SB 586 Just Quietly Changed the Exit Game in Oregon. Here’s Why I Think It Matters

[Dan Gandee]

Not sure if you heard but...If you’ve been around Oregon real estate for a while, you know one of the biggest hurdles to selling a tenant-occupied rental has always been the 90-day notice requirement. Especially when trying to sell to an owner-occupant who needs to take possession within 60 days per their loan guidelines. For years, that mismatch has caused all kinds of headaches—delayed closings, post-inspection renegotiations, or worse, deals falling apart altogether. Also, relocation fees added to this mess when trying to negotiate price- terms - tenant responsibility (don't worry fees still exist for most investors).

But now… SB 586 is in.

Starting this September 2025, landlords can terminate a tenancy with just 60 days’ notice if:

1. The buyer is purchasing for owner-occupancy, and
2. The landlord provides 1 month’s rent as relocation assistance (unless you own 4 or fewer rentals statewide—then you’re exempt from paying it).

It might sound like a small tweak, but this 30-day shift actually aligns perfectly with most lender guidelines for move-in, which could make your property far more appealing to the average retail buyer—not just the 1031 crowd or cash-heavy investors.

You’re not stuck waiting 90 days for possession anymore. You can now get to quicker closing timeline, offer vacant possession, and keep your buyer pool wide open. I've been suggesting my clients either wait to close until the tenant is out (best scenario) or shoot for a 45 day close off the rip, and roll the dice on the remaining 15 days in post occupancy if they are willing to risk the eviction if something goes sour. 

Sure, relocation assistance still exists, and yes, this is still Oregon with all the regulatory fun that comes with it. But for anyone trying to 1031 out of their older portfolio pieces, this is a huge win for exit strategy flexibility. 

I know, I know, I know the 45 day identification period doesn't start until the property closes, but removing just 30 days from the front end of the deal allows you to work the second deal sooner, which at times is an off market seller waiting for you to close the first deal (relinquished property). This comes in handy especially when trying to get your identification done while still in contract (which I highly suggest and do many times over). 

So here’s what I’m wondering, and I’d love your take:

• Does this 60-day option actually matter in a market where some buyers still hesitate on tenant-occupied homes?
• Will this give landlords more leverage in pricing when they can appeal to retail buyers again?
• Is the 1-month (or 2-month if you are in Eugene or steep flat fees if you are in PDX) relocation fee worth the tradeoff for a cleaner sale—and will it really speed up closings?
• Or is this just a political bandaid on a fundamentally anti-landlord environment?
  

Curious to hear how you all are thinking about it. Anyone already planning to use this in a Q4 exit?

Thanks fellow investors. 

Dan Gandee

President | Lane County Rental Owners Association (ROA)