Search

Phil Querin Q&A: Accepting Rent From Non-Tenant Occupants

Phil Querin

Answer: One issue is accepting rent from a person occupying the space after the legal tenant has moved out. This can occur, for example, where someone is residing at the space under a Temporary Occupancy Agreement, but the approved tenant, no longer resides there. Alternatively, the person could be a lawful visitor, who has overstayed their permitted time, and the legal resident has left. ORS 90.403 deals with this:

 

90.403 Taking possession of premises from unauthorized possessor. (1) If an unauthorized person is in possession of the premises, after at least 24 hours' written notice specifying the cause and the date and time by which the person must vacate, a landlord may take possession as provided in ORS 105.105 to 105.168 if:

  • The tenant has vacated the premises;
  • The rental agreement with the tenant prohibited subleasing or allowing another person to occupy the premises without the written permission of the landlord; and
  • The landlord has not knowingly accepted rent from the person in possession of the premises.
  • Note that service of a notice to terminate does not create a right of tenancy for the person in possession of the premises.

It can be fatal to a landlord's effort to remove the non-tenant if rent has been accepted from them. On the other hand, if the rent is in the form of a check or money order, and signed by the legal tenant, it makes no difference who delivers it.

 

But if the person is not the lawful tenant, I believe you have a right to refuse to accept the rental payment if it is in cash, or a check or money order in that person's name. I'm not concerned that there is no rule on it, since the law is clear (at least to me) that if the person is not your "Tenant" - i.e. the one in possession under a rental or lease agreement - you do not have to accept a rent payment from them.

 

 

The other issue arises when a lawful resident resides in the space, but they have an occupant who has not been approved as a co-tenant or a temporary occupant. If you are going to accept them as a temporary occupancy, get them on a Temporary Occupancy Agreement. You can do a criminal background check, but not a financial one, since they are there not to subsidize the tenant's rent (as might be the case if they were a co-tenant). Accordingly, do not accept rent in any form from temporary occupant, unless it is drawn on the tenant's bank account and the check bears that out.

 

 

As to unlawful occupants who are staying at the space, but have not been approved as a tenant and you know of their occupancy, insist that they apply for tenancy, and make sure they do not stay beyond the time allowed for visitors under the park rules, until they have been approved.

 

 

Note, the issue of waiver is not just a question of accepting a check from the unapproved person. Acceptance of rent - even from the lawful tenant - when you know he or she is housing an unapproved person, can also result in waiver of your right to thereafter demand they vacate.

 

 

ORS 90.412 provides in part:

 

 

(2) Except as otherwise provided in this section, a landlord waives the right to terminate a rental agreement for a particular violation of the rental agreement or of law if the landlord:

 

(a) During three or more separate rental periods, accepts rent with knowledge of the violation by the tenant; or

(b) Accepts performance by a tenant that varies from the terms of the rental agreement.

(3) A landlord has not accepted rent for purposes of subsection (2) of this section if:

(a) Within 10 days after receipt of the rent payment, the landlord refunds the rent; or

(b) The rent payment is made in the form of a check that is dishonored.

(4)A landlord does not waive the right to terminate a rental agreement for a violation under any of the following circumstances:

(a) The landlord and tenant agree otherwise after the violation has occurred.

(b) The violation concerns the tenant's conduct and, following the violation but prior to acceptance of rent for three rental periods or performance as described in subsection (2) of this section, the landlord gives a written warning notice to the tenant regarding the violation that:

(A) Describes specifically the conduct that constitutes the violation, either as a separate and distinct violation, a series or group of violations or a continuous or ongoing violation;

(B) States that the tenant is required to discontinue the conduct or correct the violation; and

(C) States that a reoccurrence of the conduct that constitutes a violation may result in a termination of the tenancy pursuant to ORS 90.392 (Termination of rental agreement by landlord for cause), 90.398 (Termination of rental agreement for drug or alcohol violations),

 

So the take-away here is that you do not want to accept rent from anyone, even the tenant, when you know they are violating the rules, such as keeping an unapproved occupant at the space or having an unapproved pet. If you accept rent from the lawful tenant under these circumstances, return it within ten days after receipt - if the check has been cashed, write a new check back to the tenant with an explanation, and demand that the unpermitted person apply for tenancy.

 

 

Under the statute, waiver will not occur for the first two events of accepting the rent without returning is within ten days. The third or subsequent time can constitute a waiver. Waiver does not occur if the rent is properly returned within the ten day period, no matter the number of times it's tendered.

 

 

As for taking a rent check from the unapproved person, I don't recommend doing so unless the check is drawn on the tenant's own account. If it's a joint account with the unapproved person, don't accept it. The same holds true of any other form of payment (e.g. cash or money order) unless there is clear evidence that it came from the lawful tenant. Just remember, though, that acceptance of rent from the lawful tenant - in any form - can count as a waiver under ORS 90.412 if you know they have an unlawful occupant at the space.

 

Phil Querin Q&A: Partial Rent Payments

Phil Querin

Question: What are the rules that apply if the landlord agrees to accept rent in an amount less than required under the Rental Agreement?

 

Answer: This was covered in a December 2016 MHCO Article. The major change in the law since then was due to the elimination of 72-hour notices of nonpayment of rent. Now a 10-day notice must be issued. (MHCO does not have a form for 144-hour notices, but it too has been eliminated. It has been replaced by a 13-day notice.)  For partial payments, MHCO members do have access to "MHCO Form 12: Receipt and Agreement for Partial Payment of Rent" available on-line at MHCO.ORG.

 

Withour a legal agreement to make specific and timely installment payments, tenants are required to tender to the landlord the full amount of rent owed under the rental or lease agreement no later than the date provided. Without a proper written agreement, the landlord may refuse to accept the tenant’s tender of rent that is for less than the full amount of rent due.[1]

 

If landlord is willing to accept partial payments, doing so must strictly follow ORS 90.417. If so, the acceptance of a partial payment will not constitute a waiver under ORS 90.412 (Waiver of termination of tenancy) or the landlord’s right to terminate the tenancy for nonpayment of the balance of the rent owed. Notwithstanding any acceptance of a partial payment of rent, the tenant continues to owe the landlord the unpaid balance of the rent.

