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Phil Querin Q&A: Applicant Pays Application Fee - Can Landlord Also Charge a Move-In Fee?

Phil Querin

Answer: This question involves 90.297, which provides as follows: - Except as permitted in ORS 90.295 (fees for tenant screening charges) a landlord may not charge a deposit or fee, however designated, to an applicant who has applied to a landlord to enter a rental agreement for a dwelling unit. - A landlord may charge a deposit, however designated, to an applicant for the purpose of: _ Securing the execution of a rental agreement, after approving the applicant's application but prior to entering into a rental agreement. _ Is so, the landlord must give the applicant a written statement describing: - The amount of rent and the fees the landlord will charge and the deposits the landlord will require; and - The terms of the agreement to execute a rental agreement and the conditions for refunding or retaining the deposit. - If a rental agreement is executed, the landlord shall either apply the deposit toward the moneys due the landlord under the rental agreement or refund it immediately to the tenant. - If a rental agreement is not executed due to a failure by the applicant to comply with the agreement to execute, the landlord may retain the deposit. - If a rental agreement is not executed due to a failure by the landlord to comply with the agreement to execute, within four days the landlord shall return the deposit to the applicant either by making the deposit available to the applicant at the landlord's customary place of business or by mailing the deposit by first class mail to the applicant. - If a landlord fails to comply with these rules, the applicant or tenant, as the case may be, may recover from the landlord the amount of any fee or deposit charged, plus $150. Based upon the above, it is my opinion that it would be improper to charge a "move-in fee," unless it was designed to secure the execution of the rental agreement before the applicant took occupancy. If the rental agreement is already signed, there is nothing to "secure" and the fee would be inappropriate.

Phil Querin Q&A: New and Not So New Manager's Management Mistakes

Phil Querin

Question.  As new managers, we are concerned about being able to spot problem issues before they get out of control.  What are some of the major management mistakes we should watch out for? 

 

Answer:  There are several issues that I see repeatedly.  Here are a few:

 

  1. Managers not adequately papering their file before taking legal action against a resident.  Judges want to see that you’ve “walked the extra mile” with the resident, making every reasonable effort to bring them into compliance.  This means starting with a personal conversation with them about the problem and then making notes of the date, time, and matters discussed and the resident’s responses. Next try a note or letter without using a formal termination notice.  Only after it becomes apparent that you will have to go the formal route should you do so. 

 

  1. Failing to act promptly when a resident violate the rules.  Although many things are not waivable, such as maintenance violations, some definitely are, such as unpermitted pets or occupants.  When there is a belief that the resident has either an unapproved pet or occupant, the resident should be contacted immediately.  With pets (assuming they are not in violation of the rules against breeds, or numbers), you want to promptly get them onto a Pet Agreement.  With occupants you should use the Occupancy Agreement and run a background check. (Make sure you don’t require a financial background check, since that is not permitted on occupants – only tenants.) If the resident delays in complying, get a 30-day notice issued and do not accept rent until the matter is resolved.  I have seen too many managers accept rent and work for months with the resident, not realizing that they are being lulled into believing the resident will ultimately cooperate – until it’s too late.

 

  1. Failing to properly prepare a notice of termination.  Oregon law is very strict when it comes to the preparation of notices. Even the slightest error can be fatal. Make sure you’re using the correct MHCO form [e.g. don’t use a 30-day notice for failure to maintain under ORS 90.630, when you should be using a 30-day notice for repair and deterioration under ORS 90.632.]  When you draft the notice, have someone else read it for content and accuracy.  Then do so again yourself.  If you realize that you sent out an incorrectly prepared notice, send out a corrected one and state that it rescinds and replaces the incorrect one.  

 

  1. Accepting residents you have doubts about.  Always do a “gut-check.”  If you think the applicant would be problematic, look closely at their application and references.  While you cannot and should not reject applicants arbitrarily, if they are on the cusp – i.e. you could legitimately accept or reject - give careful consideration to your decision and don’t let it be dictated by your desire to just fill a space. 

