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Phil Querin Q&A: Six Questions on Sub Metering (current law)

Phil Querin

No. 1 Question.Can you describe the step by step process of implementing water submetering with respect to the tenant notification and billing process?

 

 

Answer.  Under the current law,[1]a landlord may unilaterally amend a rental agreement to convert to submetering by giving the tenant not less than 180 days’ written notice.

 

  1. If the utility or service was included in the rent before the conversion to submeters, the landlord must reduce the tenant’s rent on a pro rata basis upon the landlord’s first billing of the tenant using the submeter method. 
  2. The rent reduction may not be less than an amount reasonably comparable to the amount of the rent previously allocated to the utility or service cost averaged over at least the preceding one year. 
  3. A landlord may not convert billing to a submeter method less than one yearafter giving notice of a rent increase, unless the rent increase is an automatic increase provided for in a fixed term rental agreement entered into one year or more before the conversion. 
  4. Before billing the tenant using the submeter method, the landlord must provide the tenant with written documentation from the utility or service provider showing the landlord’s cost for the utility or service provided to the facility during at least the preceding year.
  5. A utility or service charge to be assessed to a tenant may consist of:
    1. The cost of the utility or service provided to the tenant’s space and under the tenant’s control, as measured by the submeter, at a rate no greater than the average rate billed to the landlord by the utility or service provider, not including any base or service charge;
    2. The cost of any sewer service for wastewater as a percentage of the tenant’s water charge as measured by a submeter, if the utility or service provider charges the landlord for sewer service as a percentage of water provided;
    3. A pro rata portion of the cost of sewer service for storm water and wastewater if the utility or service provider does not charge the landlord for sewer service as a percentage of water provided;
    4. A pro rata portion of costs to provide a utility or service to a common area;
    5. A pro rata portion of any base or service charge billed to the landlord by the utility or service provider, including but not limited to any tax passed through by the provider; and
    6. A pro rata portion of the cost to read water meters and to bill tenants for water if:
      • A third-party service reads the meters and bills tenants for the landlord; and
      • The landlord allows the tenants to inspect the third party’s billing records as provided by ORS 90.538.
  6. A landlord may not bill or collect more money from tenants for utilities or services than the utility or service provider charges the landlord. 
  7. A utility or service charge to be assessed to a tenant under the submetering law may not include any additional charge, including any costs of the landlord, for the installation or maintenance of the utility or service system or any profit for the landlord.      
  8. To assess a tenant for a utility or service charge for any billing period using submetering the landlord must  give the tenant a written notice stating the amount of the utility or service charge that the tenant is to pay the landlord and the due date for making the payment. 
    1. The due date may not be before the date of service of the notice. 
    2. If the rental agreement allows delivery of notice of a utility or service charge by electronic means, for purposes of this subsection, “written notice” includes a communication that is electronically transmitted.
    3. If the landlord includes in the notice a statement of the rent due, the landlord shall separately and clearly state the amount of the rent and the amount of the utility or service charge.

 

No. 2 Question. The tenants were given the 180-day notice of water submetering and space rents haven't been raised in a year.  Do I need to do anything else before I start billing them?

 

AnswerNote that the law provides the one-year period runs from the dateof the last rent increase notice. So that means that your last increase need be no sooner than nine months (i.e. 12 months minus 3 months, or 90 days under ORS 90.600 (Rent Increases)if tenants are on month-to-month tenancies). As for what else you need to do, see answers 4) and 8) to Question No. 1, above.

 

No. 3 Question. My understanding is that I have to now lower space rents (in addition to not raising lot rents for a year) equal to what they have individually paid on average.  How long before I can raise rents again?

 

Answer.  The only limitation is the prohibition on raising the rent is a landlord may not raise the rent for purpose purposes or recouping the capital cost within the first six months after installation of the submeters. If the rent increase was for other reasons, I see no limitations. However, I think the “optics” of increasing rents immediately after reducing them as a part of a submeter conversion would raise questions of bad faith under ORS 90.130(Obligation of Good Faith).

 

No. 4 Question.Can I add the billing fee to the water bill?