 

However, the agreement must be in writing. It must specify the amount and date of the required payments. If the tenant fails to pay the balance due as agreed, landlord may issue a 10-day notice of termination under ORS 90.394 (Termination of tenancy for failure to pay rent). The written agreement should provide that the landlord may terminate the rental agreement and take possession under the eviction statutes (ORS 105.105  to 105.168) without serving a new 10-day notice under ORS 90.394 if the tenant fails to pay the balance of the rent by the agreed-upon time.

 

However, there are two important rules against giving the landlord rights under the written agreement that are more favorable than already permitted under the law. Specifically:

  • It cannot permit the landlord to issue a termination under ORS 90.394 any sooner than would have been permitted had no rent been accepted; and
  • The notice of termination must permit the tenant to cure it by paying the balance within the time period already allowed under ORS 90.394  (or by any date to which the parties agree, whichever is later.

 

Note that if the landlord already accepted a partial payment of rent after giving a nonpayment of rent termination notice under ORS 90.394, and then entered into a written agreement for installment payments, doing so will not constitute a waiver.

 

As always, before entering into a written agreement, landlords should consult with their legal counsel should they have any ques

 

[1]  Similarly, the landlord is not legally required to accept the tender of a late payment even if it is for the correct amount. However, if the rules or rental agreement provide for a late payment fee, I do not believe the landlord should refuse a late payment tender within the late-fee period. Can the landlord insist on payment of the fee with the tender of the late payment? My concern about doing so is the argument that the “fee” is not “rent.” I would not recommend refusing to accept any late payment unless there was a collateral issue involved, such as waiver – in which legal counsel should be consulted. If rent is tendered after issuance of the 10-day notice but before an eviction is filed, I would still advise my client to accept it. My belief is that once the court learns that rent has been tendered, albeit late, the judge would not likely grant an eviction. My belief is that the “3-strikes” rule under ORS 90.630(10) should suffice for habitual late payers. In all other case, granting some latitude (with collection of a late fee under the rental agreement of rules) should suffice in most cases. Some attorneys may disagree. Legal counsel should always be consulted if there are any questions.

Phil Querin Q&A - Background Check for Guests Staying Over 14 Days

Phil Querin

Answer. I believe that what you want to do is possible; you want to verify with your own legal counsel.

 

But let me suggest that you asked the question in the wrong way. Rather than asking whether the law allows this, you should ask whether the law disallows it. In other words, in most cases, when it comes to landlord-tenant legal rights and duties, Chapter 90 sets a "floor" below which you cannot go.[1] So although the law does not address this specific issue, that does not mean you cannot do institute such a policy, so long as it does not violate other portions of the chapter.

 

 

What laws might apply? Here are the ones that come to mind:

 

 

90.130 Obligation of good faith. Every duty under this chapter and every act which must be performed as a condition precedent to the exercise of a right or remedy under this chapter imposes an obligation of good faith in its performance or enforcement. [Formerly 91.730]

 

 

90.135 Unconscionability. (1) If the court, as a matter of law, finds:

(a) A rental agreement or any provision thereof was unconscionable when made, the court may refuse to enforce the agreement, enforce the remainder of the agreement without the unconscionable provision, or limit the application of any unconscionable provision to avoid an unconscionable result; or

(b) A settlement in which a party waives or agrees to forgo a claim or right under this chapter or under a rental agreement was unconscionable when made, the court may refuse to enforce the settlement, enforce the remainder of the settlement without the unconscionable provision, or limit the application of any unconscionable provision to avoid an unconscionable result.

(2) If unconscionability is put into issue by a party or by the court upon its own motion the parties shall be afforded a reasonable opportunity to present evidence as to the setting, purpose and effect of the rental agreement or settlement to aid the court in making the determination. [Formerly 91.735]

 

90.220 Terms and conditions of rental agreement; smoking policy; rent obligation and payment. (1) A landlord and a tenant may include in a rental agreement terms and conditions not prohibited by this chapter or other rule of law including rent, term of the agreement and other provisions governing the rights and obligations of the parties. ****

 

90.262 Use and occupancy rules and regulations; adoption; enforceability; restrictions. (1) A landlord, from time to time, may adopt a rule or regulation, however described, concerning the tenant's use and occupancy of the premises. It is enforceable against the tenant only if:

(a) Its purpose is to promote the convenience, safety or welfare of the tenants in the premises, preserve the landlord's property from abusive use, or make a fair distribution of services and facilities held out for the tenants generally;

(b) It is reasonably related to the purpose for which it is adopted;

(c) It applies to all tenants in the premises in a fair manner;

(d) It is sufficiently explicit in its prohibition, direction or limitation of the tenant's conduct to fairly inform the tenant of what the tenant must or must not do to comply;

(e) It is not for the purpose of evading the obligations of the landlord; and

(f) The tenant has written notice of it at the time the tenant enters into the rental agreement, or when it is adopted.

(2) If a rule or regulation adopted after the tenant enters into the rental agreement works a substantial modification of the bargain, it is not valid unless the tenant consents to it in writing. ****

 

90.510 Statement of policy; rental agreement; rules and regulations; remedies. ***

(6) Every landlord who rents a space for a manufactured dwelling or floating home shall provide rules and regulations concerning the tenant's use and occupancy of the premises. A violation of the rules and regulations may be cause for termination of a rental agreement. However, this subsection does not create a presumption that all rules and regulations are identical for all tenants at all times. A rule or regulation shall be enforceable against the tenant only if:

(a) The rule or regulation:

(A) Promotes the convenience, safety or welfare of the tenants;

(B) Preserves the landlord's property from abusive use; or

(C) Makes a fair distribution of services and facilities held out for the general use of the tenants.

(b) The rule or regulation:

(A) Is reasonably related to the purpose for which it is adopted and is reasonably applied;

(B) Is sufficiently explicit in its prohibition, direction or limitation of the tenant's conduct to fairly inform the tenant of what the tenant shall do or may not do to comply; and

(C) Is not for the purpose of evading the obligations of the landlord. ****

 

Conclusion. Note that ORS 90.295 pertains to "applicant" screening charges, etc. The statute is very specific and detailed. However, that is because it is limited to situations where a prospective tenant is seeking entry into the park as a tenant. There is nothing in Chapter 90 dealing with background check for guests who will remain at the park in excess of 14 days. However, if I were to draft a rule to implement your suggested policy, I would likely use it as a general template of issues that should be addressed, since some of them are the same, e.g. denial of the right to remain at the premises because of a failure to pass the background check. Additionally, you would want to make the list of disqualifying criteria known in advance, so tenants and applicants knew whether it would be worth the cost and effort to apply.

