Oregon Room Rental Agreement
When someone has unused space in their home, it can present a perfect opportunity to rent it out and earn extra money. As such, landlords can create a room rental agreement in Oregon, allowing a tenant to live in the extra room in exchange for monthly rent.
Whether the landlord wants extra income to help pay off the mortgage early or is looking to get started in real estate, room rentals are a great option. Keep reading to learn how room rentals work, including required disclosures, lease terms, and more.
Oregon Room Rental Laws
Oregon has several landlord-tenant laws that should appear in every lease agreement, regardless of the lease length. Below are some of the terms covered in a standard Oregon room rental agreement:
- Disclosures
- Security deposits
- Late fees
- Grace periods
- Pet rent and deposits
- Termination and notice requirements
- Rent increases
- And much more
Types of Room Rental Agreements
An Oregon room rental agreement is essential when a landlord decides to rent out a room in their home to a tenant. The contract can take several forms, including:
Verbal agreement: A verbal agreement allows a landlord and tenant to set lease terms through spoken communication, without a written document. While many use them for room rentals in Oregon, verbal agreements create issues because the terms are often unclear and difficult to enforce.
Fixed-term lease: A fixed-term lease creates a rental agreement for a set period, typically a minimum of 6 months. These leases offer less flexibility but more stability, giving landlords confidence that the tenant will occupy the property for the full term (unless either party terminates the lease early). Tenants also benefit from this stability, as landlords cannot end the lease early or raise the rent during the term.
Month-to-month lease: In a month-to-month lease, the landlord and tenant enter a short-term rental agreement. The lease renews monthly, and the tenant is considered a tenant at will, with the ability to renew or end the lease as they see fit.
No single rental contract works best for every Oregon landlord, as several factors influence the decision. The landlord-tenant relationship, Oregon laws, and how long the tenant plans to stay all play a role in determining the most fitting agreement.
Oregon Lease Agreement
Learn MoreTurboTenant's Oregon lease agreement forms the backbone of a solid landlord-tenant relationship.
Oregon Rental Application
Learn MoreStop fiddling with paper applications; send a digital Oregon rental application form instead.
Oregon Landlord-Tenant Law: 2024 Overview of Rights
Learn MoreCheck out everything you need to know about Oregon landlord-tenant law here.
Required Landlord Disclosures (9)
1. Lead paint hazards: Federal law requires landlords to provide tenants with a lead-based paint disclosure for any property built before 1978.
2. Landlord’s details: Landlords and designated agents must provide their names and contact details in writing at the start of the lease (ORS 90.305).
3. Carbon monoxide: The landlord must inform the tenant about carbon monoxide alarms if the home has a carbon monoxide source, such as a gas fireplace. The landlord must also ensure the alarms are in good working condition. The landlord should inform the tenant of their responsibility to maintain the alarms (ORS 90.317).
4. Utilities: When the landlord and tenant share utilities, such as heating and water, the landlord must inform the tenant how the costs are calculated for each party, according to Oregon law (ORS 90.315).
5. Flood susceptibility: Landlords in Oregon must provide tenants with written notice if the property is in a flood plain, before lease signing (ORS 90.228).
6. Foreclosure and other legal issues: Landlords must give tenants written notice about any foreclosure or default that could affect their tenancy (ORS 90.310).
7. Entitled to recycling: In some regions of Oregon, landlords must provide tenants with a recycling can, arrange for regular recycling pickup, and give tenants annual information about recycling (ORS 90.318).
8. Smoke alarms: At minimum, landlords must install one smoke alarm in a rental property. Tenants are responsible for keeping it in working condition, and the landlord must inform the tenant of this responsibility (ORS 479.270).
9. Smoking guidelines: The landlord must provide the tenant with a written copy of the smoking policy, including any designated smoking areas, if applicable (ORS 90.220).
Security Deposits
Maximum security deposit: Landlords in Oregon can charge a security deposit for a room rental agreement, but the state law does not set a specific limit. Some cities, like Portland, may have guidelines, with the maximum amount depending on several factors (Portland City Code 30.01.087).
Security deposit receipt: Landlords in Oregon must provide tenants with a security deposit receipt that states the amount paid (ORS 90.300).
Deduction tracking: Landlords must give tenants an itemized list of deductions and receipts within 31 days after the tenancy ends (ORS 90.300).
Security deposit return: Landlords have 31 days to return the security deposit to the tenant, after making any deductions (ORS 90.300).
Pet deposits: A landlord may charge a pet deposit to cover damage caused by pets beyond normal wear and tear. However, landlords cannot charge pet deposits for companion or service animals (ORS 90.300).
Rent Payment Regulations
Late rent fees: Landlords may charge late fees when tenants are behind on rent starting on day 5 (after 4 days overdue). The fee must be reasonable and may increase daily but cannot exceed 6% of the total late fee. A flat fee must not exceed 5% of the monthly rent (ORS 90.260).
Right to withhold rent: To withhold rent payments in Oregon, the tenant must notify the landlord about a health or safety issue in the home. The tenant must give the landlord enough time to make the repair, but if it remains unresolved for too long, the tenant may withhold rent (ORS 90.365).
Grace period: Oregon law provides a 4-day grace period for late rent payments (ORS 90.260).