 

  1. Not understanding the range of solutions when dealing with a resident.  By this I mean, don’t just fire out a notice as a knee jerk reaction to a violation.  A good example is a resident who is intoxicated and gets into a verbal altercation with another resident.  Say it gets out of control, and threats are made by the resident.   If this is unusual for the resident and out of character for him, don’t simply send a 24-hour notice.  The law is quite clear that you are notto use a 24-hour notice if another form of notice, e.g. a curable 30-day notice would work.  Remember, a repeat violation with six months following the date of the 30-day notice gives you the right to terminate with a 20-day non-curable notice.  Judges don’t like to terminate manufactured housing residents, given the drastic consequences.  You want to show the judge that you were not being heavy-handed, but tried the most rationale and reasonable approach first.

Phil Querin Q&A: Applicant Qualifies, Moves In, Does not Sign Rental Agreement

Phil Querin

Answer: First and foremost, send the checks back as soon as they come in. Do not hold onto them, as there is Oregon case law saying that doing so for an unreasonable amount of time can constitute acceptance. Include a letter with the checks reiterating what you told him about the necessity of the repairs and the need to sign the rental agreement. I hope the nature of the repairs and the amount of time he has to complete them are a part of the rental agreement. IF not they should be. The only real way to enforce this requirement is to make the repairs a written condition of the tenancy. Do not accept any rent from him unless and until the tenant has signed the rental agreement and it contains an explicit description of the work he is to do and a completion date. If he takes possession without having signed a written rental agreement, you may give him a 24-hour notice to terminate under ORS 90.403. The statute contemplates an improper subleasing arrangement which is not the case here. However, in all respects, it should work, since his possession is unauthorized and in possession without a signed rental agreement. Make sure that you use the proper form of notice, as this is not the same situation as giving a 24-hour notice for outrageous conduct under ORS 90.396. Alternatively, if you have rules in the community that prohibit occupancy without a written rental agreement, you could issue a 30-day notice under ORS 90.630(1)(b). That way, if he cured by signing the rental agreement (with the repair provision in it) he could stay. This second alternative, though more time consuming, gives him a chance to come into compliance before having to vacate.

Phil Querin Article: New Rent Control Laws

On July 6, 2023 the Oregon Legislature passed SB 611 which lowered the existing cap on annual rent increases for residential tenancies.  With the Governor's signature the bill is now the law.

 

Every year in late September, the state of Oregon calculates a maximum rent increase for residential tenancies based on the preceding year’s September Consumer Price Index for the West Region (CPI). The formula is a base of 7% plus the CPI. Typically, this results in a maximum rent increase of around 9%. Last year, due to pandemic-related inflation the CPI shot up to 7.6%, resulting in a maximum allowable residential rent increase for 2023 of 14.6%.

 

A new 10% cap has gone into effect as of July 6, 2023. Any rent increases going into effect from this date until December 31, 2023 may not be more than 10% [see note about rent increases in the City of Portland, below]. The new rental cap for 2024 will be calculated and published by the State of Oregon in the fall.

 

New Cap: SB 611 retains ORS 90.600’s the statutory formula of 7% plus the CPI, however residential rent increases will now be capped at 10%, regardless of whether the CPI exceeds 3%. All tenancies subject to ORS 90.600, except week-to-week tenancies, are subject to the following rules:

  1. A landlord may only increase rent with written notice to the tenant at least 90-days prior to the rent increase; and
  2. A landlord may not increase the rent more than once in any 12-month period.

 

Exemptions: Landlords are exempt from the rent cap under two circumstances:

  1. The first certificate occupancy for the unit was issued less than 15 years from the date of the notice of rent increase; or
  2. The unit is affordable housing under a federal, state or local program and the increase in rent:
    1. Does not increase the tenant’s portion of subsidized rent; or
    2. Is required by the federal, state, or local program or because of a change in the tenant’s income.