 

 

Lastly, I suggest that you implement such a rule through a rule change in accordance with ORS 90.610. Good luck!

 

 

[1] For example, on nonpayment of rent notices, you would not want to institute a payment period shorter than 72 hours. Similarly, you would not shorten the cure time for a rules violation to less than 30 days. Conversely, if you wanted to lengthen the time to pay late rent or cure a violation, you can certainly do so.

Phil Querin Q&A - Accepting Rent When Another Name is On the Check

Phil Querin

Answer: One issue is accepting rent from a possessor after the legal tenant has gone. This can occur, for example, where someone is residing at the space under a Temporary Occupancy Agreement, but the approved tenant, no longer resides there. Alternatively, the person could be a lawful visitor, who has overstayed their permitted time, and the legal resident has left. ORS 90.403 deals with this:

90.403 Taking possession of premises from unauthorized possessor. (1) If an unauthorized person is in possession of the premises, after at least 24 hours' written notice specifying the cause and the date and time by which the person must vacate, a landlord may take possession as provided in ORS 105.105 to 105.168 if:

(a) The tenant has vacated the premises;

(b) The rental agreement with the tenant prohibited subleasing or allowing another person to occupy the premises without the written permission of the landlord; and

(c) The landlord has not knowingly accepted rent from the person in possession of the premises.

(2) Service of notice under this section does not create a right of tenancy for the person in possession of the premises. [2005 c.391 _12] (Emphasis added.)


In this case, it can be fatal to a landlord's effort to remove that person if rent is accepted. If rent is in the form of a check, cash or money order, I can think of no reason to accept it. Period. Since the person is an unlawful occupant, I'm not concerned that there is no rule on it, since the statute clearly gives you the legal entitlement to evict.


The other issue arises when a lawful resident resides in the space, but they have an occupant who has not been approved as a co-tenant or a temporary occupant. If you are going to accept them as a temporary occupancy, get them on a Temporary Occupancy Agreement. You can do a criminal background check, but not a financial one, since they are there not to subsidize the tenant's rent, as in co-tenancy. Accordingly, do not accept rent in any form from temporary occupant, unless it is drawn on the tenant's sole account and the check bears that out.


As to unlawful occupants who are staying at the space, but have not been approved as a tenant, the issue of the form of payment misses the larger point - which is waiver. If the person is unauthorized, and you know of their occupancy, insist that they apply for tenancy, and make sure they do not stay beyond the time allowed for visitors under the park rules. The issue of waiver is not just a question of accepting a check from the unapproved person. Acceptance of rent from the lawful tenant when you know he or she is housing an unapproved person, can also result in waiver.


ORS 90.412 provides in part:


(2) Except as otherwise provided in this section, a landlord waives the right to terminate a rental agreement for a particular violation of the rental agreement or of law if the landlord:

(a)During three or more separate rental periods, accepts rent with knowledge of the violation by the tenant; or

(b)Accepts performance by a tenant that varies from the terms of the rental agreement.

(3)A landlord has not accepted rent for purposes of subsection (2) of this section if:

(a)Within 10 days after receipt of the rent payment, the landlord refunds the rent; or

(b)The rent payment is made in the form of a check that is dishonored. (Emphasis added)

So the take-away here is that you do not want to accept rent from anyone, even the tenant, when you know they are violating the rules, such as keeping an unapproved occupant at the space. If you accept rent from the lawful tenant under these circumstances, return it within ten days after receipt - if the check has been cashed, write a new check back to the tenant with an explanation, and demand that the unpermitted person apply for tenancy. Under the statute, waiver will not occur for the first two events of accepting the rent without returning is within ten days. The third or subsequent time can constitute a waiver. Waiver does not occur if the rent is properly returned within the ten day period, no matter the number of times it's tendered.


As for taking a rent check from the unapproved person, I don't recommend doing so unless the check is drawn on the tenant's own account. If it's a joint account with the unapproved person, don't accept it. The same holds true of any other form of payment (e.g. cash or money order) unless there is clear evidence that it came from the lawful tenant. Just remember, though, that acceptance of rent from the lawful tenant - in any form - can count as a waiver under ORS 90.412 if you know they have an unlawful occupant at the space.


As for a park rule, I think it's always a good idea to have a rule about the time, place and form of payment. It's OK to say non-residents cannot pay the space rent for residents, but even without such a rule, I believe you are within your rights to refuse payment. Rent is defined at ORS 90.100(37) as follows:


Rent means any payment to be made to the landlord under the rental agreement, periodic or otherwise, in exchange for the right of a tenant and any permitted pet to occupy a dwelling unit to the exclusion of others and to use the premises. (Emphasis added.)

Since the payment from the unauthorized resident is not from a "tenant", and not pursuant to the "rental agreement", and not "in exchange for the right to occupy" the space, it's my opinion that, with or without a rule to this effect, you are within your rights to reject it, regardless of form.

Phil Querin Q&A: Applicant Qualifies, Moves In, Does not Sign Rental Agreement

Phil Querin

Answer: First and foremost, send the checks back as soon as they come in. Do not hold onto them, as there is Oregon case law saying that doing so for an unreasonable amount of time can constitute acceptance. Include a letter with the checks reiterating what you told him about the necessity of the repairs and the need to sign the rental agreement. I hope the nature of the repairs and the amount of time he has to complete them are a part of the rental agreement. IF not they should be. The only real way to enforce this requirement is to make the repairs a written condition of the tenancy. Do not accept any rent from him unless and until the tenant has signed the rental agreement and it contains an explicit description of the work he is to do and a completion date. If he takes possession without having signed a written rental agreement, you may give him a 24-hour notice to terminate under ORS 90.403. The statute contemplates an improper subleasing arrangement which is not the case here. However, in all respects, it should work, since his possession is unauthorized and in possession without a signed rental agreement. Make sure that you use the proper form of notice, as this is not the same situation as giving a 24-hour notice for outrageous conduct under ORS 90.396. Alternatively, if you have rules in the community that prohibit occupancy without a written rental agreement, you could issue a 30-day notice under ORS 90.630(1)(b). That way, if he cured by signing the rental agreement (with the repair provision in it) he could stay. This second alternative, though more time consuming, gives him a chance to come into compliance before having to vacate.

