Landlords Must Pay Tenant Moving Expenses!

Real Estate Broker/Owner with American West Realty and Management 12599


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!!!


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.


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.

Comments (12)

Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

The government at work again, reminds me of Cambridge MA, Santa Monica, CA and West Hollywood, CA how to hurt an investor... have no fear help is on its way...Endre

Feb 14, 2017 11:33 PM
Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
Customized Choices for your Real Estate Needs

Hi Nathan,
Yes, Oregon is attempting to limit the market.  Unfortunately, unintended consequences often overcome expected results.  Portland has an issue wth high demand, low inventory and affordable rental housing. We'll see how it turns out.  Hood River is addressing affordable housing by limiting short-term rentals. Interesting to see you blogging about this topic from WY.

Feb 15, 2017 12:23 AM
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

Government is always there to solve a problem that doesn't exist! Thanks, Endre Barath, Jr. 

Feb 15, 2017 04:08 AM
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

Mel Ahrens, MBA, Kelly Right Real Estate I network with a lot of property managers and investors around the country. Seeing what they deal with helps me prepare for it here because bad ideas tend to spread. Plus I grew up in Oregon and still enjoy following her.

Feb 15, 2017 04:10 AM
Kat Palmiotti
406-270-3667,, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Ugh. That would be a tricky situation. My bet is that the landlord would be forced to increase rent 10% per year until the tenant gets annoyed and moves out. Which won't take more than two years. Then the rent can be adjusted accordingly.


Feb 15, 2017 04:12 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Nathan -- so many people feel a landlord has very deep pockets but as you wisely point out, the majority are just another small business.  I can understand the genesis of the decision but a more reasonable approach should have been considered.  

Feb 15, 2017 04:39 AM
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

I think most Landlords would try to do smaller increases, Kat Palmiotti . I think it will scare the investors away because it severely impacts their ability to purchase below market and then bump up to market quickly. 

Feb 15, 2017 07:21 AM
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

You are absolutely correct. I manage a lot of properties and most of them are owned by "accidental" Landlords that inherited a home and didn't know what to do with it. Thanks for commenting, Michael Jacobs 

Feb 15, 2017 07:22 AM
Kathryn .
Rentec Direct - Grants Pass, OR
Rentec Direct

I have to chime in since we are located in Oregon as well, not Portland thankfully.  I think this new law is just going to increase rent so the landlord will have extra reserve funds to pay for these additional expenses. This is not a win-win for tenants or for the property owner.

Apr 18, 2017 01:25 PM
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

Kathryn J. I agree that it's a loss for everyone concerned. This is what happens when regulations are created by people with no knowledge of the business or the market and they don't think through the consequences. By the way, I love Grants Pass!

Apr 18, 2017 09:33 PM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I actually know Investors who are starting to liquidate their properties because they fear ongoing government interference !!!

Jul 25, 2017 06:38 AM
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

Michael J. Perry I've picked up a few that sold off property in Oregon and California to buy out here.

Jul 25, 2017 03:37 PM