 

If a landlord is claiming exemption from the cap on the grounds mentioned above, the exemption must be noted in the 90-day rent increase notice.

 

City of Portland: Landlords in the City of Portland should note that the new statewide 10% rental cap does not 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%.

 

Phil Querin Article: When Does the Rent Cap Start under SB 611?

Phil Querin

Introduction. SB 611 amended the Rent Cap law. It became effective on July 6, 2023, meaning that all rent increase notices on or after that date had to conform to the new law. Section 5 of SB 611 applies to mobile home tenancies. It is substantially similar to the existing statute (ORS 90.600) but clarifies things a bit. The only major change is that there is now a rent cap set at 10%.


 

The Calculation. Unless exempted by ORS 90.600, a Rent Increase for any calendar year may not exceedthe lesser of: (a) ten percent (10%) or (b) the sum of seven percent (7.00%) times the Current Rent (7% XCurrent Rent) plus the percentage change in the consumer price index (“CPI”) times the Current Rent (%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 of the United States Department of Labor (“BLS”) at the end of September of each year. Landlords are to use the CPI numbers that are operational when the rent increase notice is sent.

 

If a rent increase notice is sent out before the September 30, 2023 numbers are out, then landlords must use the current calculation. The max rent increase will always be between 7.00% and 10% (between 7.0% and 9.9% if in Portland) subject to the Rent Cap if it applies. It does not apply if the certificate of occupancy of the dwelling is less than 15 years, or it is on a state/local/federal affordable housing program.

 

MHCO Form 49. We will be amending the form before the end of September when the new CPI numbers are released. The 2023 numbers will be operational until Sept 30, 2024. [1]

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

  • Assume I issue a 90-day notice on September 1. I am using the current MHCO Form 49 which uses the 10% cap (since SB 611 became effective July 6, 2023) because the CPI was 7.6%, and CPI + 7% = 14.6%. The earliest my rent increase could go into effect is December 1 (assuming manual delivery).
  • Assume I issue a 90-day notice on October 1. I would be using an UPDATED Form 49 which would use the post-Sept. 30 CPI number to calculate the maximum cap. That cap will be between 7% and 10% depending on the September 30 numbers. The earliest my rent increase would go into effect is December 30 (assuming manual delivery)

 

[1] Note: Form 49 (and the ORLTA) specify a 90-day minimum, 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 2024. Just don’t forget that the 10% cap has applied since July 6, 2023.

Phil Querin Q&A: Religious and Political Material Left in Community

Phil Querin

Answer: This is a new one. The Oregon landlord tenant law does not expressly address this specific issue. The closest it comes are the following laws:

1. ORS 90.755 Right to speak on political issues; limitations; placement of political signs:

(1) No provision in any bylaw, rental agreement, regulation or rule may infringe upon the right of a person who rents a space for a manufactured dwelling or floating home to invite public officers, candidates for public office or officers or representatives of a tenant organization to appear and speak upon matters of public interest in the common areas or recreational areas of the facility at reasonable times and in a reasonable manner in an open public meeting. The landlord of a facility, however, may enforce reasonable rules and regulations relating to the time, place and scheduling of the speakers that will protect the interests of the majority of the homeowners.

(2) The landlord shall allow the tenant to place political signs on or in a manufactured dwelling or floating home owned by the tenant or the space rented by the tenant. The size of the signs and the length of time for which the signs may be displayed are subject to the reasonable rules of the landlord. (Emphasis added.)

2. 90.750 Right to assemble or canvass in facility; limitations. No provision contained in any bylaw, rental agreement, regulation or rule pertaining to a facility shall:

(1) Infringe upon the right of persons who rent spaces in a facility to peaceably assemble in an open public meeting for any lawful purpose, at reasonable times and in a reasonable manner, in the common areas or recreational areas of the facility. Reasonable times shall include daily the hours between 8 a.m. and 10 p.m.