Phil Querin: New MHCO Form 5E - For  Park-Owned - Resident Owned - SubLeasing (PortlandOnly)

Phil Querin

 

 

Portland Housing Code 30.01.085 (Portland Renter Additional Protections), here, became effective on November 1, 2019.  For manufactured housing parks located in the City of Portland, the ordinance DOES NOT apply to rental spaces in which the tenant owns their home; it only applies to rental spaces in which the tenant is renting a park-owned home or subleasing a home from the owner. For purposes of this article, only park-owned homes will be addressed. However, in the event a tenant wishes to sublease a home – and it is permitted by the rules or rental agreement – park owners may discuss with the tenant his or her legal obligations under the Portland ordinances – not because there is a legal obligation to educate the tenant, but because of the financial consequences that can flow from ignoring the law.   


 

 

Below is a short summary of the ordinance. It should not be relied upon to the exclusion of consulting legal counsel or reading the ordinance yourself.

 

Termination of Tenancy in Park-Owned Homes.A Landlord may terminate a Rental Agreement without cause orfor a “qualifying landlord reason”[1]only by delivering a written notice of termination (the “Termination Notice”) to the tenant of:

  • Not less than 90 days before the termination date designated in that notice as calculated under the Act; or
  • The time period designated in the rental agreement, whichever is longer. 
  • Not less than 45 days prior to the termination date provided in the Termination Notice, the landlord shall pay to the tenant, as “Relocation Assistance” a payment as follows: 
    • $2,900 for a studio or single room occupancy (“SRO”) Dwelling unit;
    • $3,300 for a one-bedroom dwelling unit;
    • $4,200 for a two-bedroom dwelling unit; and
    • $4,500 for a three-bedroom or larger dwelling unit. 
  • (A landlord that declines to renew or replace an expiring lease or rental agreement is subject to the above provisions. These payments are intended to apply per dwelling unit, not per individual tenant.) 

 

Rent Increase Limitations For Park-Owned HomesA landlord may not increase a tenant's rent or “Associated Housing Costs”[2]by 5 percent or more over a rolling 12-month period unless the landlord gives notice in writing to each affected tenant: 

  • At least 90 days prior to the effective date of the Rent increase; or 
  • The time period designated in the rental agreement, whichever is longer. 

 

The Increase Notice must specify:

  • The amount of the increase;
  • The amount of the new rent or Associated Housing Costs; and
  • The date when the increase becomes effective.  

 

If, within 45 calendar days after a tenant receives an Increase Notice indicating a rent increase of 10 percent or more within a rolling 12-month period anda tenant provides written notice to the landlord of the tenant’s request for Relocation Assistance (the “Tenant’s Notice”), then:

  • Within 31 calendar days of receiving the Tenant’s Notice, the Landlord shall pay to Relocation Assistance to the tenant in the amount that follows: 
  • $2,900 for a studio or SRO Dwelling unit;
  • $3,300 for a one-bedroom Dwelling unit;
  • $4,200 for a two-bedroom Dwelling unit; and
  • $4,500 for a three-bedroom or larger Dwelling unit.  

 

After the tenant receives the Relocation Assistance from the landlord, the tenant shall have 6 months from the effective date of the rent increase (the “Relocation Period”) to either:

  • Pay back the Relocation Assistance and remain in the dwelling unit and shall be obligated to pay the increased Rent in accordance with the Increase Notice for the duration of the tenant’s occupancy; or
  • Provide the landlord with a notice to terminate the rental agreement in accordance with ORS Chapter 90 (the Oregon Landlord-Tenant Act).  
  • In the event that the tenant has not repaid the Relocation Assistance or provided the landlord with the tenant’s Termination Notice on or before the expiration of the Relocation Period, the tenant shall be in violation of this ordinance. 
  • A landlord that conditions the renewal or replacement of an expiring lease or rental agreement on the tenant’s agreement to pay a rent increase of 10 percent or more within a rolling 12-month period is subject to the above provisions.  
  • A landlord that declines to renew or replace an expiring lease or rental agreement on substantially the same terms except for the amount of rent or Associated Housing Costs is also subject to the above provisions. 
  • (The above requirements are intended to apply per dwelling unit, not per individual tenant, and a tenant may only receive and retain Relocation Assistance once per tenancy per dwelling unit.)

 

MHCO Form 5E. For all park owners who are renting or leasing park-owned homes to tenants, the Portland ordinance requires that they include a description of a tenant’s rights and obligations and the eligible amount of Relocation Assistance for any of the following events:

  • Issuance of a Termination Notice;
  • Issuance of a Rent Increase Notice; and
  • Payment of Relocation Assistance.

A copy of Form 5E on line at MHCO.ORG. It summarizes the litany or rights and duties imposed by the ordinance and should be delivered to the tenant in any of the above three events.

 

Exceptions. The Portland Ordinance 30.10.085 provides that Relocation Assistance does not apply to the following:

 

1.  Rental agreements for week-to-week tenancies;

2.  Tenants that occupy the same dwelling unit as the Landlord;

3.  Tenants that occupy one dwelling unit in a duplex where the landlord’s principal residence is the second Dwelling unit in the same Duplex;

4.  Tenants that occupy an Accessory Dwelling unit that is subject to the Oregon landlord-tenant law in the City of Portland so long as the owner of the Accessory Dwelling unit lives on the site;

5.  A landlord that temporarily rents out the Landlord's principal residence during the landlord's absence of not more than 3 years;

6.  A landlord that temporarily rents out the landlord’s principal residence during the landlord’s absence due to active duty military service;

7.  A dwelling unit where the landlord is terminating the rental agreement in order for an immediate family member to occupy the dwelling unit;

8.  A dwelling unit regulated as affordable housing by a federal, state or local government for a period of at least 60 years;

9.  A dwelling unit that is subject to and in compliance with the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970;

10. A dwelling unit rendered uninhabitable not due to the action or inaction of a landlord or tenant;

11.  A dwelling unit rented for less than 6 months with appropriate verification of the submission of a demolition permit prior to the tenant renting the dwelling unit.

