Have you ever considered renting out your home in Clackamas, Oregon? Are you ready to get into real estate or just looking for a way to make extra money?
We know that receiving regular monthly rent payments and having passive income from your rental property sounds appealing, but managing a rental home business is more than just those things. It always comes with responsibilities and rights that you have to be familiar with to ensure that your business complies with Oregon landlord-tenant law.
This article will serve as your guide as a first-time landlord in Clackamas, Oregon.
1. Understand Oregon Landlord-Tenant Laws
The first thing you have to do before diving into the world of rental property management is to know the most essential Oregon landlord-tenant laws.
Understanding the law will help you ensure that everything is fair and square for both you and your future tenants. Apart from this, you must draft a solid lease agreement, learn how to take care of your property, and know what to do if any problems occur.
Key Points to Remember: You must have written rental agreements based on Oregon law to establish a foundation for your rules when renting a property.
2. Know the Key Responsibilities of Landlords in Clackamas
As a rental property unit owner, you must follow specific rules in compliance with federal law and avoid potential issues with Oregon tenants in the future.
Complying with Safety Regulations
As an Oregon landlord, you have to make sure that your rental unit is habitable at all times. Some of the things that your rental units must have in working order include:
- Essential appliances (washers and dryers, stoves, refrigerators)
- Electric lighting, wiring and equipment
- Air conditioning equipment, heating, and ventilation
- Hot and cold running water that is safe to drink
- Plumbing facilities
- Doors and windows, roofs, walls, weather and waterproof exterior
Maintenance and Repairs
Aside from keeping your rental property unit habitable, you also should keep your rental home in good shape and be prompt in responding to needed repairs. You must also ensure that the units and common areas are free from fire hazards, pests, rodents, and litter.
Key Points to Remember: You must respond quickly to repair requests since this will help keep your tenants happy and keep you out of legal trouble.
3. Familiarize Yourself with Tenant Rights
Oregon laws protect tenants in many ways. You need to know about these rights so you don't step on anyone's toes or get sued. These rights include federal laws that protect tenants and laws against housing discrimination.
This is where clear communication is essential. Ensure your tenants know their rights and give them written warnings for everything.
Key Points to Remember: You must provide written notice to your tenants before taking any legal action. Make sure that these notices are also clearly stated in your rental agreement.
4. Get to Know Oregon's Security Deposit Law
When it comes to security deposits, Oregon landlords have no limit on how much security deposit they will require from their tenants. You must also return your tenant's security deposit within 31 days after their lease end. However, if there are deductions from it, you must also submit an itemized list of these deductions.
Key Points to Remember: You can choose a month-to-month or fixed lease term. Both of these have pros and cons, so it's better to do your research first to determine which one is best for you.
5. Collecting Rent and Handling Payments
You can choose how to collect rent, but it needs to be clear and constant. For example, if rent is due on the first business day of every month, it's late if it's not turned in by the fourth day. Property owners can also refuse the payment if their tenants pay rent late or less than the amount due.
As a residential landlord in Clackamas, you also have several types of fees that you can charge your tenants:
Alarm Tampering Fee - O.R.S. § 90.302(2)
You can charge your tenants up to $250 if they mess up or remove the smoke detectors, carbon monoxide alarms, and smoke alarms installed in their units.
Late Fee - O.R.S. § 90.260
You can charge late fees to your tenants as long as it won't exceed 5% of their monthly rental amount.
Noncompliance Fee - O.R.S. § 90.302(3)(a)
You can charge at least $50 for the second time that a rental agreement term, written rule, or policy is not followed through.
NSF Fee - O.R.S. § 30.701
You can also charge your tenant Non-sufficient funds fees (NSF fees) as long as they are not more than $35 plus the fee the bank charges the owner for handling the returned check.
Oregon law also lets you take rent already paid as part of the security deposit. When rent is paid ahead of time, the owner has to pay the last month's rent with the part of the security deposit marked "prepaid rent."
Key Points to Remember: Digital payments are one of the best rent collection methods because these can save time and make tracking easier.
6. Laws to Follow When Raising Rent
Giving proper notice is the right way to raise rent. Oregon has strict rules about when and how you can raise rent, so make sure you follow them to avoid tenant disputes.
- If your tenant has a week-by-week rent, you must give them seven days' notice before raising rent.
- With standard leases, you can’t raise the rent during their first year living there. After the first year, you must give your tenants 90 days' notice before increasing the rent.
- You are only allowed to raise the rent once a year.
- Regardless of the tenancy period, you can't raise rent above 7% plus the consumer price index.
Avoid Rookie Mistakes as a First-Time Landlord through Expert Property Management
As a first-time landlord, we know that you are thrilled to earn passive income and receive a regular monthly paycheck from your rental property business.
But aside from the exciting feeling of exploring a new business venture, you might also find the hassle of the day-to-day tasks of handling your first real estate business in Clackamas, Oregon, overwhelming.
Fortunately, you can hire a trusted partner to manage your rental home with Kerr Properties, Inc. We offer full property management services that provide complete solutions to your daily tasks as a first-time landlord. Our property management services include:
- Marketing
- Screening
- Rent Collection
- Maintenance
- Financials
- Evictions
Depending on your business needs, you can even add on additional services such as our Tenant Locating Service and Resident Onboarding.
For more resources and support, check out Kerr Properties. Let’s make your landlord journey a successful one!
