Rent rates are increasing dramatically, with some areas seeing increases of 15% a year or more. Imagine if you are a Landlord with one rental home you inherited when your mother passed away. You've had a great tenant in there for six years and didn't pay attention to the market. One day you decide to look at the classfied ads and see that homes comparable to yours are renting for 50% more than what you currently charge!!!
HERE COMES THE STATE
Oregon is never one to pass up the opportunity to squash freedom. In this case, they are dictating Landlords cannot increase rent more than 10% in a year. If you increase rents by more than 10%, you have to pay the Tenant's moving expenses.
WHAT DID YOU SAY?!?
The truth is, most Landlords are small-time investors or people that have inherited homes. They are trying to make a better life for their family and they are doing so legally. The market is not determined by them; it is determined by supply and demand. There is no reason why an investor should have to provide rent far below market value to protect your livelihood.
I don't expect anyone to subsidize my gas bill each month when the price jumps 40% per gallon, nor do I expect them to take a loss. Why should housing be any different?
This will hurt the private investor and it will hurt the Oregon economy. Most investors make money by purchasing properties that are listed below market value and rented below market value. They spruce them up, bump rents up to fair market value, and then start making a profit.
If Oregon limits increases, investors won't be able to make a solid return on their investment and they'll put their money somewhere else. This doesn't help them or the real estate market.
I believe in free markets. I believe Oregon has made a mistake...again.