12.  A dwelling unit where the landlord has provided a fixed term tenancy and notified the tenant prior to occupancy, of the landlord’s intent to sell or permanently convert the dwelling unit to another use.

 

A landlord that fails to comply with any of the above requirements may be liable to the tenant for an amount up to 3 times the monthly rent as well as actual damages, Relocation Assistance, reasonable attorney fees and costs.

 

An Idle Thought For Park-Owned Homes. Why not sell them to a deserving, but cash-poor tenant? I’ll discuss issues with park owners doing exactly that and carrying back the security documents in a later article.

 

Once sold, many of these byzantine landlord-tenant ordinances and laws disappear, and the landlord is still protected in the event of the tenant’s default in space rent by using a cross-default provision in the security documents

 

[1]Pursuant to Oregon Senate Bill 608 (2019), a “qualifying landlord reason” to terminate a tenancy without cause consists of the following events: The landlord intends to demolish the dwelling unit within a reasonabletime; The landlordintendsconvertit to a non-residential use withinareasonabletime; Thelandlordintendstoundertakerepairsor renovationstoit withina reasonable timeandit is currently unsafe or unfit for occupancy;or thedwellingwillbeunsafeorunfitforduringtherepairsor renovations;or the landlordhas acceptedanoffertosellit and thebuyerintendsingoodfaithtooccupyit as a primary residenceandwithin120daysafteracceptingtheoffer,thelandlordprovidesthetenant with a written notice of termination with a specific termination date together with written evidence of the offer of purchase; The landlordintends to, or amemberofhis/her immediatefamily,tooccupythedwelling as a primary residence  andthelandlorddoesnotthen ownaunitinthesamebuildingthatisavailableforoccupancy.

 

[2]According to Portland Housing Ordinance 30.01.030 (Definitions) “Associated Housing Costs” “(i)include, but are not limited to, fees or utility or service charges, means the compensation or fees paid or charged, usually periodically, for the use of any property, land, buildings, or equipment. For purposes of this Chapter, housing costs include the basic rent charge and any periodic or monthly fees for other services paid to the Landlord by the Tenant, but do not include utility charges that are based on usage and that the Tenant has agreed in the Rental Agreement to pay, unless the obligation to pay those charges is itself a change in the terms of the Rental Agreement.”

Phil Querin Q&A - Death of Resident and an Uncooperative Estate

Phil Querin

Answer: This sounds like an episode from a Jerry Springer reality show! Your question doesn'tmake it clear whether the estate was formally filed for probate in court, in which case this "Administrator" would be subject to court supervision and would have to have a bond. I'm suspecting that is not the case - but if it is, you may want to secure legal counsel to notify the court of what's happening and perhaps get him removed.

 

Assuming that the person is just a designee for the un-probated estate (I will call him the "representative"), I would suggest that you look to ORS 90.675(20), which applies when a resident living alone passes away. Subsection (20) is summarized below, but should not be used as a substitute for reading ORS 90.675 (linked here) in its entirety:

 

 

  • This subsection (20) applies the same duties as those of a resident who abandoned the property.
  • It also applies to any personal representative named in a will or appointed by a court, or any person designated in writing by the decedent to be contacted by the landlord in the event of the tenant's death;
  • The 45-day abandonment notice required in ORS 90.675(3) (go to above link) is to be sent by first class mail to this representative at the premises, and also personally delivered or sent by first class mail to them if actually known to the landlord.
  • If the representative responds by actual notice to a landlord within the 45-day period provided in the letter and so requests, the landlord shall enter into a written storage agreement with the representative or person providing that the personal property may not be sold or disposed of by the landlord for up to 90 days or until conclusion of any probate proceedings, whichever is later.
  • Note: Entering into the storage agreement includes the duty to pay a "storage fee" which can be no higher than the space rent. This duty is not triggered until the 45-day letter is sent. Presumably you will use a good storage agreement that requires, among other things, compliance with all applicable park rules and state, federal and local laws and ordinances, including a duty to maintain the space. On- site destruction of the home is NOT maintaining the space. Depending upon the home's age, on site destruction could be a violation of certain environmental laws, due to potentially hazardous material used in construction. In fact, since there is a risk that the representative will not comply with the storage agreement - based on his threat of destruction - you may want to consider - only upon the advice of your attorney - to restrict his unsupervised access to the home. Destruction of the home would not only take it off the tax rolls in violation of Oregon property tax law, but it would prevent you, as the landlord, from selling the home upon failure of the representative to meet his obligations. Remember, in addition to the tax collector, you have a vested interest in seeing the home sold for recoupment any sums due (arguably including attorney fees) incurred during the abandonment process.
  • Since the abandonment law requires that the landlord has a duty of safe keeping pending completion of the abandonment process, it is my belief[1] that this entitles the landlord to secure the home (e.g. with a new lock) so that heirs and others cannot enter and remove personal property.
  • A storage agreement entitles the representative to store the personal property on the space during the term of the agreement, but does not entitle anyone to occupy the personal property.
  • If such an agreement is entered into, the landlord may not enter a similar agreement with a lienholder (if any) until the agreement with the representative ends.
  • If the representative requests that a landlord enter into a storage agreement and there is a lienholder, also, you should review subsections (19)(c) to (e) and (g)(C) of ORS 90.675, which describes the rights and responsibilities of a lienholder with regard to the storage agreement.
  • During the term of the Storage Agreement, the representative has the right to remove or sell the property, including a sale to a purchaser or a transfer to an heir who wishes to leave the property on the space and become a tenant. However, this prospective tenant is subject to the same statutory requirement, including landlord qualification and approval, as found in ORS 90.680 (linked here). The landlord also may condition approval for occupancy upon payment of all unpaid storage charges and maintenance costs.
  • If the representative violates the storage agreement, the landlord may terminate it by giving at least 30 days' written notice to them stating facts sufficient to notify them of the reason for the termination. Unless the representative or person corrects the violation within the notice period, the Storage Agreement terminates as provided and the landlord may sell or dispose of the property without further notice to the representative.

