, some cities and counties may have their own ordinances. The City of Portland, for example, has very specific rules (here). Gresham and Tualatin do as well. Plus, the Oregon Department of Justice has various consumer protection rules against "predatory towing". (here).

 

For manufactured housing communities, I suggest going much farther than relying on state or local laws. If your community decides to do this, it should be clearly disclosed in the rules and regulations. Of utmost importance is proper visible signage, which can either be created by management, or provided by the towing company you decide to use. Make sure the company has a good reputation in all respects, and no records of consumer complaints.

 

 

If the violator is a resident, I suggest one or more warnings (following a protocol in your rules) before having the vehicle towed. Once towed, the car is impounded, and the cost of getting it released is not insubstantial, and the towing company has storage lien rights. If the process is not strictly followed, the owner could have a claim against management for conversion, i.e. the civil side of theft.

 

 

Fining is a much safer alternative, but must also follow community rules. The worst that can happen if the fine is levied in error is to rescind it. Making an error in the lead-up or during a tow, can be much more costly to management.

 

 

Fines can be enforced with a 30-day notice under ORS 90.630, so long as it is found in the rules. I suggest a warning notice first. Take a picture of it on the car, with the plate visible. Include the date and time. Mail a copy of the notice and the picture to the resident within 7 - 10 days. Use a certificate of mailing.

 

 

Make sure there is proper visible signage describing the proscribed area, the times, if applicable, and the amount of the fine.

 

 

If the fine increases on multiple violations, describe that, or reference the park rule. Do not make the fine punitive. If other communities have such violations, find out what their fines are. Always use the rule of reason; don't impose a fine that most residents could not afford.

 

 

The issue of visitors is somewhat different, but rules may be enforced against the resident whose guest they are. That is why a warning notice should first be given. The notice and picture would go to the resident, who will, hopefully, warn their visitor about obeying marked No Parking signs.

 

The Time Is Now

MHCO

Are your catch basins cleaned out and ready for the fall rains, and are your speed bumps painted so vehicles and pedestrians can see them through the long winter months... neither of these two tasks take a lot of time or money, and Residents appreciate some of the attention to this detail!

Have you sent a "Prepare For Winter Memo" to your Residents reminding them to clean gutters, check their heat tape/pipe insulation? Have you WALKED your property taking note of any limbs on tall trees that need pruning attention in the fall and winter wind storms? While on your daily walk-throughs, did you follow-up on your spring four sided inspection reminding Residents to remove items improperly stored outside or in view of the street? Tarps suddenly have a way of appearing once fall rains start, so you will want to include in the memo that these are not allowed. (Check your "Guidelines For Living" aka R&Rs for inclusion of this prohibition!)

How about your inventory of emergency ice melt and sand... do you have them available for common area walkways... mailbox, clubhouse, laundry room and office entry areas... ? What is your plan for the leaf litter that can be overwhelming in the fall? If you own your snowplow equipment, is it serviced and ready to go? Before the rest of the property owners beat you to the phone, you may want to advance negotiations with a local snow removal company... now is the time to make the call and ask for a contract!

There is still an enormous list of tasks ahead of us especially if you own communities with outdoor pools, irrigation, systems, RV storage areas, lawn equipment and the like. These are all the PHYSICAL and FACILITY maintenance items that require our attention before the long winter "sleep." BUT, equally important is sharpening your pencil and looking back at the past year's financials and preparing your budget for NEXT year! Have you contacted utility agencies to establish anticipated raises on their part? How about your insurance agent or County Assessor? Did you sit down with your manager to generate a list of areas that he/she believes need attention administratively???? Have either of you generated a comparable market analysis of rents in your area... exactly where do YOU stack up??

The BEST run MHCs are occupied with content Residents who receive VALUE for their rental dollars. Therefore a very large part of our jobs is not just anticipating and addressing the physical and administrative needs of our communities as partially illustrated above; most importantly, treating Residents with respect and attention to detail will yield a rent roster of Tenants who will exhibit the pride of ownership we all strive to have in our land lease communities.

Joel Erlitz

First Commercial Property Corp

4500 Kruse Way #345

Lake Oswego, OR 97035

Phone: 206-985-7275

Fax: 206-985-3876

Email: ross@fcpcmgt.com

Web: http://firstcommercialpropertycorp.com

Sally Harrington

First Commercial Property Corp

4500 Kruse Way #345

Lake Oswego, OR 97035

Phone: 206-985-7275

Fax: 206-985-3876

Email: ross@fcpcmgt.com

Web: http://firstcommercialpropertycorp.com

Phil Querin Q&A: Additional Thoughts on Home Burns Down in Community

Phil Querin

ORS 90.675 is the abandonment law that applies generally to homes located in manufactured housing communities. Today it contains 23 separate subsections, a behemoth in size compared to most statutes. Buried 21 sections down in the subterranean recesses of the statute is that portion of the law dealing with health, safety and welfare issues, in which 45 day letters and 30 response periods could not possibly work. In such situations, time is of the essence. Accordingly, subsection 21 sets forth a fast-track protocol for declaring the abandonment of a home that poses certain risks to others (such as the abandoned shell of a home destroyed by fire). Below is a summary of what this subsection says:

If a governmental agency determines that the condition of the abandoned home constitutes an extreme health or safety hazard under state or local law and the agency determines that the hazard endangers others in the facility and requires quick removal of the property, the landlord may sell or dispose of it by taking the following steps[1]:


  • The date by which a tenant, lienholder, personal representative or designated person must contact a landlord to arrange for the disposition of the property shall not be less than 15 days after personal delivery or mailing of the abandonment letter required by ORS 90.675(3);
  • The date by which a tenant, lienholder, personal representative or designated person must remove the property must be not less than seven (7) days after the date the tenant, lienholder, personal representative or designated person issues the abandonment letter;
  • The contents of the abandonment letter must be in accordance with ORS 90.675(5), except that:
    • The dates and deadlines in the notice must be consistent with the fast-track protocol above;
    • The abandonment letter must state that a governmental agency has determined that the property constitutes an extreme health or safety hazard and must be removed quickly; and
    • The landlord must attach a copy of the agency's determination to the abandonment letter.
    • If the tenant, a lienholder or a personal representative or designated person does not remove the property within the time required under the abandonment letter, the landlord or a buyer at a sale conducted under ORS 90.675(11) must promptly remove the home from the facility.
    • Contrary to ORS 90.675(19), the landlord is not required to enter into a storage agreement with a lienholder, personal representative or designated person.

Thanks, John!

[1] Note: the following steps are exceptions to the rest of ORS 90.675. This means that if there is no exception in this list, the rest of the statute will apply.