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Selling with tenants in place

Back in 2019 the state of Oregon passed Senate Bill 608. That removed a landlord's right to use "No-cause Notices to Vacate".  That means, you cannot give tenants notice to move out in order to list your property for sale.  The law did not remove a landlord's ability to terminate tenancies "For Cause".  If tenant(s) are in violation of the rental agreement, landlords may still issue notices to terminate tenancy in those instances. 

Under the law, there are four legal reasons a landlord can give tenants a notice to vacate. The fourth reason listed below relates to sale of properties:

     1. Demolition or conversion of the unit to non-residential use 

     2. Repair/renovation that renders the unit unsafe/unfit for occupancy 

     3. Landlord or immediate family member to move-in 

     4. Sale to a person who intends in good faith to occupy the home as a primary residence (if dwelling unit is sold separately from another dwelling unit. i.e. this only applies to single family homes. This does not apply to duplexes, triplexes, fourplexes, or other multi-family dwellings.)


If using any of the four reasons listed above to vacate a tenant, then a landlord must provide tenant with 90-day notice and relocation expenses equal to one month’s rent (landlords with four or fewer units are exempt from the relocation expense. Also note: the relocation fee guidelines are different in the City of Portland and there is no exemption based on number of units owned, and the fee schedule varies from $2,900 to $4,500 based on unit size).


If you feel that your property would be more attractive to prospective buyers when it is vacant, keep in mind that nothing in the law that prohibits a "cash for keys agreement". This is a mutual agreement where the landlord offers the tenants compensation, in exchange for the tenants giving a 30-day Notice to Vacate to the landlord and moving out on the agreed upon date.  As the landlord you need to pay the money up front. JW Homes Team strongly recommends having a landlord tenant attorney help draft this agreement. 


Reach out to us if you are in need of a recommendation.

NOTE: This is for information only. We recommend that you check with your Local City, County and State for the latest Rules and Regulations.

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