 

 

 

 

  • Upon the failure of a representative to enter into a storage agreement or upon termination of an agreement, unless the parties otherwise agree or the representative has sold or removed the home, the landlord may sell or dispose of it pursuant to sale provisions of ORS 90.675 without further notice to the representative.

 

 

 

 

So, in summary, the abandonment statute - which is quite lengthy and somewhat difficult to follow - applies in this case, and with proper guidance, you should be able to successfully deal with the representative.

 

[1] I'm not rendering a "legal opinion" in this Answer - PCQ

Abandonment and Resident Destruction of Home

Question: A resident living alone passed away. It took some time for the estate to get underway because they had to search for heirs. An heir was located and was appointed as Administrator to act on behalf of the estate. Shortly after the resident’s passing, we began requesting that a Storage Agreement be signed but the estate was hesitant to do so until the Administrator was appointed. After the appointment the Administrator was initially cooperative, but unexpectedly changed his mind and is now threatening to bring all of the past due rent current, and then, out of spite, tear the home down while still on the space. Presumably, after doing so, we would expect the Administrator to cease all further space rental payments. How should we handle this?

Answer: This sounds like an episode from a Jerry Springer reality show! Your question doesn’t make it clear whether the estate was formally filed for probate in court, in which case this “Administrator” would be subject to court supervision and would have to have a bond. I’m suspecting that is not the case – but if it is, you may want to secure legal counsel to notify the court of what’s happening and perhaps get him removed.

Assuming that the person is just a designee for the un-probated estate (I will call him the “representative”), I would suggest that you look to ORS 90.675(20), which applies when a resident living alone passes away. Subsection (20) is summarized below, but should not be used as a substitute for reading ORS 90.675 (linked here) in its entirety:

• This subsection (20) applies the same duties as those of a resident who abandoned the property.

• It also applies to any personal representative named in a will or appointed by a court, or any person designated in writing by the decedent to be contacted by the landlord in the event of the tenant’s death;

• The 45-day abandonment notice required in ORS 90.675(3) (go to above link) is to be sent by first class mail to this representative at the premises, and also personally delivered or sent by first class mail to them if actually known to the landlord.

• If the representative responds by actual notice to a landlord within the 45-day period provided in the letter and so requests, the landlord shall enter into a written storage agreement with the representative or person providing that the personal property may not be sold or disposed of by the landlord for up to 90 days or until conclusion of any probate proceedings, whichever is later.

Note: Entering into the storage agreement includes the duty to pay a “storage fee” which can be no higher than the space rent. This duty is not triggered until the 45-day letter is sent. Presumably you will use a good storage agreement that requires, among other things, compliance with all applicable park rules and state, federal and local laws and ordinances, including a duty to maintain the space. On- site destruction of the home is NOT maintaining the space. Depending upon the home’s age, on site destruction could be a violation of certain environmental laws, due to potentially hazardous material used in construction. In fact, since there is a risk that the representative will not comply with the storage agreement – based on his threat of destruction - you may want to consider – only upon the advice of your attorney – to restrict his unsupervised access to the home. Destruction of the home would not only take it off the tax rolls in violation of Oregon property tax law, but it would prevent you, as the landlord, from selling the home upon failure of the representative to meet his obligations. Remember, in addition to the tax collector, you have a vested interest in seeing the home sold for recoupment any sums due (arguably including attorney fees) incurred during the abandonment process.

• Since the abandonment law requires that the landlord has a duty of safe keeping pending completion of the abandonment process, it is my belief that this entitles the landlord to secure the home (e.g. with a new lock) so that heirs and others cannot enter and remove personal property.

• A storage agreement entitles the representative to store the personal property on the space during the term of the agreement, but does not entitle anyone to occupy the personal property.

• If such an agreement is entered into, the landlord may not enter a similar agreement with a lienholder (if any) until the agreement with the representative ends.

• If the representative requests that a landlord enter into a storage agreement and there is a lienholder, also, you should review subsections (19)(c) to (e) and (g)(C) of ORS 90.675, which describes the rights and responsibilities of a lienholder with regard to the storage agreement.

• During the term of the Storage Agreement, the representative has the right to remove or sell the property, including a sale to a purchaser or a transfer to an heir who wishes to leave the property on the space and become a tenant. However, this prospective tenant is subject to the same statutory requirement, including landlord qualification and approval, as found in ORS 90.680 (linked here). The landlord also may condition approval for occupancy upon payment of all unpaid storage charges and maintenance costs.

• If the representative violates the storage agreement, the landlord may terminate it by giving at least 30 days’ written notice to them stating facts sufficient to notify them of the reason for the termination. Unless the representative or person corrects the violation within the notice period, the Storage Agreement terminates as provided and the landlord may sell or dispose of the property without further notice to the representative.

• Upon the failure of a representative to enter into a storage agreement or upon termination of an agreement, unless the parties otherwise agree or the representative has sold or removed the home, the landlord may sell or dispose of it pursuant to sale provisions of ORS 90.675 without further notice to the representative.

So, in summary, the abandonment statute – which is quite lengthy and somewhat difficult to follow – applies in this case, and with proper guidance, you should be able to successfully deal with the representative.

Phil Querin Q&A: Resident Dies - Administrator Initially Cooperative Turns Ugly

Phil Querin

Answer: This sounds like an episode from a Jerry Springer reality show! Your question doesn'tmake it clear whether the estate was formally filed for probate in court, in which case this "Administrator" would be subject to court supervision and would have to have a bond. I'm suspecting that is not the case - but if it is, you may want to secure legal counsel to notify the court of what's happening and perhaps get him removed.

