Tenant laws are why I'm leaving Portland

Tenant laws are why I'm leaving Portland

Flipper/Rehabber · Roswell, NM · Member since 2014 · 74 posts · 65 votes

This has been discussed, but I thought I'd share my experience in Portland, Oregon with my rental property and why I'm trying to get out as quickly as possible to get my money working for me. Just need to vent!

I live out of state, so when my tenants began not paying due to Covid, I asked my property manager if he could help. I was essentially told there was nothing they could do (and he told me I was "lucky" to have received rent in May).  Can't ask them why they aren't paying, can't verify employment, can't do much.

Several weeks later I asked him to follow up and was told "there's not much point.  If they wanted to pay, they would be paying". I asked if they'd adopted a process for contacting tenants who weren't paying and was told no.  Then he went on to inform me that new legislation prevents them for contacting tenants to ask about payments or to suggest payment plans.  

So, I have to wait them out until the 6 month moratorium ends, at which point I need to wait another 6 months before I can demand rent. 

Well fortunately for me (or so I thought), they are on a month-to-month lease.  Not so fast...in Portland, month to month means that they can give me 30 days notice but I have to give them 90 days as well as pay them 4,500 for relocation.  And forget about keeping the deposit as a form of rent collection...This is brutal.

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Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
6y

Unfortunately, I think eviction moratorium are getting to be politicians it-cost-me-nothing-to-show-I-care-about-you law since they can count how many tenant vs landlord votes there are.  Portland City Council steps more to the left and further down the education scale with each election.

I can't honestly tell someone to buy in Portland proper unless it is a SCREAMING deal.  On the plus side, the residential market is still pretty strong - Assuming you can get your tenant out.

However, I think the market outside Portland in OR is still pretty good for prospect of income growth.

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  • Los Angeles · Member since 2020 · 88 posts · 36 votes
    6y

    @Aaron Hollingshead thank you sharing your thoughts and experience with us. I’m happy to chat real estate and here to listen. Portland Oregon is one of the markets I started researching and I started with the housing laws there and quickly noticed that they are in favor more towards the tenants. How long have you had your property in PDX?

  • Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y

    Unfortunately, I think eviction moratorium are getting to be politicians it-cost-me-nothing-to-show-I-care-about-you law since they can count how many tenant vs landlord votes there are.  Portland City Council steps more to the left and further down the education scale with each election.

    I can't honestly tell someone to buy in Portland proper unless it is a SCREAMING deal.  On the plus side, the residential market is still pretty strong - Assuming you can get your tenant out.

    However, I think the market outside Portland in OR is still pretty good for prospect of income growth.

  • Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    6y

    Lets see if in 10 or 12 years has Portland become a model city that other municipalities want to emulate, or if it will have fallen into poverty and destitution--looking for endless federal government handouts to solve its decay, and other problems.

    I remember a city in the past that was much much greater than Portland, that quickly fell into destitution from lawlessness and STUPID decisions, that to this day is consider by many a "No-Go Zone". Some call it Detroit.

    I assume those in power in Portland are wishing for a Detroit Jr situation (for what ever reason), vs making their town a model American city where everyone wants to move to and live.

    To me, this seems like a much better way to run a city: https://www.youtube.com/watch?v=T-C8DwL2ovQ

    Who wouldn't want to live (or invest) in the city in the video.

    Just my 2 cents.

  • Investor · Tampa, FL · Member since 2017 · 589 posts · 251 votes
    6y

    Are they violating any other lease clauses? Maybe that could be a way to get them out. Some people suggest cash for keys or reminding them that this doesn't mean that rent is not owed and the balance will only continue to rise. 

  • Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y
    Originally posted by @Scott Mac:

    Lets see if in 10 or 12 years has Portland become a model city that other municipalities want to emulate, or if it will have fallen into poverty and destitution--looking for endless federal government handouts to solve its decay, and other problems.

    Careful, Portland saw Austin as a big competitor since we're both going after the same hipster vibe.

    However, thinking Austin is getting up on us.

  • New to Real Estate · Portland, OR · Member since 2018 · 11 posts · 6 votes
    6y

    @Aaron Hollingshead 

    That's nuts. I'm not familiar with the tenant laws here myself, so it's crazy to hear that you can't even ask tenants whether or not they plan on paying their rent. Granted, times are hard for everyone, but having some communication would be ideal.

    Also, is it true that you must pay $$ for tenants to relocate, once being evicted?

    All this is useful for me since I am looking into purchasing a house hack in the near future. Currently learning as much as possible and researching options in Portland.

  • Contractor · Chicago, IL · Member since 2017 · 102 posts · 181 votes
    6y

    @Aaron Hollingshead

    I read a story about a landlord in Portland in a similar position that is being accused of "leading" masked protesters onto his street and essentially asking them to burn the place down bc he saw no alternative to his fate.

    For what its worth, you're not alone.