(2) Infringe upon the right of persons who rent spaces in a facility to communicate or assemble among themselves, at reasonable times and in a reasonable manner, for the purpose of discussing any matter, including but not limited to any matter relating to the facility or manufactured dwelling or floating home living. The discussions may be held in the common areas or recreational areas of the facility, including halls or centers, or any resident’s dwelling unit or floating home. The landlord of a facility, however, may enforce reasonable rules and regulations including but not limited to place, scheduling, occupancy densities and utilities.

(3) Prohibit any person who rents a space for a manufactured dwelling or floating home from canvassing other persons in the same facility for purposes described in this section. As used in this subsection, “canvassing” includes door-to-door contact, an oral or written request, the distribution, the circulation, the posting or the publication of a notice or newsletter or a general announcement or any other matter relevant to the membership of a tenants’ association.

(4) This section is not intended to require a landlord to permit any person to solicit money, except that a tenants’ association member, whether or not a tenant of the facility, may personally collect delinquent dues owed by an existing member of a tenants’ association.

(5) This section is not intended to require a landlord to permit any person to disregard a tenant’s request not to be canvassed. (Emphasis added.)

3. 90.740 Tenant obligations. A tenant shall:

(3) Behave, and require persons on the premises with the consent of the tenant to behave, in compliance with the rental agreement and with any laws or ordinances that relate to the tenant’s behavior as a tenant.

(4) Except as provided by the rental agreement:

(a) Use the rented space and the facility common areas in a reasonable manner considering the purposes for which they were designed and intended;

(i) Behave, and require persons on the premises with the consent of the tenant to behave, in a manner that does not disturb the peaceful enjoyment of the premises by neighbors. (Emphasis added.)

So, you see, this simply isn’t addressed in the landlord-tenant law. Nor should it be. Clearly, the resident leaving the religious material in the clubhouse could, if he or she wanted, go door to door proselytizing, unless and until others complained. If the materials are left anonymously, without more than a single resident being offended, I’m not sure what the landlord could or should do. Remove and destroy the materials?

If the landlord knows who is doing this, perhaps a personal discussion with them might be in order. But telling them to “stop” because a single person is offended seems unnecessary. If there is a place in the clubhouse for storage of reading materials, perhaps removing the literature to that location would work. Certainly, no rule change prohibiting placement of materials in the clubhouse (just because they are religious) is unnecessary. Management cannot be responsible for controlling the placement of written materials in the clubhouse unless it is offensive, inappropriate for minors and guests. This is what free speech is all about. My view would be the same regardless of the denomination of the literature. If I’m incorrect, I’m sure I will hear about it.

 

The MHCO Rental Agreement - Ten Tips and Traps

Phil Querin

 

  1. Make sure that the rental agreement really applies to your situation.  The MHCO rental agreement comes in two flavors: (a) The month-to-month (or “periodic”) rental agreement, and (b) the lease (or fixed term) agreement.  The difference is that the month-to-month agreement runs for the number of days in the current month.  In the absence of termination by landlord or tenant, the periodic tenancy just “rolls over” month to month.  Regardless of which agreement is used, landlords renting or leasing spaces to residents in mobile home parks may not terminate them without cause.  However, a lease for at least two years carries a distinct advantage in that the park documents, i.e. the lease agreement and the park rules, may be automatically updated at the end of each lease term.  While there are certain limitations on the landlord’s right to impose new park documents on the resident, it is clearly much easier to do under a lease than a monthly rental agreement.[2]  Also, landlords using a fixed terms lease agreement must expressly incorporate any rent increase provisions into the written agreement.  The rent increase statute, ORS 90.600, applies only to periodic (e.g. month-to-month) tenancies and not fixed term tenancies.  If the home located upon the space is a recreational vehicle rather than a manufactured home, landlords should not use the standard mobile home space rental agreement.  The reason is that the mobile home park section of the landlord-tenant law does not apply to recreational vehicles.[3]  When renting space for a recreational vehicle, landlords should use an appropriate MHCO RV rental form.

