Oregon Senate Bill Will Prevent Landlords from Increasing Rentals More Than Once a Year

A bill limiting Oregon landlords from increasing rentals more than once a year is under consideration by lawmakers.

Tenants Must Be Given Three Months Notice

If passed, Senate Bill 722 will ensure tenants are given a three-month notice of increases and that rent hikes do not exceed the legal percentage limit set by Oregon state law, linked to the Consumer Price Index.

Landlords exceeding the legal limit will face penalties, while tenants can sue for three months rent plus additional damages where applicable. Every month of violation will be considered a separate offense.

Landlords Cannot Use AI Software

Landlords will be prohibited from using AI software to set rentals and vacancy rates.

The bill will allow tenants to form committees to address issues at their residences. Landlords must meet with the committee within 10 to 30 days of a request. Meetings will be allowed up to twice annually unless both parties agree otherwise.

The chief sponsor of Bill 722 is Oregon Senator Chris Gorsek, who wants to safeguard tenants from losing the roof over their heads.

It originates from a lawsuit against RealPage, a rental pricing software package, by Oregon and seven other states last year.

The lawsuit claims that RealPage is an intermediary algorithm that exploits sensitive rental data, enriching compliant landlords by tenants paying inflated prices.

A public hearing of Bill 722 will be held at 1 p.m. on Wednesday, 6 March, at the Oregon State Capitol in Salem.

Takeaway

At present, newly built apartments are exempt from rent control for the first 15 years of operation. SB 722 wants to reduce the exemption period from 15 to seven years to allow tenants in newer apartment complexes to receive rent increase protection sooner.