If My Tenant Moves Out, Do I Have To Pay Relocation Fee?

Ask attorney Brad is a regular feature with attorney Bradley S. Kraus and this week the question is about whether a landlord has to pay a relocation fee in Oregon if a tenant moves out. If you have a question for Brad, please feel out the form below.

Hello Brad,

I’ve been a member for years and appreciate your articles. I know Multnomah County has differing rent-increase regulations then Clackamas County, but I do not remember the specifics. I own a single-family home in Clackamas County and want to raise the rent 9 percent. If my tenant decides to move out, am I required to pay them a relocation fee, and if so how much would it be? The house is a three-bedroom and there are three tenants living there. The rent is $2,050 per month, and the tenant’s second one-year lease will expire in June. Thanks for the help! Dan

Hello Dan,

Thanks for reaching out, and for reading the articles. It’s nice to know they’re making it to the intended audience!

As things stand now, Portland is the only jurisdiction with odd rent-increase requirements with respect to additional disclosures/documents. The rest of the state is solely focused on ORS 90.323 for requirements related to rent increases. Hence, our focus should be on that statute.

Under ORS 90.323, you must provide 90 days’ notice, and your rent-increase notice must also contain the amount of the increase, the amount of the new rent, and the date on which the increase becomes effective. With respect to the amounts, the maximum you can increase rent is 7 percent + CPI (2.9 percent), which means your maximum increase is 9.9 percent for next year. Accordingly, your 9 percent increase would be lawful, as long as the other statutory requirements are met.

Keep in mind that you cannot increase rent during a fixed-term lease, so any rent increase you serve cannot become operative until the fixed term is up. If your tenants move out, instead of staying at the increased rent amount, there is no relocation requirement.

Thanks,
Brad

Brad Kraus is a partner at Warren Allen LLP. His primary practice area is landlord/tenant law, but he also assists clients with various litigation matters, probate matters, real estate disputes, and family-law matters. A native of New Ulm, Minnesota, he continues to root for Minnesota sports teams in his free time.

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