 

AnswerI am not sure what you mean by a “billing fee”.  ORS 90.536(2) (Charges for Utilities)provides the landlord may recover:

 

  1. The cost of the utility or service provided to the tenant’s space as measured by the submeter, at a rate no greater than the average rate billed to the landlord by the utility or service provider, not including any base or service charge;
  2. The cost of any sewer service for wastewater as a percentage of the tenant’s water charge as measured by a submeter, if the utility or service provider charges the landlord for sewer service as a percentage of water provided;
  3. A pro rata portion of the cost of sewer service for storm water and wastewater if the utility or service provider does not charge the landlord for sewer service as a percentage of water provided;
  4. A pro rata portion of costs to provide a utility or service to a common area;
  5. A pro rata portion of any base or service charge billed to the landlord by the utility or service provider, including but not limited to any tax passed through by the provider; and
  6.  A pro rata portion of the cost to read water meters and to bill tenants for water if:
    1.  A third-party service reads the meters and bills tenants for the landlord; and
    2.  The landlord allows the tenants to inspect the third party’s billing records as provided by ORS 90.538 (Tenant Inspection of Utility Billing Records)

      (3) Except as provided in subsection (2) of this section, the landlord may not bill or collect more money from tenants for utilities or services than the utility or service provider charges the landlord. A utility or service charge to be assessed to a tenant under this section may not include any additional charge, including any costs of the landlord, for the installation or maintenance of the utility or service system or any profit for the landlord.

 

No. 5 Question.Can I add the cost of the water meters AND the installation labor to the water bill amortized over 5 years in monthly payments?  How exactly does this work?

 

Answer.  The landlord may recover the cost of installing the submeters, including costs to improve or repair existing utility or service system infrastructure necessitated by the installation of the submeters, only as follows:

  1. By raising the rent (as with any capital expense), except the landlord may not raise the rent for this purpose within the first six months after installation of the submeters; or
  2. By imposing a special assessment pursuant to a written special assessment plan adopted unilaterally by the landlord. 
    1. The plan may include only the landlord’s actual costs to be recovered on a pro rata basis from each tenant with payments due no more frequently than monthly over a period of at least 60 months. 
    2. Payments must be assessed as part of the utility or service charge. 
    3. The landlord must give each tenant a copy of the plan at least 90 days before the first payment is due. 
    4. Payments may not be due before the completion of the installation but must begin within six months after completion. 
    5. A new tenant of a space subject to the plan may be required to make payments under the plan. Payments must end when the plan ends. 
    6. The landlord is not required to provide an accounting of plan payments made during or after the end of the plan.

 

 

 

No. 6 Question. Do the tenants need to sign a lease addendum?

 

Answer.  Oregon law allows landlords to “unilaterally amend” the rental agreement to provide for conversion to submetering assuming the rental agreement does not already allow the landlord to do so. 

 

In those cases, tenants should each be given an amendment providing that the landlord may convert from pro-rata or in-rent water charges to submetering. There is no specific period after the unilateral amendment that the landlord must convert. The current MHCO rental and lease agreements already provide for this. However, due to the submetering legislative changes effective on January 1, 2020, they will need to be updated.

 

[1]Note that on January 1, 2020 the submetering laws will change. 

Phil Querin Q&A: Landlord Pass-Throughs of Public Service Charges

Phil Querin

 

Question: As a park owner we pass through the sewer and water charges to our residents. Currently, they are on 5-year leases, all expiring at various times. The leases address our right to pass through utilities. However, fire and police fees have been attached to the water/sewer bills we receive from the city. May we pass those additional fees through, and if so, how much notice must we give to the residents?

 

Answer:  The short answer is Yes. The utilities section of the manufactured housing side of Oregon’s landlord-tenant law is ORS 90.560(4) provides:

 

