Portland, Oregon is one of the fastest-growing cities in the nation, outpacing most other metropolitan areas in terms of population increase and real estate market size. This has led many investors to look at Portland to grow their portfolios. However, investors should research Oregon real estate and renting laws before diving head first into the market. Portland has strict laws on rent increases and notices, so landlords must understand their limitations before trying to capitalize on the state's growing popularity.
Renters' Rights in Oregon
Oregon is considered a tenant-friendly state because of its various protections for renters. For example, they require repairs to be made within 30 days, or the tenant may deduct maintenance expenses (not to exceed $300) from the following rental check. Renters are also given six days' notice for evictions and 24-hours notice for entry into the property.
However, landlords are also given protections such as the right to charge late fees. There is also a relatively straightforward eviction process for problem tenants.
Oregon's Rent Control
In 2019, Governor Kate Brown made history by putting into law the first-ever statewide rent control act in the U.S. Senate Bill 608 implemented several rent control policies for Oregon, including the following requirements:
- Rent may not be increased within the first year unless the tenant is given a written 90-day notice.
- Rent may not be increased by more than seven percent plus inflation as determined by the consumer price index within a 12-month period.
This cap on annual rent increases encourages landlords to set competitive prices. In addition, it ensures that families are not forced out of their housing due to skyrocketing rental rates across the country.
Exceptions to Rent Control
While this rent control act is applied statewide, certain landlords and units are exempt from the increases until they meet specific criteria. These exemptions include:
- If the first certificate of occupancy for the property was issued less than 15 years from the date of the notice of the rent increase.
- The landlord is providing reduced rent to the tenant as part of a federal, state, or local program or subsidy.
Units that fall under these categories may increase rent at higher rates until they do not meet the same criteria anymore. For example, if a unit is removed from a state subsidy program, they may increase rent to market rates, in which case they must follow the rent control policies the following year.
Average Rent In Oregon
These rent control policies come as a relief to many Oregon tenants, as the state ranks 17th highest in the country for rental rates. The average rental rate in Oregon is $1,053, with fair market rates ranging from $734 to $1,536 for two bedrooms, depending on the location.
The Portland metro area sees the highest average rental rate, at $1,245 per month for a studio and upward of $2,657 per month to rent a house or 4-bedroom apartment.
Price Smarter With RentSpree
While Oregon has tightened its control on rental increases statewide, there is no reason why you can't succeed in this fast-growing real estate market with competitive pricing models. RentSpree offers an all-inclusive platform with a Rent Estimator tool, as well as marketing and tenant screening tools to help you find the best match for your properties. As a result, we can help you grow your portfolio and efficiently manage properties across the U.S., all from the comfort of home.
To learn more about RentSpree's Rent Estimator tool and other features, contact us to schedule a demo.