Assuming that the person is just a designee for the un-probated estate (I will call him the "representative"), I would suggest that you look to ORS 90.675(20), which applies when a resident living alone passes away. Subsection (20) is summarized below, but should not be used as a substitute for reading ORS 90.675 (linked here) in its entirety:

  • This subsection (20) applies the same duties as those of a resident who abandoned the property.
  • It also applies to any personal representative named in a will or appointed by a court, or any person designated in writing by the decedent to be contacted by the landlord in the event of the tenant's death;
  • The 45-day abandonment notice required in ORS 90.675(3) (go to above link) is to be sent by first class mail to this representative at the premises, and also personally delivered or sent by first class mail to them if actually known to the landlord.
  • If the representative responds by actual notice to a landlord within the 45-day period provided in the letter and so requests, the landlord shall enter into a written storage agreement with the representative or person providing that the personal property may not be sold or disposed of by the landlord for up to 90 days or until conclusion of any probate proceedings, whichever is later.
  • Note: Entering into the storage agreement includes the duty to pay a "storage fee" which can be no higher than the space rent. This duty is not triggered until the 45-day letter is sent. Presumably you will use a good storage agreement that requires, among other things, compliance with all applicable park rules and state, federal and local laws and ordinances, including a duty to maintain the space. On- site destruction of the home is NOT maintaining the space. Depending upon the home's age, on site destruction could be a violation of certain environmental laws, due to potentially hazardous material used in construction. In fact, since there is a risk that the representative will not comply with the storage agreement - based on his threat of destruction - you may want to consider - only upon the advice of your attorney - to restrict his unsupervised access to the home. Destruction of the home would not only take it off the tax rolls in violation of Oregon property tax law, but it would prevent you, as the landlord, from selling the home upon failure of the representative to meet his obligations. Remember, in addition to the tax collector, you have a vested interest in seeing the home sold for recoupment any sums due (arguably including attorney fees) incurred during the abandonment process.
  • Since the abandonment law requires that the landlord has a duty of safe keeping pending completion of the abandonment process, it is my belief[1] that this entitles the landlord to secure the home (e.g. with a new lock) so that heirs and others cannot enter and remove personal property.
  • A storage agreement entitles the representative to store the personal property on the space during the term of the agreement, but does not entitle anyone to occupy the personal property.
  • If such an agreement is entered into, the landlord may not enter a similar agreement with a lienholder (if any) until the agreement with the representative ends.
  • If the representative requests that a landlord enter into a storage agreement and there is a lienholder, also, you should review subsections (19)(c) to (e) and (g)(C) of ORS 90.675, which describes the rights and responsibilities of a lienholder with regard to the storage agreement.
  • During the term of the Storage Agreement, the representative has the right to remove or sell the property, including a sale to a purchaser or a transfer to an heir who wishes to leave the property on the space and become a tenant. However, this prospective tenant is subject to the same statutory requirement, including landlord qualification and approval, as found in ORS 90.680 (linked here). The landlord also may condition approval for occupancy upon payment of all unpaid storage charges and maintenance costs.
  • If the representative violates the storage agreement, the landlord may terminate it by giving at least 30 days' written notice to them stating facts sufficient to notify them of the reason for the termination. Unless the representative or person corrects the violation within the notice period, the Storage Agreement terminates as provided and the landlord may sell or dispose of the property without further notice to the representative.

  • Upon the failure of a representative to enter into a storage agreement or upon termination of an agreement, unless the parties otherwise agree or the representative has sold or removed the home, the landlord may sell or dispose of it pursuant to sale provisions of ORS 90.675 without further notice to the representative.

So, in summary, the abandonment statute - which is quite lengthy and somewhat difficult to follow - applies in this case, and with proper guidance, you should be able to successfully deal with the representative.

[1] I'm not rendering a "legal opinion" in this Answer - PCQ

Q&A on New Mediation Law

Bill Miner

 

Introduction and Background

SB 586 was developed by the Manufactured Housing Landlord/Tenant Coalition during 19 meetings (each of approximately 3 hours) from September 2017 through February, 2019. There are several pieces to SB 586; however, this Q&A focuses on the limited mandatory mediation policy together with the $100,000 annual grant the Legislature has authorized be allocated to the Oregon Law Center to assist manufactured and floating home tenants with understanding and enforcing the Oregon Residential and Landlord Tenant Act.

As was reported by Chuck Carpenter during the Legislative session, the goal from MHCO’s perspective, was to use the coalition to get the best possible result considering the political landscape in the Legislature. Bluntly, some of the original ideas proposed by the tenants in the coalition were quite onerous. The end result, however, is a true compromise that is favorable to MHCO landlords, all things considered.

If you would like to learn more about these issues and/or you have particular questions, please join me for my presentation at the 2019 Annual Conference in October. In the meantime here are 16 questions and answers that will get you started.

1. What does mediation mean? Mediation is an alternative dispute resolution process that is different from going to court and having a judge (or jury) pick a winner and loser by determining the facts and applying the law to the facts. Mediation is also different from arbitration. At an arbitration, the parties typically pick a person (usually an attorney) to act like a judge and determine the facts and apply law. At an arbitration there is also a winner and a loser. 

 

In mediation, the parties typically pick a third party neutral who will meet with the parties to help them find a solution to resolve a dispute. Because mediation requires the agreement of the parties to come to a resolution, it is not always successful. Mediation does not limit a party’s ability to file a lawsuit or arbitration.

 

In my experience, the cases that resolve at mediation are where bothparties come with an open mind, are willing to listen and can consider compromise in order to avoid the cost and hassle of litigation. 

 

In my experience, the cases that don’t resolve are usually because one of the parties has unrealistic expectations or opinion of their case, or that the matter should move forward based on “principle.” 

 

 

2.   When is mediation required? Mediation is required for any non-exempt issues (see question 3) involving compliance with the rental agreement or non-exempt conduct of a landlord or a tenant within the facility. Please note that a facility is a manufactured home park or a floating home marina. Mediation can be initiated regarding a non-exempt dispute between a landlord and a tenant or between two or more tenants. Note that if the dispute is between two or more tenants, mediation must be initiated by the landlord. 

 

3.   What types of disputes are exempt (i.e. not subject to mediation)? The following disputes are not subject to mediation:

 

(a) Facility closures consistent with ORS 90.645 or 90.671; 

(b) Facility sales consistent with ORS 90.842 to 90.850; 

(c) Rent payments or amounts owed, including increases in rent consistent with ORS 90.600;

(d) Termination of tenancy pursuant to ORS 90.394 (failure to pay rent), 90.396 (24 hour notices), or 90.630(8) (three strike provision); 

(e) A dispute brought by a tenant who is alleged to be a perpetrator of domestic violence, sexual assault or stalking under ORS 90.445 when the dispute involves either the allegation or the victim of domestic violence, sexual assault or stalking; 

(g) A dispute involving a person not authorized to possess a dwelling unit as described in ORS 90.403; or 

(h) A dispute raised by the landlord or tenant after the tenancy has terminated and possession has been returned to the landlord (including ORS 90.675 (abandonments). 