  • “Public service charge” has the meaning given the term in ORS 90.315 (Utility or service payments).
  • ORS 90.315(1) defines:
    •  “Public services” payments to mean ‘municipal services and the provision of public resources related to the dwelling unit, including street maintenance, transportation improvements, public transit, public safety and parks and open space. (Emphasis added); and
    • “Public service charge” means a charge imposed on a landlord by a utility or service provider, by a utility or service provider on behalf of a local government or directly by a local government. (Note: public service charge” does not include real property taxes, income taxes, business license fees or dwelling inspection fees.)
  • ORS 90.570 provides: “A landlord, upon 60 days’ written notice to a tenant, may unilaterally amend a rental agreement[1]to require a tenant to pay to the landlord, as part of the utility or service charge, a pro rata proportion of any new or increased public service charge billed to the landlord by a utility or service provider or a local government for a public service provided directly or indirectly to the tenant’s dwelling unit or to the facility common area.” (Emphasis added.)
  • ORS 90.568 addresses “pro-rata billing” as follows:
    • “If allowed by a written rental agreement, a landlord using pro rata billing may require a tenant to pay to the landlord a utility or service charge that was billed by a utility or service provider to the landlord for a utility or service provided directly to the tenant’s space or to a common area available to the tenant as part of the tenancy. A landlord may include in pro rata billing a public service charge under ORS 90.570 (Public service charge pro rata apportionment).” (Emphasis added.)
    • A pro rata billing charge for tenants’ spaces must be allocated among them by a method that reasonably apportions the cost among the affected tenants and that is described in the rental agreement.
    • Methods that reasonably apportion the cost among the tenants include, but are not limited to, methods that divide the cost based on:
            • The number of occupied spaces in the facility;
            • The number of tenants or occupants in the dwelling or home compared with the number of tenants or occupants in the facility, if there is a correlation with consumption of the utility or service; or
            • The square footage in each dwelling, home or space compared with the total square footage of occupied dwellings or homes in the facility or the square footage of the facility, if there is a correlation with consumption of the utility or service.
  • A utility or service charge to be assessed to a tenant for a common area must be described in the written rental agreement separately and distinctly from the utility or service charge for the tenant’s space. (Emphasis added.)

 

Conclusion and Caveats. So, yes, to the above question: Prepare a 60-day written Notice of Unilateral Amendment explaining the public service charge and the pro-rata allocation approach. Keep records of these utility charges for tenants to inspect if they want, and when they increase, make sure tenants are notified as soon as possible.  Just like increases in utility rates, they may be passed along – they don’t require additional advance notice.

 

Utility pass-throughs can be very complicated for a variety of reasons. First and foremost, the legislation is created by committees of stakeholders including industry representatives for landlords (park and non-park owners), tenants, utility companies, lenders, and other interested parties. The results can be confusing, especially so because Oregon’s landlord-tenant law contains a “soft” bifurcation between non-MHPs and MHPs. I say “soft” because the MHP side, ORS 90.505+ occasionally depends upon and includes provisions from the non-MHP side, i.e., ORS 90.100 – ORS 90.493. These observations are not to diminished the legislative drafters’ skills – they must work with what they have.

 

Familiarity with MHP utility laws i.e., ORS 90.560 to ORS 90.584 (including various stealth statutes that precede ORS 90.560!) requires time, patience, and care. The above summary responds only to the limited question presented. It does not address the MHP landlord’s responsibility to make sure that all park documents address the current utility rules applicable to their park and are sufficiently explained to incoming tenants. If in doubt, legal counsel should always be consulted. ~ Phil

 

[1] Note: I recommend that each time a landlord seeks to “unilaterally amend” the rental agreement under Oregon law, a documents entitled “Unilateral Amendment” (or similar caption) be delivered to all affected tenants pursuant to ORS 90.155with the same diligence as if they were issuing a rent increase notice. This is really the only way the 60-day notice requirement can be established.  

Phil Querin Q&A: Dealing with Unpaid Rents Today

Phil Querin

 

Question:  We had a resident that we entered into a stipulated judgment agreement with on March 6, 2020.  This was prior to tenants having the ability to claim financial hardship or having the Moratorium in place. They paid 2 payments but stopped paying the terms of the agreement as well as not paying their current rent payments. Are they protected under the financial hardship provisions of the Moratorium? Are we required to send them the Declaration of Financial Hardship? Can we file an Affidavit of Non-compliance due to the resident not complying with the stipulated agreement? 

 

 

 

Answer:  To clarify, when you refer to the “Moratorium” you are referring to HB 4401 which was signed by the Governor on December 23, 2020. It did two things: 

  • Directed the Oregon Housing and Community Services Department to implement a program for direct aid to landlords reimbursing a percentage of outstanding rents; and 
  • Modified the Emergency Period and Grace Period created under HB 4213 for tenants who claim financial hardship. 

