Limit on allowable rent increases for older homes and apartments will be 10% in 2025.
Next year, Oregon landlords will be allowed to raise rents by up to 10%.
The Office of Economic Analysis, the state office that sets the maximum allowable rent increase, released its latest determination on Monday.
Oregon’s first-in-the-nation rent control law applies to market-rate houses and apartments at least 15 years old and not newer construction. The law also doesn’t apply to landlords who provide reduced rent through a subsidy or a federal, state or local program.
In 2019, Oregon became the first state to pass a statewide rent control law as supporters sought to rein in rapidly escalating rents. Over the next two years, the cap equaled around 9% to 10% but shot up in 2023 to 14.6% amid severe inflation, reports The Oregonian.
Renters’ rights groups contended the high cap would lead to more evictions. Lawmakers that summer set the cap at 10% (technically, the cap is either 7% plus inflation, or 10% —whichever is lower).
Oregon’s rent-control law — Senate Bill 608 — limits landlords to one rate increase per 12 months and protects tenants who’ve lived in a unit for a year from no-cause evictions. It also prohibits landlords who terminate a month-to-month lease from charging the next tenant more than 7% greater than the previous rent amount. Landlords who violate the law and raise rents in excess of the allowable cap are liable to pay the tenant three months rent plus damages.
Oregon renters are protected from a rent increase for their first year at a residence. After that, month-to-month renters must get 90 days notice before their rent is increased, while weekly renters get seven days.
The law affects around 500,000 households in Oregon. The rent cap limit applies to manufactured homes and floating homes, as well.
Since 2019, California and New York have joined Oregon in passing significant renter protections, according to the Los Angeles Times.
Earlier this month, the Oregon attorney general’s office joined a federal lawsuit against a Texas-based property management software company for alleged monopolistic practices. The suit alleges RealPage Inc. discourages competition through its pricing recommendations to participating landlords.
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