Oregon Implements 10% Rent Increase Cap in 2024 Under New Rent Control Law
Debate Surrounds New 10% Rent Increase Cap and Its Impact on Oregon’s Rental Market
According to corvallisadvocate.com, in 2024, Oregon landlords governed by the Oregon Rent Control Law will be subject to a maximum rent increase cap of 10%, officially enforced by the Department of Administrative Services. This cap has been introduced in response to a recent amendment within the Oregon Rent Control Law, aimed at curbing steep rent hikes during periods of high inflation. Prior to this change, the 2019 version of the Oregon Rent Control Law limited rent increases to 7% plus inflation.
However, due to significant inflation in 2022, some tenants experienced rent increases as high as 14.6%, leading to the implementation of the new 10% cap. It’s important to note that the 10% rent increase cap is a core element of the Oregon Rent Control Law and applies exclusively to buildings that are at least 15 years old. Subsidized housing is exempt from this regulation.
Property managers overseeing newer buildings have the freedom to increase rents without regulatory constraints, with no specific upper limit on rents for new tenants. This approach has sparked varied opinions, with tenant advocates and Senator Wlnsvey Campos initially advocating for stricter limitations within the Oregon Rent Control Law, proposing a cap on rent increases at either 8% or 3% plus inflation, whichever is lower.
Balancing Tenant Protection and Landlord Compliance
In the state of Oregon, where the median rent is approximately $1,820, as reported by the real estate platform Zillow, landlords must adhere to specific regulations outlined in the Oregon Rent Control Law. These regulations include the ability to adjust rent rates only once every 12 months, a prohibition on raising rents during the first year of a tenancy and the requirement to provide tenants with a 90-day written notice before increasing rent.
Furthermore, landlords who violate the prescribed rent increase limits or resort to eviction to raise rents are liable to compensate their tenants with three months’ rent, in addition to covering actual damages incurred. In summary, the Oregon Rent Control Law has established a 10% cap on rent increases for 2024 with specific provisions based on the age of buildings and exceptions for subsidized housing.
While tenant advocates and legislators initially sought more stringent controls, the new legislation aims to strike a balance between safeguarding tenant interests and accommodating landlords in Oregon’s rental landscape, where the median rent is approximately $1,820. Under the Oregon Rent Control Law, landlords must adhere to a defined set of regulations and violations may result in significant financial penalties.