 

  1. Make sure that the rental agreement is signed by all adult tenants who will occupy the space.  This not only financially obligates them under the agreement, but it makes it easier to enforce violations against rules offenders.  Do not permit occupancy of a home until the rental agreement has been fully signed by everyone.  Trying to get signatures after-the-fact can be difficult, if not impossible.

 

  1. Make sure that the Statement of Policy, Rules, and Rental Agreement are given to the resident and properly receipted for.  Occasionally, residents deny receiving one or more of these documents.  However, the signed receipt by the resident is legal evidence of delivery of these documents.  ORS 90.510(9) provides that a signed receipt is a defense to a claim against the landlord for the failure to deliver these documents.

 

  1. Similarly, landlords should make sure that the rights they summarize in the Statement of Policy accurately reflect their rental agreement and rules.  When using the MHCO forms this is not a problem.  It could be, however, when different forms from different sources are used, and the Statement of Policy provides that the resident has (or does not have) certain rights that are inconsistent with the terms found in the rental agreement or rules. The Statement of Policy is not intended to be a binding legal document - it is supposed to merely summarize the resident’s rights and duties that are found in the rental agreement or rules.

 

  1. Landlords should be sure to fully understand their rights and responsibilities given under their rental agreement form.  Not knowing your rights can result in not enforcing violations, which can lead to a waiver of those rights.[4]

 

  1. One of the more important provisions of the rental agreement form is the one which prohibits assignment, subletting or transfer of possession of the agreement or space without the landlord’s prior written consent.  Landlords should make sure that when a resident vacates, leaving a guest or visitor at the space, immediate action is taken to either terminate the tenancy or require that the occupant promptly apply for tenancy by filling out all required documentation.  Do not accept rent from the occupant, the ex-tenant, or on the occupant’s behalf, until the issue has been thoroughly resolved.

 

  1. Be aware that the fire insurance provision in the MHCO form does not apply unless it is specifically checked:  It requires that the resident must maintain a homeowner's policy of insurance that includes coverage for fire in an amount sufficient to replace the home, and permits the landlord to request a current copy of the policy.

 

  1. Similarly, landlords should be sure to have the resident initial those portions of the rental agreement which require them to do so.  There are several such places found in the sections dealing with (a) sale of the home and (b) the resident’s legal obligations under the tenancy.  When these sections are not properly initialed, there remains an argument that it is not binding.  Although such an argument would not likely carry the day, it can be avoided entirely by simply making sure that when the agreement is signed, all internal provisions are properly completed, checked and initialed where appropriate.

 

  1. The landlord’s rights upon a resident’s resale are very important and need to be fully understood by both parties.  One such section of the resale portion of the rental agreement provides that in the event the resident (or their predecessors) has/have made any improvements or alterations to the interior or exterior of the home which did not conform to all applicable local, state and federal building codes or ordinances in existence at the time the work was performed, the landlord has the right to require, as a condition of consent to the sale, that such improvement or alteration be brought up to all applicable local, state and federal building and construction standards in existence at the time of the sale.  When homes have been substantially remodeled, especially where electrical or plumbing systems are involved, this provision may be useful for the landlord to enforce in order to make sure that the proper building codes are followed.

 

  1. Disputes are an inevitable part of being a landlord.  MHCO believes that assigning fault is less important that securing a workable resolution.  Landlords should be aware that Oregon law requires them to have an informal dispute resolution process in their rental agreement.[5]   The MHCO form provides that in the event of any dispute regarding the interpretation or enforcement of the rental agreement or the rules and regulations, either party shall have the right to have the matter handled through the alternative dispute resolution (“ADR”) process set forth in the attached MHCO Addendum, which is incorporated into the agreement.  If a resident request some form of informal dispute resolution, landlords should promptly respond in doing so.
 

