Overview
Leases are the cornerstone of a successful landlord-tenant relationship, providing a legal framework for both parties to enter a harmonious agreement.
In Oregon, residential lease documents—including their structure, nature, and contents—are regulated by Oregon landlord tenant laws. For this reason, it’s imperative to understand the intricacies of the law before constructing a lease.
This guide will walk you through the crucial components of a lease agreement Oregon considers compliant, ensuring you’re well-equipped to make informed decisions. And to make your journey easier, we’re offering a free Oregon lease template for download!
An Oregon lease is a legally binding document that outlines the terms and conditions governing the rental of a residential property within the state. This lease must adhere to Oregon’s landlord-tenant laws, providing a clear framework for both landlords and tenants to follow and fostering a secure and transparent rental environment.
The following components should be included in all Oregon rental lease agreements. Note that these components are primarily associated with residential lease agreements — An Oregon commercial lease agreement will necessarily have different requirements.
Lease Term
This section specifies the lease’s start and end dates, establishing the duration of the rental agreement.
Rent
Here, you’ll find details regarding the rent rate, due date, and the status of rent control.
Oregon was the first state to implement statewide rent control. Currently, landlords in the state cannot raise rent by more than 7% each year, plus inflation (Senate Bill 608). If you are looking for the current maximum rent increase accounting for inflation, you can find it at the Oregon Office of Economic Analysis. The current maximum increase for 2024 is 10.0%.
Late Fees
The penalties for missing rent payments should be clearly stated in the lease, as should any exceptions. In Oregon, there are limits on the amount and type of late fees landlords can charge in the state (ORS § 90.260(2)). Late fees must either be:
A reasonable flat amount charged once per rental period
A reasonable amount charged on a per-day basis less than 6% of the flat fee, or
5% of the monthly rent, charged once for each five-day period that rent is late
Additionally, Oregon enforces a four-day mandatory grace period. This means landlords cannot charge tenants any late fees until at least four days have passed since the original rent due date (ORS § 90.260(1)(a)).
Be sure that your late fee policy is clearly described in your Oregon lease agreement so that tenants know exactly what will happen if they are late on rent.
Security Deposit
This section of the lease includes details about the security deposit, including its amount, where it will be stored, and how/when it will be returned.
There is no maximum or limit for security deposits in Oregon. However, Oregon does have a law that requires landlords to return security deposits to tenants (minus any deductions) within 31 days after the lease ends (ORS § 90.300(12)).
Every Oregon rental lease agreement should carefully explain the security deposit policy, including the amount of the deposit, how/when it will be returned, and the conditions under which funds may be withheld from it.
Required Disclosures
This section encompasses crucial required disclosures, which are information that must be disclosed to the tenant in the lease before they agree to rent the property. Required disclosures must be included in a lease agreement Oregon considers compliant, or else provided to tenants in a separate written notice.
In Oregon, the required disclosures are:
- Lead-based paint – Landlords in all 50 states must disclose lead-based paint hazards in rental agreements for most properties built before 1978.
- Security deposit receipt – Landlords in Oregon must provide tenants with receipts for security deposits.
- Pending legal actions – If there are any pending legal actions that apply to a building with less than four units, the landlord must disclose this in writing before signing the lease.
- Shared utilities – If utility services are shared between tenants, the landlord must disclose this. Utility charges for common areas must be explained in the lease agreement.
- Recycling – If the city or county has a multifamily recycling service, landlords with more than five units must notify tenants of the opportunity to recycle.
- Smoking policy – Landlords in Oregon are required to disclose the premises’ smoking policy in all residential rental agreements.
- Carbon monoxide alarms – All Oregon landlords must provide new tenants with instructions for testing carbon monoxide alarms.
- Smoke alarms and detectors – All Oregon landlords must provide new tenants with written instructions for testing smoke alarms and detectors.
- Flood zones – If an Oregon rental unit is located within a 100-year flood plain, the landlord must disclose this to tenants in the lease agreement.
- Renter’s insurance — Landlords in Oregon must provide a written statement to tenants disclosing any requirement to purchase renter’s insurance.
- Payments for homeowner assessments – If a landlord in Oregon has a requirement for homeowner assessments, they must disclose the amount of the fee in the lease agreement.
Landlord Right to Entry
In Oregon, there are specific laws governing when a landlord can enter a rental property. Landlords in this state must provide at least 24 hours’ notice before entering a property, except when the tenant has submitted a prior request for maintenance (ORS § 90.322(1)(f)). For all other reasons (e.g., inspections, alterations, showings, etc.), the landlord must get prior consent before entering and do so at a reasonable time.
During emergencies, the landlord can also enter without providing advanced notice—but they should inform the tenant within 24 hours afterwards. Be sure to include the landlord’s right of entry in all Oregon rental agreements.
Repairs & Maintenance
The lease outlines how and when tenants should submit maintenance requests and clarifies the process for addressing necessary repairs. Every Oregon residential lease agreement should specify which maintenance responsibilities are the landlord’s and which are the tenant’s.
Lease Termination/Renewal Procedures
This section details the procedures for early lease termination and breaking the lease, including eviction processes. Specifically, the lease should clearly state how many days’ notice the tenant needs to provide the landlord to announce their intent to either renew or terminate the lease.
An Oregon residential lease agreement should also clearly describe what happens if the tenant breaks the lease. Before filing for eviction in Oregon, landlords must send eviction notices of specified lengths: A 13- or 10-day notice to pay or quit for nonpayment, a 30-day notice to cure or quit for lease violations, or a 24-hour notice to quit for severe violations, pet violations, or drug-/alcohol-free housing violations. These notice periods should be specified to the tenant so that both parties are clear on what will happen if the tenant fails to uphold the lease agreement.
Joint and Severability Clause
This clause is for leases with multiple roommates and explains the legal consequences if one party fails to fulfill their obligations. It ensures that the entire lease isn’t invalidated due to one roommate’s breach.
Signatures
Both the landlord and tenant will sign the lease either on paper or electronically, ensuring a secure and convenient process.
Oregon Lease Agreement Download
To make your leasing journey simpler, we offer a free, downloadable Oregon lease agreement. This template is tailored to meet the specific requirements of Oregon state law, making it a valuable tool for landlords and tenants.
Conclusion
Understanding the nuances of an Oregon residential lease agreement is vital for a smooth and legal tenancy. We hope this guide has provided you with a clear understanding of the components of an Oregon lease. To get started on the right foot, download our free Oregon lease template and ensure a transparent, lawful, and satisfying rental experience.