  • Flipper/Rehabber · Roswell, NM · Member since 2014 · 74 posts · 65 votes
    6y

    @Meryl McElwain - Ha!  Wow, what a wild story!  I guess the last resort for me is I just pay the damn money and wait 90 days.  There are worse things in the world I suppose.  That would definitely make me lean towards chasing down my money whenever it's legal to the extent of the law though.  

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    Read this: https://www.streetroots.org/news/2020/07/23/faq-what-you-need-know-if-you-cannot-pay-your-rent-or-mortgage

    I don't believe your PM is being honest or that they're doing all they can. Regardless, this eviction moratorium is just one of the many problems with Portland. Even if you resolved this issue, there are other reasons to move on.

    Sell while the market is hot and the city is still standing.

    The DIY Landlord Book4.7248 Reviews
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    Why do you think its a Portland problem? There is a national moratorium on evictions. 

  • Member since 2020 · 11 posts · 22 votes
    6y

    @Aaron Hollingshead well there was a cost to the 200% appreciation you’ve experienced in the last 10 years.

    You might consider investing locally in NM, a red state with no nonsense politicians. Cash flow might be better coupled with landlord friendly laws, but don’t expect your properties to even come close to the appreciation you’ve experienced in the tenant friendly west coast.

    It’s a cost of doing business. Dealing with crazy tenant laws, but get rewarded with insane returns (factoring in everything)

  • Brad HammondBusiness Member
    Real Estate Agent · Portland, OR · Member since 2016 · 1k+ posts · 605 votes
    6y

    @Benjamin Kirkpatrick, in Portland city limits you can not evict a tenant without cause once they have been there over a year.  If after a year you do, you must pay relocation fees of around $4k.  HOWEVER, since you will be house hacking and living in the home, you would be exempt from a lot of the laws from Portland.  My best advice is to keep leases at 50 weeks and get not renew if they are an awesome tenant.  

  • New to Real Estate · Portland, OR · Member since 2018 · 11 posts · 6 votes
    6y

    @Brad Hammond I see. In your opinion, how feasible is house-hacking in the Portland market for a first-time homebuyer/wannabe investor?

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Brad Hammond:

    @Benjamin Kirkpatrick, in Portland city limits you can not evict a tenant without cause once they have been there over a year.  If after a year you do, you must pay relocation fees of around $4k.  HOWEVER, since you will be house hacking and living in the home, you would be exempt from a lot of the laws from Portland.  My best advice is to keep leases at 50 weeks and get not renew if they are an awesome tenant.

    its 4500.00  i just paid it yesterday.. and the house was a mess.. but sense of relief that did not have to do anything but stroke a check and then clean up after them.. house will be lightly remodeled and sold to owner occ..  

  • Investor · NorCal · Member since 2015 · 281 posts · 240 votes
    6y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Brad Hammond:

    @Benjamin Kirkpatrick, in Portland city limits you can not evict a tenant without cause once they have been there over a year.  If after a year you do, you must pay relocation fees of around $4k.  HOWEVER, since you will be house hacking and living in the home, you would be exempt from a lot of the laws from Portland.  My best advice is to keep leases at 50 weeks and get not renew if they are an awesome tenant.

    its 4500.00  i just paid it yesterday.. and the house was a mess.. but sense of relief that did not have to do anything but stroke a check and then clean up after them.. house will be lightly remodeled and sold to owner occ..  

    These tenant-friendly laws will drive out the majority of Landlords, just like you mentioned “will sell to owner occupant”.

    In return, with very few landlords and very few rentals left in the future, rents will shoot up sky high. 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Jim Spatzenfeld:
    Originally posted by @Jay Hinrichs:
    Originally posted by @Brad Hammond:

    @Benjamin Kirkpatrick, in Portland city limits you can not evict a tenant without cause once they have been there over a year.  If after a year you do, you must pay relocation fees of around $4k.  HOWEVER, since you will be house hacking and living in the home, you would be exempt from a lot of the laws from Portland.  My best advice is to keep leases at 50 weeks and get not renew if they are an awesome tenant.

    its 4500.00  i just paid it yesterday.. and the house was a mess.. but sense of relief that did not have to do anything but stroke a check and then clean up after them.. house will be lightly remodeled and sold to owner occ..  

    These tenant-friendly laws will drive out the majority of Landlords, just like you mentioned “will sell to owner occupant”.

    In return, with very few landlords and very few rentals left in the future, rents will shoot up sky high. 

     Mf dominates the rental inventory 

  • Investor · NorCal · Member since 2015 · 281 posts · 240 votes
    6y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Jim Spatzenfeld:
    Originally posted by @Jay Hinrichs:
    Originally posted by @Brad Hammond:

    @Benjamin Kirkpatrick, in Portland city limits you can not evict a tenant without cause once they have been there over a year.  If after a year you do, you must pay relocation fees of around $4k.  HOWEVER, since you will be house hacking and living in the home, you would be exempt from a lot of the laws from Portland.  My best advice is to keep leases at 50 weeks and get not renew if they are an awesome tenant.

    its 4500.00  i just paid it yesterday.. and the house was a mess.. but sense of relief that did not have to do anything but stroke a check and then clean up after them.. house will be lightly remodeled and sold to owner occ..  