[1] ORS 90.245 Provides prohibits the following provisions in a rental agreement: (a) Agreement to waive or forgo rights or remedies under the landlord-tenant law; (b) Agreements authorizing any person to confess judgment on a claim arising out of the rental agreement; or (c) Agreements relieving or limiting a landlord’s liability arising as a result of his or her willful misconduct or negligence or agreements requiring the tenant to indemnify the landlord for that liability or any costs connected therewith.  Any provision prohibited in ORS 90.245 is unenforceable. If a landlord deliberately uses a rental agreement containing provisions known by the landlord to be prohibited and attempts to enforce such provisions, the tenant may recover, in addition to the actual damages, an amount up to three months’ rent.

ORS 90.135 provides that “(1)f the court, as a matter of law, finds (a) A rental agreement or any provision thereof was unconscionable when made, the court may refuse to enforce the agreement, enforce the remainder of the agreement without the unconscionable provision, or limit the application of any unconscionable provision to avoid an unconscionable result****”

[2] See, ORS 90.540, 90.545, and 90.610(3) – (8).

[3] See, ORS 90.505 and 90.100(23).

[4] See, ORS 90.415.

[5] ORS 90.610(2).

Property Management - Tips and Traps

Phil Querin
  1. Make sure that the rental agreement really applies to your situation.  The MHCO rental agreement comes in two flavors: (a) The month-to-month (or “periodic”) rental agreement, and (b) the lease (or fixed term) agreement.  The difference is that the month-to-month agreement runs for 30 days at a time.  In the absence of termination, the periodic tenancy just “rolls over” month to month.  Regardless of which agreement is used, landlords renting or leasing spaces to residents in mobile home parks may generally not terminate them without cause.  However, a lease for at least two years carries a distinct advantage in that the park documents, i.e. the lease agreement and the park rules, may be automatically updated at the end of each lease term.  While there are certain limitations upon the landlord’s right to impose new park documents on the resident, it is clearly much easier to do under a lease than a monthly rental agreement. [2]  Also, landlords using a

fixed term lease agreement must expressly incorporate any rent increase provisions into the written agreement.  The rent increase statute, ORS 90.600, applies only to periodic (e.g. month-to-month) tenancies and not fixed term tenancies.  If the home located upon the space is a recreational vehicle rather than a manufactured home, landlords should not use the standard mobile home space rental agreement.  The reason is that the mobile home park section of the landlord-tenant law does not apply to recreational vehicles.[3]  When renting space for a recreational vehicle, landlords should use an appropriate RV rental form.

 

  1. Make sure that the rental agreement is signed by all adult tenants who will occupy the space.  This not only financially obligates them under the agreement, but it makes it easier to enforce violations against rules offenders.  Do not permit occupancy of a home until the rental agreement has been fully signed by everyone.  Trying to get signatures after-the-fact can be difficult, if not impossible.

 

  1. Make sure that the Statement of Policy, Rules, and Rental Agreement are given to the resident and properly receipted for.  Occasionally, residents deny receiving one or more of these documents.  However, the signed receipt by the resident is legal evidence of delivery of these documents.  ORS 90.510(9) provides that a signed receipt is a defense to a claim against the landlord for nondelivery of these documents.

 

  1. Similarly, landlords should make sure that the rights they summarize in the Statement of Policy accurately reflect their rental agreement and rules.  When using the MHCO forms this is not a problem.  It could be, however, when different forms from different sources are used, and the Statement of Policy provides that the resident has (or does not have) certain rights that are not consistent with those found in the rental agreement or rules. The Statement of Policy is not intended to be a binding legal document.  It is supposed to merely summarize the rights and duties of the resident which are found in the rental agreement or rules.

