5.1 Oregon Rent Control & Landlord-Tenant Law
Key Takeaways
- Senate Bill 608 (2019) made Oregon the first state with statewide rent control and statewide just-cause termination protections
- The annual rent-increase cap is the LESSER of 10% or 7% plus regional CPI; SB 611 (2023) added the firm 10% ceiling, and the 2026 maximum is 9.5%
- Buildings issued a certificate of occupancy less than 15 years ago are exempt from the rent cap, as are most subsidized units regulated separately
- After the first 12 months of occupancy a landlord generally needs a 'just cause' (tenant- or landlord-based) to terminate a month-to-month tenancy
- Oregon's Residential Landlord and Tenant Act is ORS Chapter 90, which sets deposit handling, 24-hour entry notice, and notice-period rules
SB 608: Statewide Rent Control and Just Cause
In 2019 Oregon passed Senate Bill 608, becoming the first state in the nation with statewide rent control and statewide "just-cause" eviction protections. Two separate rules came out of SB 608, and the exam tests them as distinct ideas:
- A cap on annual rent increases, and
- A just-cause requirement to terminate most tenancies after the first year.
The rent-increase cap (with the 2023 update)
The original SB 608 cap was 7% plus the regional Consumer Price Index (CPI) per 12-month period. In 2023, Senate Bill 611 added a hard ceiling: the maximum increase is now the lesser of 10% or (7% + CPI). Because CPI has been high, the 10% ceiling is what binds in practice, and the Oregon Department of Administrative Services publishes the figure each year.
| Year/element | Rule |
|---|---|
| Original SB 608 cap | 7% + CPI |
| SB 611 (2023) ceiling | Never more than 10% |
| Current formula | Lesser of 10% or 7% + CPI |
| 2026 published maximum | 9.5% |
| Frequency | Once per 12-month period |
Exam trap: A prep book that still says "7% + CPI with no cap" is stale. Since 2023 the increase can never exceed 10%, and the agency publishes the exact yearly number (9.5% for 2026).
What is exempt from the cap
The cap does not apply to:
- New construction — any building whose first certificate of occupancy issued less than 15 years ago (a rolling 15-year window, not a fixed date).
- Units regulated by a recorded affordability agreement or subsidized program with its own rent rules.
Worked example: An apartment building first occupied in 2014 is only 12 years old in 2026, so it is still exempt from the cap this year and will remain exempt until it passes the 15-year mark in 2029. A 1990s building is well over 15 years old and is subject to the 9.5% maximum. The test wants you to compare the certificate-of-occupancy age to the 15-year line.
Just-Cause Termination
After a tenant has occupied a unit for the first 12 months, a landlord generally cannot terminate a month-to-month tenancy without a qualifying cause, divided into two buckets:
| Tenant-based cause | Landlord-based (no-fault) cause |
|---|---|
| Nonpayment of rent | Landlord intends to demolish or substantially renovate |
| Material lease violation | Owner or family member will move in |
| Outrageous conduct | Landlord has accepted an offer to sell to a buyer who will occupy |
| Repeated late payments | Unit will be permanently withdrawn from the rental market |
For landlord-based (no-fault) terminations, the landlord must typically give 90 days' written notice and, for landlords who own more than four dwelling units, pay the tenant one month's rent as relocation assistance. During the first 12 months, by contrast, a landlord may still terminate with a 30-day no-cause notice — the just-cause regime kicks in only after that first year.
ORS Chapter 90 — The Residential Landlord and Tenant Act
Day-to-day landlord-tenant rules live in ORS Chapter 90, the Oregon Residential Landlord and Tenant Act (ORLTA). A real estate licensee who manages property must know its core mechanics.
Security deposits
| Topic | Oregon rule |
|---|---|
| Statutory dollar cap | No statutory maximum on the deposit amount |
| Handling | Held for the tenant; a property manager places it in the security-deposit clients' trust account |
| Accounting after move-out | Return the deposit, or a written accounting of deductions, within 31 days of tenancy termination |
| Last month's rent | If collected, it is the tenant's money until applied; track separately |
Exam trap: Oregon does not cap the deposit at "one month's rent" the way some states do. The tested number is the 31-day post-move-out accounting deadline.
Entry by the landlord
Except in an emergency, a landlord (or the manager) must give the tenant at least 24 hours' actual notice before entering, and may enter only at reasonable times for a legitimate purpose (repairs, inspection, showing). Repeated entry to harass the tenant is itself a violation.
Rent-increase notice timing
| Tenancy type | Notice before a rent increase |
|---|---|
| Month-to-month, after first year | 90 days' written notice |
| Week-to-week | 7 days' written notice |
| Fixed-term lease | No mid-term increase unless the lease allows it |
No rent increase at all is allowed during the first year of a month-to-month tenancy.
Termination notice periods (no-cause, where still allowed)
| Situation | Notice |
|---|---|
| Month-to-month, within first 12 months (no cause) | 30 days |
| Week-to-week | 10 days |
| Nonpayment of rent | 72-hour or 144-hour notice, per timing |
How a Licensee Uses This Material
A broker advising an investor must be able to estimate allowable rent growth, flag whether a building is inside or outside the 15-year exemption, and explain that flipping to an owner-occupant buyer is a recognized just-cause ground. A property manager must run the 31-day deposit clock, give 24-hour entry notice, and use the 90-day rent-increase notice for established tenants.
Worked example: A manager wants to raise rent 11% on a tenant in a 30-year-old building. That is not allowed — the 2026 ceiling is 9.5% for a building past the 15-year mark. The manager caps the increase at 9.5% and serves it with 90 days' notice. If instead the building were only 10 years old, no cap applies, but the 90-day notice rule still governs the timing once the tenant is past the first year.
Key principle: Two clocks and two ceilings drive most exam items here — the 15-year exemption line, the lesser-of-10%-or-7%+CPI cap, the 90-day rent-increase notice, and the 31-day deposit accounting deadline. Memorize all four.
Under Oregon's current statewide rent-control law, what is the maximum annual rent increase a landlord may impose on a tenant in a 30-year-old apartment building?
Which residential building is EXEMPT from Oregon's rent-increase cap?
Within how many days after a tenancy ends must an Oregon landlord return the security deposit or provide a written accounting of deductions?