Your question about the Hardship Declaration refers to what happens if the tenant delivers it to the landlord:  Afteratenantdeliversacopyofthe Hardship Declarationto the Landlord,theEmergencyPeriod andendoftheGracePeriodcreated in earlier legislation areextendedto June 30,2021. The Hardship Declaration can be filed by the tenant as late as the first appearance date after you file for eviction. After the filing, the landlordmaynot takeorattempttotakeanyactiontointerferewithatenant’spossession, subject to the following exceptions:

  • Evictions for violation of a rental agreement, other than non-payment may continue;
  • Evictions for nonpayment occurring before April 1, 2020 may also continue (Emphasis added);
  •  “Landlord-cause” evictions[1]are allowed after the first year of occupancy. Landlord-cause evictions include:
  • Demolition or converting dwelling unit to non-residential use;
  • Intent to make repairs/renovations to the dwelling unit within a reasonable time, and the building is unsafe/unfit or occupancy or will be unsafe/unfit for occupancy during the repair/renovation period; 
  • Landlord intends for immediate family member to occupy dwelling unit as a primary residence and no comparable units at the same location are available; or 
  • Landlord has accepted an offer to purchase the dwelling unit; purchaser will use unit as a primary residence.[2]

 

Since the rents due to you under the Stipulated Judgment arose before April 1, 2020, I interpret your question to asked whether you can pursue them by filing an Affidavit of Noncompliance under ORS 105.146.  

 

Normally, I might give you a cautious green light. But in this environment, I must recommend against it. First, the court could ignore the above exception under HB 4401. Secondly, and more importantly, the Center for Disease Control and Prevention (“CDC”) has issued a blanket moratorium on nonpayment of rent evictions which arguably supersedes the exception under HB 4401. It was updated today. See details, here.

 

Bottom line, I would not attempt to enforce what we all agree was a legitimate stipulated judgment at the time. HB 4401 is supposed to end June 30, 2021. But until the CDC moratorium ends, I would follow it, regardless of Oregon law. 

 

And even though I do not believe the original CDC moratorium was intended to apply to rents due before September 2020, my brief reading of the federal law, including the update, suggests that if the eviction has not been completed– and yours has not because of the stipulated judgment – the filing of the Affidavit of Noncompliance could be interpreted as an attempt to evict in violation of the current CDC moratorium. 

 

[1]See, ORS 90.427(5)(a)-(d).

[2]Note: This does not include listing or marketing the home for sale. Seller/landlord would have to have a pre-arranged buyer who was willing to buy without inspections, etc., or a tenant who was willing to permit the same with 24-hour notice. Of course, seller/landlord could always make financial arrangements with tenant for concessions.

Revised Form 4 - Mediation Under SB 586 & MHCO FORM 4 (Mediation Policy Addendum)

Senate Bill 586 becomes law on January 1, 2020. It amends several landlord-tenant laws, but for purpose of this article, we will focus on the new mediation laws it enacted.

 

Participation. If any landlord or tenant initiate a request for mediation, participation is mandatory. 

 

Types of Disputes Subject to Mediation. Generally, they relate to landlord or tenant compliance with the rental agreement or with the provisions of  ORS Chapter 90 (Oregon’s Residential Landlord-Tenant Laws). Specifically, they may include the following: 

  • Landlord or tenant conduct within the facility; and
  • The modification of a rule or regulation under ORS90.610.

 

Types of Disputes Excluded From Mediation.Unless all parties agree otherwise, nopartymayinitiatemediationfor:

  • Facility closures consistent with ORS90.645 or 90.671;
  • Facility sales consistent with ORS 90.842 to 90.850;
  • Rent increases consistent with ORS 90.600;
  • Rent payments or amounts owed;
  • Tenant violations alleged in termination notices given under ORS 90.394 (Nonpayment of Rent), and non-curable notices under 90.396 (24-Hour Notices) or 90.630(8) (3-Strike Notices);
  • Unauthorized person in possession under ORS 90.403;
  • Unless initiated by the victim, dispute involving allegations of domestic violence, sexual assault or stalking or a dispute between the victim and the alleged perpetrator; and
  • Disputes arising after the termination of the tenancy, including under ORS 90.425 (Personal Property Abandonment), 90.675 (Manufactured Home Abandonment) or 105.161 (Writs of Execution).