 

  1. Understand the rights given you under the rental agreement form.  Not knowing your rights can result in not enforcing violations, which can lead to a waiver of those rights.[4]

 

  1. One of the more important provisions of the rental agreement form is the one which prohibits assignment, subletting or transfer of possession of the agreement or space without the landlord’s prior written consent.  Landlords should make sure that when a resident vacates, leaving a guest or visitor at the space, immediate action is taken to either terminate the tenancy or require that the occupant promptly apply for tenancy by filling out all required documentation.  Do not accept rent from the occupant, the ex-tenant, or on the occupant’s behalf, until the issue has been thoroughly resolved.

 

  1. Be aware that the fire insurance provision does not apply unless it is specifically checked:  It requires that the resident must maintain a homeowner's policy of insurance that includes coverage for fire in an amount sufficient to replace the home, and permits the landlord to request a current copy of the policy.

 

  1. Similarly, landlords should be sure to have the resident initial those portions of the rental agreement which require them to do so.  There are several such places found in the sections dealing with (a) sale of the home and (b) the resident’s legal obligations under the tenancy.  When these sections are not properly initialed, there remains an argument that it is not binding.  Although such an argument would not likely carry the day, it can be avoided entirely by simply making sure that when the agreement is signed, all internal provisions are properly completed, checked and initialed where appropriate.

 

  1. The landlord’s rights upon a resident’s resale are very important and need to be fully understood by both parties.  One such section of the resale portion of the rental agreement provides that in the event the resident (or their predecessors) has/have made any improvements or alterations to the interior or exterior of the home which did not conform to all applicable local, state and federal building codes or ordinances in existence at the time the work was performed, the landlord has the right to require, as a condition of consent to the sale, that such improvement or alteration be brought up to all applicable local, state and federal building and construction standards in existence at the time of the sale.  When homes have been substantially remodeled, especially where electrical or plumbing systems are involved, this provision may be useful for the landlord to enforce in order to make sure that the proper building codes are followed.

 

  1. Disputes are an inevitable part of being a landlord.  MHCO believes that assigning fault is less important that securing a workable resolution.  Landlords should be aware that Oregon law requires them to have a informal dispute resolution process in their rental agreement.[5]   The MHCO form provides that in the event of any dispute regarding the interpretation or enforcement of the rental agreement or the rules and regulations, either party shall have the right to have the matter handled through the alternative dispute resolution (“ADR”) process set forth in the attached MHCO Addendum, which is incorporated into the agreement.  If a resident request some form of informal dispute resolution, landlords should promptly respond in doing so.

 

[1] ORS 90.610(2).

 

[1] ORS 90.245 Provides prohibits the following provisions in a rental agreement: (a) Agreement to waive or forgo rights or remedies under the landlord-tenant law; (b) Agreements authorizing any person to confess judgment on a claim arising out of the rental agreement; or (c) Agreements relieving or limiting a landlord’s liability arising as a result of his or her willful misconduct or negligence or agreements requiring the tenant to indemnify the landlord for that liability or any costs connected therewith.  Any provision prohibited in ORS 90.245 is unenforceable. If a landlord deliberately uses a rental agreement containing provisions known by the landlord to be prohibited and attempts to enforce such provisions, the tenant may recover, in addition to the actual damages, an amount up to three months’ rent.

ORS 90.135 provides that “(1)f the court, as a matter of law, finds (a) A rental agreement or any provision thereof was unconscionable when made, the court may refuse to enforce the agreement, enforce the remainder of the agreement without the unconscionable provision, or limit the application of any unconscionable provision to avoid an unconscionable result****”

 

[2] See, ORS 90.540, 90.545, and 90.610(3) – (8).

[3] See, ORS 90.505 and 90.100(23).

[4] See, ORS 90.415.

 

Phil Querin Q&A: Do new Oregon laws on "Section 8" and other sources of income mean that any applicant receiving assistance must be accepted as a resident?

