**See Appendix A for a checklist of items to review before signing a lease.**

Types of Rental Agreements

Length of Time

A rental agreement may  be a week-to-week tenancy, month-to-month tenancy, or fixed term tenancy (a lease). (90.100(34))

Landlords may increase rent with a 7-day written notice for weekly tenants, and with a 30-day written notice for monthly agreements. Landlords may also terminate weekly agreements with a 10-day "no cause" written eviction notice, and monthly agreements with a 30-day "no cause" written eviction notice.

Term agreements are commonly called "leases" and have a starting and ending date. They typically run a year, a school year, a half-year, etc., and usually end without notice when that time is up. If a tenant stays in the property after the end of a term lease without signing a new agreement, the tenancy continues as a month to month agreement with all the other terms of the old lease.

Landlords may reserve the right to raise rent during the course of a lease. Read the rental agreement carefully.

Note: A "Section 8" voucher is a type of agreement through the local housing authority. The program gives rent assistance to tenants who qualify through HUD. Landlords who accept "section 8" voucher tenants may end a rental agreement without cause upon the ending date of the term agreement.  See Appendix B for resources and contact information.

Oral Agreements

Rental agreements can be oral or written. However, written agreements have the advantage of providing evidence concerning who is responsible for what. Oral agreements may lead to serious misunderstandings in the future if both parties must rely on memory to resolve a dispute.

Written Agreements

Most written agreements are on one of several standardized forms. The agreements may contain conditions not mentioned in the Act but that are legal when signed by the tenant (house rules, etc.), provided the rule is not prohibited by the Act or other laws. (See "The Agreement Can Include" ...below.)

The Act also gives landlords some rights which can only be exercised if a written rental agreement so provides. For example, a landlord may serve a certain notices by "nail and mail" only if a "written rental agreement so provides." (90.155(1)) (See Evictions)

Tip: Keep a copy of everything to do with your tenancy in a file, and hold on to it, even after you move out.

What the Agreement Can Include

The Act identifies what the rental agreement should contain and what the landlord must disclose to the tenant. If a written agreement is signed, a copy shall be given to the tenant as well as any changes, additions or amendments. Even if you have no rental agreement at all, the law sets out a few basic terms.

"Good Faith"

"Good faith" means honesty in the conduct of transactions. (90.100(17)) The law imposes an obligation of "good faith" on every duty and remedy in the performance of a rental contract. (90.130)

Occupancy Limits

Landlords are free to set reasonable occupancy limits. The tenant must have written notice of the limits when the agreement is signed, and be notified of any limits if they are adopted afterward. If the limits are substantial, they only go into effect if the tenant agrees in writing. A minimum of two people per bedroom must be allowed. (90.262(3)) Other factors which determine how many people can live in a rental include:

• the size of the bedrooms;
• the overall size of the dwelling;
• any discriminatory impact on any of the protected classes

If the landlord imposes unreasonable or discriminatory occupancy limitations, the tenant should contact an attorney or the Oregon Bureau of Labor and Industries.

Rules and Regulations

The landlord may adopt rules concerning the tenant's use and occupancy of the premises. (90.262)
It is best to have all agreements in writing for future reference. Rules and regulations are enforceable only if:

• their purpose is to promote the convenience, safety or welfare of tenants; to protect the landlord's property from abuse; or to provide for the fair distribution of services or facilities to tenants;
• they are reasonably related to their purposes;
• they apply to all tenants fairly;
• they are clear enough to inform the tenant of what is expected;
• they are not for the purpose of evading the landlord's obligations; and
• the tenant has notice of the rules or regulations when making the rental agreement or when the rules are adopted.

If a rule is adopted after the tenant has entered into the rental agreement, or if it makes a "substantial modification" to the tenant's "bargain" (e.g., it makes a real difference in the value of the tenancy to the tenant), the rule is not effective unless the tenant has consented to it in writing. (90.262(2)) If the tenant does not disagree to the rule in writing and pays rent to the landlord, the courts have ruled that the tenant tacitly agrees to the rule.

Examples of such addenda are smoke detector agreements, pet agreements, yard and lawn care, etc.

Note:  A month-to-month tenant can be evicted with a 30-day "no cause" notice after refusing to consent to a new rule, unless the eviction is retaliatory or otherwise unlawful. (See Retaliation, and Discrimination.)

"Drug and Alcohol Free Housing"

Within the Act, this term refers to a specific type of housing where each of the units on the premises is occupied by at least one tenant who is a recovering alcoholic or drug addict. The person must be actively participating in a program of counseling and rehabilitation. (90.243)

To qualify as "drug and alcohol free housing," the landlord must be a non-profit corporation or housing authority and must provide:

• a drug and alcohol free environment;
• monitoring of tenant compliance;
• individual and group support for recovery;
• access to a specified program of recovery.

The rental agreement must be in writing and must provide that:

• tenants are not to use or possess alcohol or drugs on or off the premises;
• tenants' guests shall not use or possess alcohol or drugs on the premises;
• tenants are to participate in a specified recovery program;
• the landlord is to receive written quarterly reports about a tenant's program; and
• the landlord may require a tenant to take a test for drug or alcohol use at the landlord’s discretion and expense.

If a tenant fails to comply with the terms of a drug or alcohol free housing agreement, the tenant may be evicted upon 48-hours written notice from the landlord.

