Buying a Duplex, owner occupied and I need to increase rent

7 Replies

I am buying a duplex and we close on April 13th. We are moving in on one side and inheriting the tenant on the other. The tenant who is moving out has 90 days, which is till June to do so. Both tenants are on a M2M lease. One tenant is paying 800 and the other is paying 850. I did some research on increasing rent, but it leaves me a little confused. 

When they sign MY new lease I don't mind staying on the m2m lease, but I do need to increase rent. I would like to increase to 950-975. I would like to do higher but I know that would not be smart. 1250 is my goal rent. I dont plan to increase rent on the tenant moving out either. That will just cause unnecessary issues. When I looked up m2m rent increase in Oregon, they say you cant increase rent until after the 1 year, and then it gets fuzzy after that on raising rents. 

From what I understand, I can raise rent when they sign my new lease and then I need to wait a year. Then I can only increase once a year at a 9.9% increase. Am I understanding this correctly?

Hey @Robyn Imperatrice , it depends on the county and city you are in but you have it right.  You can only raise the rent 9.9% in a 12 month period.  However, once the tenant moves out you can charge whatever you want for the next tenant.  There are more nuances as far as the amount of notice you need to give them.  Let me know if you want to talk about it in more detail. 

Thank you Brad. I would like to get a little bit more specific. I will be living in Albany so Linn county. I will look further into Linn county as far as raising rent. But to start am allowed to start rent at 950 with the new signed lease, then increase by 9.9%(or what ever the increase percent is at that time)? or;

Do I have to start at the current rent which is 800/850 then add 9.9% increase, increasing rent to $872 or 934?


I live in Keizer and am in the same boat. Inherited tenants under market rent and on M2M leases. County does not matter unless you live in Portland. 

Here is how it would look for you. You get a new lease that reflects your terms and ownership. But the person still technically has lived at the property and is not a new tenant. So you may only raise the rent the 9.9% Max. But you also need to check with the previous owner and see when they last raised rent. Because you can only raise it once in a 12 month time frame. So, if the pervious owner raised rent in January of this year, you would have to wait until January of 2022 to raise rent. You also still need to give them a 90 Days notice. 

The only way to get higher than a 9.9% increase is when the tenants leave and the unit goes vacant. They rent control does not apply and there is not limit to how much you can increase. 

If you have more questions feel free to PM me and we can talk. Would love to network with other investors in the Valley and congrats on your new home!

Here is where you can find the Oregon Law about rent increases.

Cody, thank you for sharing. I was thinking that was the way it was supposed to be but I just needed to double check. 

Jordan thank you for clarifying that it is 9.2% increase. I saw both 9.9 and 9.2, so thanks for clearing that up. My house unfortunately is older than 15 years. You both have been extremely helpful. I will patiently wait and do things the right way. Thanks for the help.