Phil Querin

Answer: HB 2639 will become effective on July 1, 2014. It applies to all housing, whether or not it is manufactured housing inside of a community. The current law provides that a landlord may not refuse to sell, lease or rent any real property to a prospective lessee or tenant based upon the following factors: - Race; - Color; - Religion; - Sex; - Sexual orientation; - National origin; - Marital status; - Familial status (i.e. children under 18 years of age); and - Source of income. Under HB 2639 "source of income" now includes federal rent subsidy payments under Section 8 and any other local, state or federal housing assistance. [However, it does not include income derived from a specific occupation or income derived in an illegal manner.] Your concern is misplaced, but you still must be careful. HB 2639 clarifies that the prohibition against discrimination does not prevent you from refusing to rent or lease real property to a prospective renter/lessee based upon their inability to pay rent. If you have a 33% rule, and consistently apply it, you should be fine. However, what you must do is to include in your 33% calculation, any moneys the applicant is receiving from other state, local, or federal assistance, including Section 8 subsidies (collectively "Government Assistance"). You may not deny an applicant solely because they are receiving Government Assistance, and you must include it in your calculations. Conclusion. It is my opinion that HB 2639 means that going forward, you should include all Government Assistance, as well as other income, when calculating your applicants' ability to pay the space rent. In other words, just because they receive Government Assistance does not mean that you may deny them occupancy. Lastly, even if they qualify under your 33% rule, after including their Government Assistance, if there are other legitimate grounds for denial, such as prior rental history or criminal record, you are still legally entitled to reject them. Please understand that this is not legal advice, and you should verify my interpretation with you own attorney.

Mark Busch RV Article: Rent Increases in RV Parks

Mark L. Busch

 

Question:  We want to raise rent for our RV tenants because we have not raised the rent in over two years.  We know there are new rules, but what are they?

Answer: It is now statewide law that rents cannot be raised at all during the first year of a month-to-month or fixed-term tenancy.  After the first year, you are required to give written notice to RV tenants at least 90 days prior to the effective date of the rent increase.  In addition, fixed-term tenancy rent increases must comply with whatever terms are in the fixed-term rental agreement.  (NOTE:  Week-to-week tenants can have their rent raised at any timewith at least seven days’ written notice prior to the effective date of the increase.)  

The written rent increase notice to all RV tenants must state (1) the amount of the rent increase; (2) the amount of the new rent; and, (3) the date on which the increase becomes effective.  If the notice is mailed to the tenants, you must add at least three additional days to the notice period (not counting the date mailed) to allow for mailing.  The mailing must be by regular, first class mail. Alternatively, the notice may be hand-delivered to tenants, but this means putting it directly in the tenant’s hand – posting the notice is legally ineffective.

Rent control also applies to rent increases for month-to-month and fixed-term RV tenants.  During any 12-month period, rent cannot be increased by more than 7% plus the consumer price index (CPI) from the previous year above the existing rent.  The CPI and maximum rent increase are calculated by the Oregon Department of Administrative Services and published annually in September to set the maximum rent increase amount for the following calendar year.  The maximum rent increase for month-to-month and fixed-term RV tenants in 2020 is 9.9%.  

A landlord who increases rent in violation of the rent control limits can be found liable to a tenant for three months’ rent, plus actual damages suffered by the tenant, plus attorney fees and court costs.  However, the rent control limits do not apply if:  (1) The first certificate of occupancy for the tenant’s RV space was issued less than 15 years from the date of the notice of a rent increase, or (2) the RV park is providing reduced rent to the tenant as part of a federal, state or local program or subsidy.  If one of these exemptions applies, the landlord must state facts supporting the exemption in the rent increase notice to the tenant if the rent increase exceeds the maximum allowable amount.

Finally, be aware that special rules apply within the city limits of Portland. By city ordinance, a rent increase of 10% or more within a rolling 12-month period triggers the tenant’s right to receive a “relocation assistance” payment from the landlord. These payments are based on the size of the rental unit and start at $2,900.  It is questionable whether the ordinance as written applies to RV tenancies.  However, if you ever intend to issue a rent increase of 10% or more within the City of Portland, you should first consult with a knowledgeable attorney to assess the risk of being subject to relocation assistance payments.