 

Parks Required to Have a Mediation Policy.It must include the following:  

  • The process and format to initiate mediation;
  • The names and contact information, including thephone number and website address, for mediation services available through the referral program provided by the Housing and Community Services Department established under ORS 446.543 (2) and any other no-cost mediation service acceptable to thelandlord;
  • Information explaining the following requirements:
    • It may be initiated by the landlord or tenant contacting the Housing and Community Services Department in their required format;
    • It may not resolve any matters except by the agreement of all parties; [Note: we interpret this to mean that neither party can be compelled to reach agreement on any matter against their consent. However, we do not interpret this to mean that both parties must agree in advance as to which topics will go to mediation (assuming they are not otherwise beyond the scope of the law)].
    • All communications from all parties are held strictly confidential and may not be used in any legal proceedings. 
    • Mediation may be used toresolve:
      • Disputes between the landlord and one or more tenants,initiated by any party; and 
      • Disputes between any two or more tenants, initiated only by the landlord.
    • A party may designate any person, including a non-attorney, to represent their interests, provided that the designee must have the authority to bind that party to any resolution of thedispute;
    • Must comply with any other provisions as the Housing and Community Services Department may require byrule; and
    • Parties must participate in mediation (a) by making a good faith effort to schedule mediation within 30 days after it is initiated, (b) attending and participating in mediation and (c) cooperating with reasonable requests of the mediator.

 

MHCO Form No. 4 (Mediation Policy).  This form summarizes Senate Bill 586, and should be given to all new residents after January 1, 2020.  A landlord may unilaterally amend a rental agreement or facility rules and regulationstoSB 586.  PCQ Comment: MHCO has a form (No. 4) available to its members to make the unilateral amendment for existing residents. If your current policy conflicts with the new law, or you simply want to update it, we suggest sending the unilateral amendment to current residents. For new residents, Form 4 should become a part of their rental agreement, rules, and statement of policy.

 

Pending Claims.After mediation has been initiated and while it is on going,any statute of limitations related to the dispute is suspended (aka “tolled”). Additionally, after the mediation has been initiated, a party may not file a legal action related to the dispute, including an action for possession under ORS105.110 (“FED”).

 

Continuing Duties During Mediation. The tenant must continue paying their rent. However, receipt of such payment is not subject to landlord waiver under ORS 90.412(2) so long as it is refunded (if appropriate) within 10 days following the conclusion ofmediation.

 

Miscellaneous.  SB 586 does not require any party to:

  • Reachanagreementonanyof the issues submitted to mediation;
  • Participate in more than one mediation session or participate for an unreasonable lengthoftimeinasession;or
  • Waive or forgo any rights or remedies or the use of any other available informal dispute resolutionprocess.
  • A mediator in the mandatory mediation must notify the Housing and Community Services Department as to whether the dispute was resolved - but may not provide the department with the contents of any resolution;
  • If a party refuses to participate in good faith in a requested mediation or uses mediation to harass another party, the other party:
    • Has a defense to a claim related to the subject of the dispute for which mediation was sought;and
    • Is entitled to damages of one month’s rent against that party.

 

PCQ Note:Although unrelated to mediation, SB 586 also provides that the Housing and Community Services Department shall award grants to persons to provide legal representation to low-income facility tenants in addressing disputes involving legal matters arising under ORS Chapter 90;

 


 

Statement of Policy - Complying with the Truth in Renting Act

As of July 1, 1992, all manufactured home communities renting space for manufactured dwellings have been required to provide prospective and existing tenants with a Statement of Policy. The applicants must receive their Statement of Policy before signing the rental agreement. Existing tenants who have not previously received a copy of the Statement of Policy and are on month-to-month rental agreements must receive their copy at the time the next 90-day rent increases notice is issued (ORS 90.510(3)(b). All other existing tenants shall receive a copy of the statement of policy upon expiration of their current rental agreement and before signing a new agreement.

While a Statement of Policy is not technically a contract, it is an important document. A tenant or rental applicant who makes their decisions or changes their position in reliance upon the policies set forth in the statement may be entitled to hold the landlord to those written policies. As proof of delivery of the Statement of Policy to tenants or applicants, it is advised to get a signed receipt.

A landlord who intentionally and deliberately fails to provide a Statement of Policy as required by ORS 90.510, or delivers a legally defective one, may be subject to a lawsuit.

