Join our FREE Investing in Real Estate Class Sign Me Up
Select Page

A New Housing Policy In Portland Requires Landlords To Pay Huge Relocation Fee

by | Feb 9, 2017 | Market Reports, PDX News

The city of Portland passed the relocation assistance housing policy on the 2nd of February, and it is effective immediately. This policy requires landlords to pay huge relocation fees if they choose to evict tenants for no cause, or if they increase rent by more than 10% over twelve months and the tenant chooses to move out. These fees are quite large, and can range from $2,900 to $4,500 depending on the number of bedrooms in the home.
The policy is intended to help prevent involuntary displacement and reduce homelessness, especially for lower income families. In Portland, over half of renters are considered cost burdened, meaning they spend over 30% of their income on rent. The policy is intended reduce large rent increases, and keep more renters from losing their homes. The relocation fee will also help them to pay for the costs associated with finding and moving to a new home.

This policy was created and passed with the best of intentions, but it will likely have unintended consequences.

The relocation fee will likely be very effective for large apartment owners that own many units and properties. However, landlords of single family homes are not being taken into consideration. As it is, owners of these properties are not usually making very much money off them. These landlords often would have to raise their rent more than 10% just to bring their rates to market value. The policy would also make it difficult for landlords to move back into their homes if they wanted to.

The unfortunate out come is that the relocation fee will likely reduce the number of rentals in Portland by making it more difficult to be a landlord. An inadequate number of rental properties is already a problem in Portland, and this policy may just make it worse.

Two landlords in Portland have already filed a law suit the city over the new policy. The policy may be in violation of both state and federal law, as rent control is prohibited. It may also violate existing lease agreements and state contract law.

Read more about the policy here.

What do you think about the relocation fee? Let us know in the comments bellow!


Learning Center:

Advice, Opinions, and Market Reports about the Oregon and Washington Real Estate Market

Portland Luxury Condo Market Analysis

  2020 was a rough year with the pandemic, social unrest, and the closure of many restaurants and retail businesses. Nowhere was the impact more acute than in downtown urban areas across the country. Read the full  luxury condo report here to view the pre and post...

How To Buy & Sell at the Same Time

  How to buy a home when you already own a home: Have you been dreaming of your next home, but you’re not sure what to do with your current home? You’ve heard that it’s a sellers market, but what does that mean if you also need to buy?  There are three options to...

How To Retire for Real Estate Agents

Our CEO and Best Selling Author of The Golden Handoff, Nick Krautter, talks with Justin Stoddart on the Think Bigger Real Estate Show to review his revolutionary model that helps real estate agents grow their business while simultaneously helping other agents rapidly...

Start Your Search Today

For a Confidential Meeting contact:

Nick Krautter, CCIM

Principal Broker in Oregon/President

Managing Broker in Washington