SB 390 = Big changes in 2016

SB 390 = Big changes in 2016

The passage of SB 390 this fall is making some big changes in Oregon Landlord Tenant Law. Landlord and tenant advocacy groups are both claiming victory. However, those in the trenches managing property clearly see that there was no victory for either side, and at this point we are just trading blows. Some of the changes going into effect are:   

• The ability to pass through some municipal bills directly to tenants. There are some restrictions for this and Empire will be taking advantage of this new law.

• New standards on how tenant payments are to be applied.

• New standards for requiring all bedrooms to have a secondary emergency exit. This is not an issue for most of us. However, many older homes who were previously grandfathered in may be open to a new interpretation. We are waiting on some clarification on this issue.

• Empire has been requiring our tenants to carry a renters insurance policy for several years. Now we can require the tenants to add Empire as an interested party to the policy. This will help with Empire enforcing the issuance.   

As a rule Empire does not support the passage of any new changes to the current landlord tenant law as we have seen through the years that even the laws that benefit landlords create friction and conflict between landlords and tenants. Sadly, politicians thrive on this conflict as their source of importance is keeping the two sides in perpetual war.

Evictions and How to Avoid Them

In the property management world, evictions are the end of a long and expensive journey. A journey that has probably ended for the landlord with lost rents, renovation expenses, and a feeling of hopelessness. For the tenant it means possible homelessness and ruined credit and rental references. In the end there are no winners, but only losers on both sides. This circumstance can and should  be avoided by property managers and landlords, and with a little vigilance it mostly can be.

Firstly, as a property manager you have a fiduciary responsibility to attain the best tenants you possibly can. This involves setting strict but reasonable screening guidelines, and then sticking to them even if it involves an extended vacancy. Good tenants shop for the best value in housing. If your rental is not renting the issue probably resides in the price or condition of the property. Do not lower your guidelines to get a property rented. This course of action will lead to your financial ruin. Good tenants pay rent on time, take good care of the property, and spend a little time cultivating a working business relationship with their landlord or management company.

Secondly, once you have approved your applicant your job is not over. As with most customers, your tenants need your interest in their continued purchase. Tenants want to see if you truly care about the condition and maintenance of the property. When they call with a maintenance request try to take care of the issue within 24hrs. This is the support after the sale that every customer/tenant needs. This requires your effort, but the reward, in our experience, is well worth it. Tenants will see that you are serious about maintaining the condition of the property and will generally follow suit.

Lastly, do not let your tenants fall behind in the rent. This is the biggest mistake landlords make. When a tenant falls behind in the rent for an extended period of time generally they have lost a source of revenue, and their condition is not going to change any time soon. Do not be Mr. Niceguy and allow them to stay in the property and accrue delinquent rent and late payments. The tenant only ends up putting off what they need to do and digs themselves into a deeper hole they cannot dig out of. The only recourse at that point is resorting to the law. Early on in the process if the property manager takes action the tenants still have options available to them. Eviction is generally an indication that the landlord/manager was not being diligent in their work and let the situation get out of hand.

Although we perform eviction services, to date Empire Property Management LLC has not had to evict even one of our own tenants. If you, or anyone you know, need help resolving a tenant related issue we would be glad to help.

Empire Property Management, LLC
541-913-8451
541-935-0346