The Statement of Policy is required to include the following information in summary form:

  1. The location and approximate size of the space to be rented.
  2. The federal fair housing age classification and present zoning that affect the use of the rented space.
  3. The facility policy regarding rent adjustment and a rent history for the space to be rented. The rent history must, at a minimum, show the rent amounts on January 1 of each of the five preceding calendar years or during the length of the landlord's ownership, leasing or subleasing of the facility, whichever period is shorter.
  4. All personal property, services and facilities to be provided by the landlord.
  5. All installation charges imposed by the landlord and installation fees imposed by government agencies.
  6. The facility policy regarding rental agreement termination including but not limited to closure of the facility.
  7. The facility policy regarding facility sale.
  8. The facility policy regarding informal dispute resolution.
  9. Utilities and services available, the person furnishing them and the person responsible for payment.
  10. If a tenants' association exists for the facility, a one-page summary about the tenants' association that shall be provided to the landlord by the tenants' association and shall be attached to the statement of policy.
  11. Any facility policy regarding the removal of a manufactured dwelling, including a statement that removal may impact the market value of a dwelling. 

Phil Querin Article: SB1069 – New Changes to Email Notifications Under Oregon Landlord-Tenant Law

Editor's Note:  MHCO is working on developing a new form - addendum - to meet the new requirements set forth in SB1069.  We hope to have the new form uploaded to MHCO.ORG later next month.

SB1069 modifies portions of the Oregon Landlord Tenant Law to permit the transmission of certain kinds of written notice by electronic mail (“email”). After a landlord and tenant have entered into a written rental agreement, the parties may sign an addendum permitting the service of written notices by email. This addendum must be signed afterthe original rental agreement and after the tenant has begun occupying the premises.

 

The email addendum must include:

  • The email address from which the landlord will be sending and receiving notices.
  • The email address from which the tenant will be sending and receiving notices.
  • A provision that either party may terminate their agreement to receive email notices or may change the email address from which they send and receive notices, with three-days written notice.
  • The following statement:

THIS IS AN IMPORTANT NOTICE ABOUT YOUR RIGHTS

REGARDING RECEIPT OF WRITTEN NOTICES.

 

By signing this addendum, you agree to receive written notices from your landlord by e-mail. This may include important legal notices, including rent increase and tenancy termination notices. Failure to read or respond to a written notice could result in you losing your housing or being unaware of a change in rent. Signing this addendum is voluntary. Only agree to service of written notices electronically if you check your e-mail regularly.

 

Email Service of Termination Notice.  Even if the parties agree to email service of written notices as outlined above, landlord and tenant must serve any written termination notices by both email and first-class mail.

 

Miscellaneous.

 

ORS 90.160 is amended to specify that notices containing a number of days (e.g. a 10-day notice), counting of the required days begins the day after service of the notice and concludes at 11:59 pm on the last day of the period. However, for notices requiring a certain number of hours, counting of the consecutive hours is to commence immediately upon service. For notices to terminate by 11:59 pm, the day of service is counted from the time of first-class mail and attachment (if allowed under the rental agreement for both landlord and tenant) or first-class mail and email (if allowed under the addendum).

 

Electronic Return of Funds: After the tenancy begins and the tenant has occupied the premises, the landlord and tenant may agree to an addendum allowing the landlord to electronically return a security deposit, prepaid rent, or the appropriate portion of either to the tenant’s preferred bank account or financial institution. The required written accounting for the security deposit and/or prepaid rent may be returned to the tenant via email if the tenant has executed an email notice addendum as described above.

 

If a landlord must make repayment of rent to a tenant to avoid waiver under ORS 90.412 or ORS 90.414, the landlord may make that repayment in person, by first class mail, or electronically if allowed by addendum. Rent repayment going to any other non-tenant payor must be made personally or by first class mail.

 

Nonpayment of Rent. After a nonpayment notice a tenant’s payment will be considered timely if mailed within the notice period, unless the tenant has received their nonpayment notice in person, by first-class mail and attachment, or by first-class mail and email.

The Rental Application Form

The Rental Application form provides the basic information needed to make a decision on accepting the applicant. Under current Oregon Law you will have not more than 7 days from application to accept or decline a prospective resident. Used properly, the rental application and personal interview will prove helpful in countering charges of discrimination in renting spaces. When completed, a rental application should reveal:

  • Financial information
  • Employment information
  • Residence history
  • Household members
  • Social security number(s)
  • Driver license number(s)
  • Ownership or lien-holder of the unit
  • Age, size and condition of the unit
  • Information about motor vehicles
  • Pets
  • Age verification if the community is classified as 55 or older or 62 or older housing
  • Credit references
  • Emergency contacts
  • Authorization to do credit and criminal checks
  • Acknowledgement of receipt of disclosure documents

At the time the prospective tenant returns an application for residency, the manager or landlord should provide the prospective tenant with copies of the Statement of Policy, the rent history of the space, the Rental Agreement and the Rules and Regulations. These documents may have been provided earlier in the application packet. You may provide these documents anytime prior to the signing of the rental/lease agreement (ORS 90.510(3)(a). However, make sure that the receipt for receiving these documents is signed prior to signing the rental agreement.