Pet rent: Landlords in Oregon can charge a reasonable rate for pet rent, although state law does not specify a limit. State law prohibits pet rent for service or companion animals (ORS 90.300).
Rent Payment Increase Rules
Rent payment increase frequency: Landlords cannot raise rent during the lease term. After the first year, they may increase rent by giving 90 days of written notice, and they may only raise rent once per calendar year (ORS 90.323).
Rent payment increase maximum: A landlord may not increase rent by more than 7% plus the Consumer Price Index (CPI) (ORS 90.323).
Rent control/stabilization: Oregon’s Senate Bill 608 established rent stabilization, limiting rent increases to 7% plus the Consumer Price Index, as noted above (Senate Bill 608).
Room Rental Agreement Breaches
Failure to pay: The landlord may issue a 144-hour Notice to Pay or Quit, starting 5 days after the rent is due. If the rent is 8 or more days late, the landlord can give a 72-hour Notice to Pay or Quit starting on day 8 (ORS 90.394).
Lease violations: A lease violation may result in a 14- to 30-day notice to end the rental agreement, depending on the nature of the violation, unless the tenant resolves the issue within that timeframe (ORS 90.392).
Lease abandonment: If a tenant abandons the lease mid-term, they must continue paying rent until the landlord signs a new rental agreement with another tenant (ORS 90.410).
Self-help evictions: In Oregon, it is illegal for landlords to carry out self-evictions, including actions like turning off water or electricity (ORS 90.375).
Ending a Room Rental Agreement
When a landlord and tenant enter into a room rental agreement in Oregon, they both must follow several terms. One of these covers what’s required to break a lease early. Most room rental agreements are fixed-term, meaning the tenant agrees to stay for a set period. Month-to-month agreements are also an option.
Regardless of the lease type, there are a few key requirements to be aware of when ending a room rental agreement.
Month-to-month: Per Oregon law, either the landlord or tenant may terminate a month-to-month rental agreement with 30 days of notice during the first year of tenancy. After the first year, the landlord must give 90 days of notice and have a valid cause for doing so (ORS 90.427).
Fixed-term: Tenants can’t end fixed-term leases early without breaking the lease, which may require them to keep paying rent until the landlord finds a new tenant. After the lease ends, it usually converts to a month-to-month agreement, which requires 30 days of notice to terminate in the first year or 90 days of notice after one year, but only if there’s a valid reason (ORS 90.427).
Room abandonment: Tenants must give notice if they plan to be away from the property for more than 7 days. If the landlord considers the room abandoned, the tenant may still be responsible for rent. However, the landlord must try to find a new tenant. Once a new lease begins, the tenant’s remaining financial obligations end (ORS 90.410).
Tenant’s right to terminate: A tenant may break a lease early without legal or financial consequences only if, and only if) there is evidence of landlord harassment, sexual assault, domestic violence, stalking, military orders, or a serious health or safety violation (ORS 90.320, ORS 90.453, ORS 90.322, Servicemembers Civil Relief Act). Landlords can end a lease early (without consequence) if the tenant violates a lease term and fails to correct it within the allowed time (ORS 90.427).
Landlord Room Access Laws
Immediate access: An emergency is the only valid reason for a landlord to enter a property without prior notice. In that case, the landlord must provide the tenant with written notice within 24 hours explaining the reason for entry (ORS 90.322).
Landlord harassment: Landlord harassment may occur if a landlord enters the property multiple times without cause, fails to provide proper notice, or enters at unreasonable hours. In such cases, the tenant may be entitled to early lease termination or damages (ORS 90.322).
Advance notice: Landlords must give a standard 24-hour notice before entering the property, except in emergencies (ORS 90.322).
Agreement Renewal/Termination
Required renewals: In Oregon, room rental agreements typically convert to month-to-month agreements at the end of a fixed-term lease, unless stated otherwise. If a landlord does not want the tenancy to renew automatically, they must specify in the lease that they require a new rental contract and that the lease will not automatically convert to month-to-month (ORS 90.427).
Required notice: Landlords must give 30 days of notice to terminate a fixed-term lease of less than one year in most Oregon cities. Portland and Milwaukie require 90 days of notice. After the first year, a landlord can terminate a rental contract with 90 days of notice and sufficient cause (ORS 90.427).
Month-to-month considerations: For a month-to-month room rental agreement, Oregon requires both landlords and tenants to give 30 days of notice to terminate. If the tenant has lived in the unit for more than a year, the landlord must provide 90 days of notice (ORS 90.427).
Room Rental Agreement Oregon FAQs
What to include in an Oregon room rental agreement?
A room rental agreement should include required disclosures and various lease terms, such as late payment protocols, that comply with Oregon landlord-tenant laws. Landlords can find everything they need to create a lease with TurboTenant. Our convenient templates make it easy to draft an Oregon room rental agreement quickly.
How do I legally rent out a room?
The first step for a landlord is to create a room rental agreement. In Oregon, this can be a fixed-term lease or a month-to-month rental agreement, though fixed-term leases are more common.
How to make an Oregon room rental agreement?
TurboTenant makes it easy to create Oregon room rental agreements online. Visit our site and use our state-specific lease templates. The lease is available in a printable PDF format, making it simple to provide a written copy to tenants.