Key Takeaways
- Oregon’s Residential Tenancy Act sets the core rules for most residential rentals, while Portland properties must also follow city-specific requirements.
- Landlords must meet habitability standards and provide required lease and property disclosures to avoid compliance problems.
- In 2026, most Oregon landlords can raise rent by up to 9.5%, with 90 days’ written notice and no more than one increase in 12 months.
- Portland landlords face additional requirements under the FAIR Ordinance, including specific screening procedures, deposit limits, and potential relocation assistance.
If you own a rental anywhere from Sellwood to Sherwood, Oregon landlord-tenant law sets the rules for almost every decision you’ll make this year.
Most owners we talk with, especially first-time and accidental landlords who inherited a house or moved out of their own home and rented it, don’t know where the statewide rules end and Portland’s city-specific rules begin.
This guide, by Touchstone Property Management lays out the framework: the Oregon Residential Tenancy Act, lease and disclosure requirements, habitability standards, rent rules, and notice periods.
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What Oregon Landlord-Tenant Law Actually Covers
Oregon’s landlord-tenant framework lives mostly in ORS Chapter 90, commonly called the Oregon Residential Tenancy Act.
It governs leases, deposits, notices, habitability, and termination for almost every residential rental in the state, with a few narrow exceptions like owner-occupied duplexes.
On top of the state law, Portland layers its own rules, most notably the FAIR Ordinance, which affects screening and applications inside city limits.
If your property sits in Clackamas, Beaverton, Gresham, or Hillsboro, you follow state law without the city overlay. If it sits inside Portland proper, you follow both.
Lease Agreements and Required Disclosures
Owners have to disclose things like the name and address of anyone authorized to manage the property, whether the unit has ever flooded, and lead-based paint information for buildings built before 1978.
Skip a required disclosure and you can lose leverage later, particularly in a dispute over deposits or termination.
We see this most with owners who are renting out a house for the first time, often a former primary residence they didn’t buy as a rental.
They tend to use a generic lease pulled off the internet that doesn’t reflect Oregon’s specific disclosure list or Portland’s screening disclosures.
Habitability Standards Under the Oregon Residential Tenancy Act
Oregon law requires rentals to meet specific habitability standards: working plumbing, heat, hot water, weatherproofing, and functioning smoke and carbon monoxide alarms, among other things.
If a unit falls out of compliance, residents have remedies under ORS 90.360, including in some cases the right to repair and deduct from rent.
This is where legacy portfolios run into trouble. We regularly work with adults who’ve inherited a parent’s plex and discover deferred maintenance, outdated leases, and habitability gaps that built up over a decade or more.
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Rent Rules: SB 608, the 9.5% Cap, and Notice Periods
Oregon’s statewide rent control law, SB 608, caps most rent increases at 7% plus the annual change in the Consumer Price Index, with a hard ceiling of 10%. For 2026, that math puts the maximum increase at 9.5%.
Buildings within 15 years of their first certificate of occupancy are exempt from the cap, which matters if you own something newer, but most single-family homes and older plexes in the Portland metro don’t qualify for that exemption.
Two things trip owners up here. First, any rent increase requires 90 days’ written notice, and Oregon allows only one increase in any 12-month period, so timing matters as much as the percentage.
Second, in Portland, a no-cause termination or a rent increase of 10% or more can trigger relocation assistance of $2,900 to $4,500 owed to the resident.
Because the cap limits how much catch-up you can do later, setting the right rent at lease-up matters more in 2026 than it has in years.
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Portland’s FAIR Ordinance Adds Another Layer
If your rental is inside Portland city limits, the FAIR Ordinance governs how you screen and select applicants.
It requires first-come, first-served processing, disclosed screening criteria published before you accept applications, a Statement of Applicant Rights, and a minimum 72-hour window for showings before you can require an application.
Deposits inside Portland are also capped at 1.5 times one month’s rent, and once a resident moves out, deposits have to be returned with an itemized accounting within 31 days.
Owners managing properties in both Portland proper and the suburbs often apply the wrong rule to the wrong address, screening a Beaverton applicant under Portland’s first-come, first-served process, or vice versa.
Tenant Rights Every Owner Should Know
Residents in Oregon have the right to a habitable unit, the right to notice before entry except in emergencies, the right to organize or join a tenant association without retaliation, and protection against retaliatory eviction for exercising any of these rights.
They also have specific rights around deposit accounting and, inside Portland, the right to the disclosures and screening protections under the FAIR Ordinance.
Understanding these rights isn’t about siding with residents over owners. It’s about knowing where the lines are so you don’t cross one by accident. Most disputes we see start with a landlord who didn’t know a rule existed, not one who ignored it on purpose.
How Touchstone Handles Compliance for Portland Metro Owners
We built our management model around one idea: solve problems before they become problems.
For compliance, that means leases and disclosures that are current with Oregon and Portland requirements, rent increases calculated and noticed correctly the first time, and deposit accounting that hits the 31-day deadline instead of scrambling toward it.
When we take on a legacy plex portfolio that’s fallen out of compliance, we walk the owner through what needs to change and why, in plain language, not legal jargon.
Doug Moe answers questions personally, and a real local person picks up the phone at our Clackamas office.
Whether you’re an out-of-state owner, someone who just inherited a rental, or a self-managing landlord who’s outgrown doing it alone, Touchstone Property Management will work to protect and grow your biggest asset while you stress less about the rules.
Talk to a Local Owner Who Knows the Rules
Oregon and Portland landlord-tenant law changes the numbers every year, and getting one notice period or one calculation wrong can cost thousands. If you’d rather stop tracking every update yourself, schedule a 30-minute call with our Touchstone Property Management team.
We’ll talk through your property, your goals, and give you a straight answer on what compliant, proactive management looks like for your specific address.
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Frequently Asked Questions
What is the Oregon Residential Tenancy Act?
It’s the body of state law, found mainly in ORS Chapter 90, that governs leases, deposits, habitability, notices, and terminations for most residential rentals in Oregon.
How Much Can I Raise Rent in Oregon in 2026?
Under SB 608, the statewide cap is 7% plus CPI, capped at 10%. For 2026 that works out to 9.5%. Buildings within 15 years of their first certificate of occupancy are exempt.
Do I Have to Pay Relocation Assistance to a Tenant in Portland?
You may owe $2,900 to $4,500 in relocation assistance if you issue a no-cause termination or raise rent 10% or more inside Portland city limits. State exemptions and specific triggers apply, so confirm before you act.
What is Portland’s FAIR Ordinance?
It’s a city ordinance requiring first-come, first-served applicant processing, disclosed screening criteria, a Statement of Applicant Rights, and a minimum 72-hour showing window before requiring an application.
How Fast Do I Have to Return a Security Deposit in Oregon?
Within 31 days of move-out, with an itemized accounting of any deductions.