As mentioned earlier, it is advisable to provide the prospective resident these documents with the application so that the prospective resident can make an informed decision regarding where they would like to apply. Take time to make sure the prospective resident is aware of the content of each of these documents. It will do the community or the resident little good to have the prospective resident move in without taking the time to read and understand the Statement of Policy, the rent history of the space, the Rental Agreement and the Rules and Regulations. Poorly informed residents will likely result in future problems in the community. 

Mark Busch RV Q&A: Squatter in RV Space

Mark L. Busch

 

Question:  A man has set up a tent on one of our park’s RV spaces, with lot of garbage around the space.  He did not sign any agreement – he just showed up one day.  How does the landlord best deal with this situation?

Answer:  Since there is no rental agreement and you (presumably) have not accepted any rent or other payments from him, he is technically a “squatter.”  Under Oregon law, a “squatter” means a person occupying a dwelling unit who is not so entitled under a rental agreement (ORS 90.100 (43)).  The “dwelling unit” in this case is the RV space.  Occupancy by a squatter is not governed by the usual landlord-tenant laws under ORS Chapter 90.

 

This person is first and foremost a trespasser.  As such, you should first try contacting the police or sheriff, explain the situation to them, and ask them to remove this person from the park. You should also ask them to issue a no trespass order so that if he returns, he can be arrested for trespassing.

 

Unfortunately, sometimes law enforcement officers are reluctant to remove squatters even when they have the lawful authority to do so (i.e., if the squatter lies and says he has paid rent to the park).  In that case, you will need to resort to court action.

 

There is a “midnight move-in” statute (ORS 105.115 (1)(c)) that allows RV parks to immediately file an eviction case in court without notice if the owner or possessor of an RV places it on park property without the park’s prior consent.  However, since the statute is very specific about applying only to “recreational vehicles,” this statute would not work in your case where the squatter has only a tent.

 

Fortunately, there is another statute (ORS 105.115 (1)(b)) that also allows a landowner to file an immediate eviction case when a “person in possession . . . is holding possession without any written lease or agreement.”  When you file the eviction case at your county courthouse, ask for and fill out the eviction complaint form for a tenancy notcovered by ORS Chapter 90.  In the section where you must indicate why the park is entitled to possession of the premises, check the “No Notice” box and write:  “ORS 105.115 (1)(b) – Trespasser in possession.” (NOTE:  The filing fee for this kind of case is more than a regular residential eviction case – $281 vs. $88.)  After filing, the case will proceed like any other eviction case.

 

Finally, be aware that in rare instances, a court might decide that an eviction case is not the right kind of  case to file in this situation (although in my opinion, any such ruling would be legally incorrect under this particular fact pattern).  If that were to happen, you would likely need to file an ejectment case, which is similar to an eviction case, but takes longer and would usually require the assistance of an attorney.

 

Phil Querin Q&A: Security Deposits and Prepaid Rent

Phil Querin

Answer. Here is a summary of what you can and cannot do. The statute is found at ORS 90.300.