    These tenant-friendly laws will drive out the majority of Landlords, just like you mentioned “will sell to owner occupant”.

    In return, with very few landlords and very few rentals left in the future, rents will shoot up sky high. 

     Mf dominates the rental inventory 

    Apartment buildings will be split up and sold as condos.

    Nobody in his right mind will develop new apartment buildings. 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Jim Spatzenfeld:
    Originally posted by @Jay Hinrichs:
    Originally posted by @Jim Spatzenfeld:
    Originally posted by @Jay Hinrichs:
    Originally posted by @Brad Hammond:

    @Benjamin Kirkpatrick, in Portland city limits you can not evict a tenant without cause once they have been there over a year.  If after a year you do, you must pay relocation fees of around $4k.  HOWEVER, since you will be house hacking and living in the home, you would be exempt from a lot of the laws from Portland.  My best advice is to keep leases at 50 weeks and get not renew if they are an awesome tenant.

    its 4500.00  i just paid it yesterday.. and the house was a mess.. but sense of relief that did not have to do anything but stroke a check and then clean up after them.. house will be lightly remodeled and sold to owner occ..  

    These tenant-friendly laws will drive out the majority of Landlords, just like you mentioned “will sell to owner occupant”.

    In return, with very few landlords and very few rentals left in the future, rents will shoot up sky high. 

     Mf dominates the rental inventory 

    Apartment buildings will be split up and sold as condos.

    Nobody in his right mind will develop new apartment buildings. 

    WEll a lot of crazy developers in Portlandia there are thousands of units under construction right now and planned. Once all the SFR landlords say no more they will fill them right UP :)

  • Rental Property Investor · Member since 2020 · 172 posts · 110 votes
    6y

    Why not file a lawsuit against the tenants? I'm always wondering when you're unable to evict tenants what would be the harm in taking them to small claims court?

  • Investor · Saint Paul, MN · Member since 2015 · 663 posts · 512 votes
    6y

    @Aaron Hollingshead

    Guess I don’t know why would you wanted to invest in Portland? I’m in a very liberal area Minneapolis, but luckily I have very good tenants who are reasonable and pay the rent on time. I do not agree with the city Council of Minneapolis this far I’m doing OK. 

  • Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y
    Originally posted by @Brad Hammond:

    @Benjamin Kirkpatrick, in Portland city limits you can not evict a tenant without cause once they have been there over a year.  If after a year you do, you must pay relocation fees of around $4k. 

    Not quite - There are exceptions outlined.  However, you need to send PHB a letter saying why and then get an Acknowledgment back.

    Stuff like tenant in the same duplex, ADU if the owner lives onsite, change of use from market-rate to affordable, inhabitable due to neither landlord or tenant fault and other stuff.

    Better option is to watch the guy like a hawk and give him a FOR CAUSE eviction.

    YOu can find rule on the PHB website.

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y
    Originally posted by @Russell Brazil:

    Why do you think its a Portland problem? There is a national moratorium on evictions. 

     
    That was done as of August 24th. As you know some states have more strict moratoriums in place that are staying in effect. 
    https://www.cnet.com/personal-finance/no-more-federal-eviction-protection-with-september-rent-just-days-away/

  • Rental Property Investor · Gresham, OR · Member since 2018 · 36 posts · 19 votes
    6y

    @Aaron Hollingshead

    I am from the Portland, Oregon are and I refuse to even look at deals to hold in the area. New tenant laws have made things extremely difficult to rent. I have been able to find good deals within 80 miles of Portland. Take a look at the surrounding towns. You might be pleasantly surprised.

    Portland has definitely changed a lot in the last 10 years. Things were difficult before COVID. Your venting is definitely how a lot of Portland investors feel at this time.

  • New to Real Estate · Portland, OR · Member since 2018 · 11 posts · 6 votes
    6y

    @Matthew Powell Yikes. Doesn't sound too appealing. What makes people stay here then, you think? Surely, there must be deals to had one way or another.

    What kind of change do you foresee in the future of Portland/surrounding areas? Economically, financially, etc. 

    I ask because I've only been here a year, and I see apartment buildings popping up left and right. Must be enough demand if they're being built like mad. 

    Also, just my opinion, but Portland really is an interesting place. Lovely neighborhoods and quaint boutique shops and whatnot, but tons of dumpster-diving and filth everywhere. I don't know if I could see being here long term, or raising a family here, when you have lovely folks rummaging through your trash bins and abandoning shopping carts across town. 

    Oh, and you cannot forget the wonderful art (AKA graffiti) displayed upon nearly every building, street sign, and telephone pole. :-)

  • Los Angeles, CA · Member since 2019 · 36 posts · 13 votes
    6y

    @Aaron Hollingshead I’m shocked that you can’t even ask. I kinda sorta understand not evicting based on the current situation and high unemployment, but not even being able to ask for when payments will happen? Seems like the State legislators didn’t understand the repercussions on owners.

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