Oregon Landlord-Tenant Law: A Guide for Property Owners

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.
• Under ORS 90.323 and ORS 90.324, Oregon’s statewide rent cap is 7% plus CPI, capped at 10%. For 2027, the maximum allowable increase is 10%. Properties whose first certificate of occupancy was issued less than 15 years before the rent increase notice are exempt from the statewide cap.
• 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.

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. 

On top of the state law, Portland layers its own rules, most notably the FAIR Ordinance, which affects screening and applications inside city limits. 

Rental regulations can vary by location. Oregon landlords should check the current requirements for the property’s specific city and county, including any local tenant protections, relocation assistance rules, and notice requirements, rather than assuming state law is the only standard that applies.

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. 

Rent Rules: Oregon’s Rent Cap, 2027 Limits, and Notice Periods

Oregon’s statewide rent stabilization law limits most rent increases to 7% plus the annual change in the Consumer Price Index (CPI), capped at 10%. For 2027, the maximum allowable rent increase is 10%, according to the Oregon Department of Administrative Services (DAS). This formula is established under ORS 90.324.

Under ORS 90.323 and ORS 90.324, landlords generally cannot increase rent during the first year of a tenancy and must provide at least 90 days’ written notice before a rent increase. Rent can only be increased once within any 12-month period.

Properties whose first certificate of occupancy was issued less than 15 years before the rent increase notice are exempt from Oregon’s statewide rent cap. 

However, landlords claiming this exemption must include facts supporting the exemption in the written rent increase notice, as required by ORS 90.323.

This exemption can be particularly relevant for owners of newer properties, while most older single-family rentals and plexes in the Portland metro area remain subject to the cap.

Two things trip owners up here. First, any rent increase requires proper written notice, and Oregon allows only one increase in any 12-month period, so timing matters as much as the percentage.

Second, landlords need to understand both statewide and Portland relocation assistance requirements. Under ORS 90.427, landlords with an ownership interest in more than four residential units generally owe one month’s rent for qualifying landlord-reason terminations. 

Portland adds local protections under PCC 30.01.085, including relocation assistance when rent or associated housing costs increase by 10% or more over a rolling 12-month period. Tenants have 45 calendar days after receiving the rent increase notice to request payment in writing. 

When both state and Portland payments apply to the same qualifying termination, the Portland payment may be reduced by the state payment if both are paid together.

This makes 9.9% the practical planning threshold for Portland properties. Because the statewide rent cap limits how much catch-up you can do later, and Portland’s relocation rules add another financial consideration, setting the right rent at lease-up matters more than ever.

Portland’s FAIR Ordinance Adds Another Layer

Portland’s FAIR ordinance (PCC 30.01.086) requires landlords to publish notice of an available rental unit at least 72 hours before they begin accepting applications. 

The notice must state when applications will open and, if a screening fee is charged, describe the factors used to evaluate applicants. 

Landlords must process applications in order of receipt and provide the required Statement of Applicant Rights and Responsibilities with application forms. Screening criteria and application procedures must also comply with Portland’s requirements.

Deposits inside Portland are subject to local limits under PCC 30.01.087. If a landlord collects last month’s rent, the security deposit cannot exceed half a month’s rent. If last month’s rent is not collected, the security deposit cannot exceed one month’s rent.

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.

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 2027?

Under ORS 90.323 and ORS 90.324, Oregon’s statewide rent cap is 7% plus CPI, capped at 10%. For 2027, the maximum allowable increase is 10%. 

Properties whose first certificate of occupancy was issued less than 15 years before the rent increase notice are exempt from the statewide cap.

Do I Have to Pay Relocation Assistance to a Tenant in Portland?

You may owe $2,900 to $4,500 in Portland relocation assistance for qualifying terminations or rent increases of 10% or more within a rolling 12-month period. 

Separately, Oregon landlords with an ownership interest in more than four residential units generally owe one month’s rent for qualifying landlord-reason terminations under ORS 90.427. Exemptions and specific triggers apply, so confirm your obligations before acting.

What is Portland’s FAIR Ordinance?

It’s a city ordinance requiring first-come, first-served applicant processing, advance notice of at least 72 hours before accepting applications, disclosed screening criteria, and a Statement of Applicant Rights and Responsibilities.

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.