  • A "security deposit" includes any last month's rent deposit;
  • You must provide the tenant with a receipt for any security deposit the tenant pays;
  • If you sell the park you need to turn over all deposits to the new owner, since he/she then has the responsibility to return the deposit at the end of the tenancy;
  • The rental agreement must identify the deposit(s) and amounts;
  • You may not increase a security deposit during the first year of the tenancy (if it's increased after the first year, the tenant must be given three months to pay);
  • However, if you and the tenant agree to modify the rental agreement, say for a pet, then you may increase the deposit;
  • You may claim from the security deposit only the amount reasonably necessary:
    • To remedy the tenant's defaults in the performance of the rental agreement including, but not limited to, unpaid rent; and
    • To repair damages to the premises caused by the tenant, not including ordinary wear and tear.
  • You are landlord not required to repair damage caused by the tenant in order to claim the deposit for the cost to make the repair. Any labor costs assessed for cleaning or repairs must be based on a reasonable hourly rate. You may charge a reasonable hourly rate for you own time if you do the cleaning or repair work;
  • The type of defaults and damages for which you charge the security deposit include (but are not limited to):
    • Carpet cleaning, other than the use of a common vacuum cleaner, if the cleaning is performed by use of a machine specifically designed for cleaning or shampooing carpets;
    • There are several other carpet cleaning provisions (check the statute);
    • Loss of use of the dwelling unit during the performance of necessary cleaning or repairs for which the tenant is responsible if the cleaning or repairs are performed in a timely manner.
  • You may not require a tenant to pay or forfeit a security deposit or prepaid rent for the tenant's failure to maintain a tenancy for a minimum number of months in a month-to-month tenancy;
  • You must apply any last month's rent deposit to the rent due for the last month of the tenancy:
    • When you or the tenant gives to the other a notice of termination, other than a notice of termination under ORS 90.394 (failure to pay rent);
    • When you and the tenant agree to terminate the tenancy; or
    • When the tenancy terminates in accordance with the provisions of a written rental agreement for a fixed term tenancy.
  • You must account for and refund any portion of a last month's rent deposit;
  • Unless you and the tenant agree otherwise, the tenant may not require you to apply a last month's rent deposit to rent due for any period other than the last month of the tenancy;
  • In order to claim all or part of any prepaid rent or security deposit, within 31 days after the tenancy terminates and the tenant returns possession you must give the tenant a written accounting that states specifically the basis of the claim(s) against the deposit;
  • You must give a separate accounting for security deposits and for prepaid rent;
  • You must return the unclaimed deposit or prepaid rent not later than 31 days after the tenancy terminates and the tenant returns possession to you;
  • The written accounting and refund of unused deposit or prepaid rent to be by personal delivery or by first class mail;
  • For situations in parks where the tenant has abandoned the home (or floating homes in marinas), the 31-day accounting and return period commences on the earliest of:
    • Waiver of the abandoned property process;
    • Removal of the manufactured dwelling (or floating home) from the rented space;
    • Destruction or other disposition of the manufactured dwelling or floating home; or
    • Sale of the manufactured dwelling or floating home.
  • If you fail to comply with the accounting and return provisions of the statute or it is in bad faith (e.g. improper charges, etc.), the tenant may recover the money due in an amount equal to twice the amount:
    • Withheld without a written accounting; or
    • Withheld in bad faith.
  • Claims arising under the security deposit statute do not preclude you or the tenant from recovering other damages under the Landlord Tenant Act.

Phil Querin Q&A: Leaky Water Pipes and Clogged Sewer Lines

Phil Querin

Answer A : First, the MHCO Lease cited above addresses this. Not fixing the leaks, which are their responsibility to do, is a violation. Secondly, ORS 90.740(f) requires that tenants "(u)se electrical, water, storm water drainage and sewage disposal systems in a reasonable manner and maintain the connections to those systems. The tenant is using the water system in an unreasonable manner when they refuse to fix the leaks.

ORS 90.630 (Termination by Landlord) provides, in relevant part, the following:

(1) Except as provided in subsection (4) of this section, the landlord may terminate a rental agreement that is a month-to-month or fixed term tenancy for space for a manufactured dwelling or floating home by giving to the tenant not less than 30 days' notice in writing before the date designated in the notice for termination if the tenant:

(a) Violates a law or ordinance related to the tenant's conduct as a tenant, including but not limited to a material noncompliance with ORS 90.740;

(b) Violates a rule or rental agreement provision related to the tenant's conduct as a tenant and imposed as a condition of occupancy, including but not limited to a material noncompliance with a rental agreement regarding a program of recovery in drug and alcohol free housing... .

ORS 90.630 goes on to explain that you may issue a 30-day written notice of termination, allowing the tenant to fix the leaks within 30 days and avoid termination. If they fail to do so, you may file for eviction. If they cure, but the problem occurs again within six months following the date of your earlier 30-day notice, you may terminate the tenancy within 20 days, and there is no opportunity to cure. MHCO has the necessary forms.

Be sure you have papered your file to support your contention that these are water leaks for which the tenant is responsible, and then specifically describe the violations (there are two of them, one under the Lease, and the other under the statute) in the Notice.

Answer B: This question is same as the prior one and the answer is the same (although the placement of the requirement may not be in the same location, depending on the date of your lease or rental agreement). Just make sure you have the evidence (e.g. plumber statement) before acting, and that you adequately identify the problem and solution in the Notice.