Over the last five years, the Portland Oregon rental market has experienced a problem that’s been felt by all renters, the problem of rent increases and too few rentals to choose from.
One of the biggest reasons why we’ve had few rentals to choose from in the PDX area has to do with how housing construction slowed down following the 2008 financial crisis. Now that construction is picking up, it’s looking like rent growth is slowing and this combination of slow rent growth plus more housing inventory could be a win-win combination for renters.
Portland Is Now More Affordable Than Parts of Washington
Renters have been flocking across the river over the last five years because parts of Washington have been more affordable than the PDX area. Thankfully, those people who once left Portland may soon come back because a 2-bedroom unit in the Portland area is now renting for $1,337 per month compared to $1,450 in Forest Grove and $1,680 in Vancouver for similar properties.
Will the affordability last in Portland for long? For the time being, renters ae hopeful because there still are many homeless renters in the PDX area including elderly and college students. It may take a long time to find homes for the scores of homeless men and women of Portland but at least the state if doing something about the housing problem and it appears to be working, at least for now.
Will Rent Control Hurt Oregon Investors in 2020?
Rent control has been official in Oregon now for about six months, the big question is will it hurt or help real estate investors as we get closer to 2020? The answer to this question is no. Rent control won’t affect buildings that are less than 15 years old so if an owner has a newer apartment building or single-family home in their portfolio, it’s not going to affect them at all
What happens to rent control when a unit is vacant?
In most cases, landlords are free to increase rents if tenants leave of their own accord. If, however, a tenant is evicted without cause or their lease isn’t renewed after the first year, the rent increase cap stays in place.
When does the ban on no-because evictions take effect?
For month-to-month renters, it takes effect on the first lease renewal after March 30 2019.
In theory, that means landlords could evict most month-to-month renters the next time their lease is up for renewal. But in many cases, that’s made more difficult because of required eviction notices.
Most people who have lived in the same unit for more than a year under a month-to-month lease are protected because the state requires a 60-day notice. Only 30 days’ notice is required if the renter has lived in the unit for less than a year. (In the city of Portland, 90 days’ notice is required for a no-cause eviction regardless.)
For renters on a year-to-year lease, eviction protections take effect at the next lease renewal after Feb. 28. That means that landlords likely have time to give required lease termination notice before the next lease renewal and may have a window to evict a tenant without cause.
Contact Rent Portland Homes
To learn more about the Portland Oregon rental market or the property management services we can offer you, contact the Rent Portland Homes team by clicking here.