 

4.   How is mediation initiated? Mediation maybe initiated by a tenant or a landlord. If a tenant or landlord initiates the mediation process, then the parties are required to participate (but see questions 7 and 8 below). If there is a dispute between or among tenants, a landlord mustinitiate mediation.  

 

5.   What if mediation is not currently included in my rental agreement? A landlord and/or tenant is required to mediate regardless of whether a rental agreement currently provides for mediation. If a rental agreement does not currently have such a process, SB 586 requires a landlord to unilaterally amend the rental agreement to include mediation. Specifically, ORS 90.510 (5) (what is required to be included in rental agreements) is amended to include in a rental agreement a section for mandatory mediation of disputes that states: “that the tenant or the landlord may request mandatory mediation of a dispute that may arise concerning the rental agreement or the application of this chapter, and the process by which a party may request mediation, including a link to the web site for the Manufactured and Marina Communities Resource Center with additional information about mandatory mediation of disputes.”

 

 6.  Who facilitates a mediation? Mediation may be requested through either: (1) Manufactured and Marina Communities Resource Center (“MMCRC”); or (2) a local Community Dispute Resolution Center (“CDRC”); or (3) a mutually agreed-upon and qualified mediator. Each party must cooperate with the CDRC or designated mediator in scheduling a mediation session at a mutually agreeable day and time, within 30 days of the initiation of mediation. Each party must attend at least one mediation session. 

 

7.   Who has to participate in the mediation (i.e. does it have to be the owner)?  A landlord can designate a representative to participate in the mediation on the Landlord’s behalf (including a non attorney). The representative, however, must have the authority to resolve the dispute in the mediation.  Note that a tenant can also designate a representative.

 

8.   Do I have to reach an agreement in the mediation?  No.Neither party is required to reach an agreement in a mediation. Each party must attempt to mediate the dispute in “good faith.”  The law specifically says that the parties are not required to: (1) reach an agreement on all or any issues in the mediation; (2) participate in more than one mediation session; (3) participate for an unreasonable length of time in a mediation session; or (4) participate if the other party is using the mediation to harass the party or is otherwise abusing the duty to meditate.

 

9.   What would happen if a party failed to meditate in good faith? If a party fails to meditate in good faith by abusing the right to require mediation or uses mediation to harass the other party, the aggrieved party may recover an amount equal to one month’s rent from the violating party. Please note that this is a two way street. In addition, the other party has a defense to any claim brought by the violating party over the dispute involved in the mediation request, and may have the claim dismissed.

 

10.Can I use an admission in mediation at a subsequent trial? Conversely, can something I say be used against me? No. Mediation, and what is said during mediation, is confidential. Any statement made in a mediation is inadmissible. The purpose is to have an honest dialogue in order to encourage a settlement. Additionally, a mediator cannot be called as a witness.

 

11.Can a tenant request a mediation after I send them a termination of tenancy notice?

Mediation can be requested after a notice terminating tenancy has been sent to a tenant, but only if the request is made to MMCRC or a designated mediator and a written confirmation of that request is delivered to you (the landlord) beforethe landlord files an action for possession under ORS 105.110. If the tenant delivers a notice requesting mediation before a landlord files an eviction action, the landlord may not file such action until after the mediation process concludes. If a landlord delivers a notice requesting mediation before a tenant files an action regarding a dispute, the tenant may not file such action until after the mediation process ends

 

12. Can I still accept rent during the mediation process?  YesNotwithstanding ORS 90.412, acceptance of rent or performance by a landlord after either party requests mediation and during the mediation process does not constitute waiver of the landlord’s right to terminate a tenancy following the mediation. Acceptance of rent or performance after the mediation process ends may constitute waiver. Additionally, all statutes of limitations are suspended during the mediation process. 

 

13.What happens after the mediation? If a mediation is successful, the parties should come to an agreement that resolves the dispute. The question is how enforceable is the agreement. Enforceability will depend upon the issues involved, the terms and how the agreement is drafted. I would encourage you to discuss with your legal counsel strategies on how to make the most of a mediation.For example, if an eviction action has already commenced, you may want to attempt to make the agreement a part of the ORS 105.148 mediation/agreement process. Another example is setting up an enforcement mechanism within the agreement itself.  

 

The CDRC or the designated mediator shall notify MMCRC of the successful or unsuccessful outcome of the mediation. The parties and the CDRC or mediator are not required to give a copy of any mediation agreement to MMCRC.

 

If a mediation is not successful, the parties may continue on the path they were on before the mediation. 

 

14.This sounds expensive, who is paying for it?Mediations will be performed by the existing network of CDRC mediators, funded by the existing annual assessment already paid by tenants ($10, collected with property tax assessments).  If the parties choose a private mediator, then the parties will have to determine how that mediator is paid. Additionally, the current annual fee paid by park landlords ($25 for parks of 20 spaces or fewer, $50 for larger parks) is doubled.

 

15. Very interesting (as always), Bill, but what’s this about $100,000 annual grant to the Oregon Law Center?As you may be aware, some states have allocated substantial funding to their state’s Justice Department or to create a team of private attorneys general to assist with enforcement of tenant rights. Similar systems were originally proposed by the tenants during coalition meetings and were strongly opposed by the landlord group. The ultimate compromise was a limited $100,000 per year grant to be given to the Oregon Law Centerto employ oneattorney to provide direct legal services to statewide park and marina residents on matters arising under the Oregon Residential Landlord Tenant Act.

 

16.Is mandatory mediation and the $100,000 per year in perpetuity? No. Both elements have a four-year sunset. An advisory committee has been created to monitor both elements, consisting of equal numbers of landlord and tenant representatives to present a report on the status of both elements to the 2021 and 2023 Legislatures to determine whether they should be renewed.

 

17. When does all of this go into effect? The effective date of SB 586 is January 1, 2010.