Disclosures

The following items must be disclosed to both applicants and tenants before entering into a rental agreement:

Ownership

Tenants must be informed in writing of the name and address of:

• any person authorized to manage the premises; and
• the owner or person authorized to act on behalf of the owner to receive tenants’ notices and demands, and to be served with summons and complaint.
• The address to send mail to relating to the tenancy

This information must be kept current. If this disclosure is not made, the person who acted as landlord (e.g. the manager or agent) may be held liable for the landlord’s obligations under the Act (90.305).

Legal Proceedings

If the property has no more than four dwelling units, the tenant must be notified if there are pending legal proceedings, such as foreclosure. Specifically, if the property is subject to any of the following, the tenant must receive written notice before the rental agreement is completed:

• Any outstanding notice of default under a trust deed, mortgage or contract of sale, or notice of trustee’s sale under a trust deed;
• Any pending suit to foreclose a mortgage, trust deed or vendor’s lien under a contract of sale;
• Any pending declaration of forfeiture or suit for specific performance of a contract of sale; or
• Any pending proceeding to foreclose a tax lien.

If the tenant moves as a result of the above circumstances and they were not disclosed, the tenant may recover twice the actual damages or twice the monthly rent, whichever is greater, and all prepaid rent, in addition to any other remedy that the law may provide. (90.310)

Lead-based Paint

Sellers and landlords of all housing built before 1978 must provide a disclosure with all known information about lead based paint and a pamphlet that provides details regarding the health risks associated with the paint. (42 U.S.C. 4852(d))

Penalty: Tenants may seek damages up to three times the amount of injury and $10,000 in federal court if the landlord fails to provide the disclosure and the pamphlet.

“Meth Labs”

Homes that have been used to manufacture illegal drugs such as methamphetamine can be toxic and a health hazard. It is illegal for a landlord to rent or sell a property that has been deemed unfit for use because of illegal drug manufacturing. The only exception to this is if the landlord discloses that the property has been deemed unfit for use and cannot be lived in until it is determined safe by the state. (453.864)

Penalty: The tenant can end the tenancy upon finding out that the landlord did not disclose this information, and the landlord must return prepaid rent and deposits.

Utilities Which Benefit the Landlord and Other Tenants

The landlord must disclose in writing whether the tenant will be paying for any utilities or services (e.g. electricity, gas, oil, water, hot water, heat, air conditioning, garbage collection or disposal) which will benefit the landlord or other tenants. This is determined if a utility or service paid for by the tenant is delivered to any area other than the tenant’s unit. (90.315(2))

Penalty: The tenant may recover twice the actual damages or one month’s rent, whichever is greater, if the landlord fails to disclose this in writing at or before the beginning of the rental agreement.

What the Agreement Cannot Include

The Act prohibits anything which waives the rights given to the tenant by the Act. For example, a landlord cannot rent a unit “as is” to evade their legal obligations. (90.245) The Act also provides remedies for other “unconscionable” or grossly unfair provisions. The following types of terms are prohibited and unenforceable:

• Any and all terms that waive any of the tenant’s rights or remedies under the Act; (90.245(1)(a))
• “Lockout:” switching locks while a tenant is out of the unit. The only way to evict a tenant is through the courts; (90.435), (90.375)
• “Landlord’s lien:” a lien in which the landlord may hold a tenant’s property if the tenant defaults on the rent; (90.420)
• “Confession of judgment:” a clause in which the tenant gives up the right to be heard in court by granting the landlord the right to a judgment against the tenant before the landlord has even filed a lawsuit; (90.245(1)(b))
• “Exculpation or limitation of liability:” the tenant agrees not to sue the landlord for negligence or not to sue for more than a given amount; (90.245(1)(c))
• Agreement to pay attorney fees if a dispute ends up in court: the Act already provides that attorney fees and court costs may be charged against the losing party. (90.255)

Penalty: The tenant may recover actual damages and a penalty of up to 3 months’ rent if the landlord deliberately includes such a provision(s) in the rental agreement and attempts to enforce it. (90.245(2))

Transfer of Possession

Transferring possession is when access to the property is given either from the landlord to the tenant or vice versa. (90.147) Transfer of possession may be different from the ending date of a rental agreement (e.g.. if a tenant abandons the property or if there is an eviction proceeding). (See “Evictions”)

Transfer of possession from the landlord to the tenant occurs when the landlord gives actual notice (written or verbal) that the tenant has the right to occupy the rental. The notice may include delivery of the keys.

Transfer of possession from the tenant to the landlord occurs when:

• the tenant gives written notice that he/she has given up the right to occupy the rental. The notice may include the return of keys;
• the landlord reasonably believes that the tenant no longer claims the right to live in the rental after the ending date of the tenancy;
• the landlord reasonably knows that the tenant has abandoned the rental.

Inventory and Condition Reports

Much time is spent in court disputing the condition of a unit and the deductions from security deposits. Performing an inspection gives both parties exact knowledge of the condition of the unit, and helps to prevent future misunderstandings which could lead to the landlord withholding the deposit. (See Recovering the Deposit)

The landlord is not required to inspect the unit when you move in or out. However, do an inspection with the landlord if possible, and note in writing all damage, disrepair, and dirt. If the landlord is unavailable, ask a friend to help.

If the landlord promises to make any alterations, repairs, or other work, it should be detailed in the written agreement and initialed by both parties.

If you discover any problem after moving in, put in writing and send a copy to the landlord to amend the move-in documentation.

**See Appendix A for a checklist of items to review before signing a lease.**