All About Rent

The tenant's first obligation is to pay the rent. Rent is payable without demand or notice at the time and place agreed to by you and the landlord. Unless otherwise agreed, rent is payable at the rental unit at the beginning of any term of one month or less, or in equal monthly installments if the rent term is more than a month. (90.220(6)(a))

If there is no rental agreement, the rent is the fair rental value of the unit. (90.220(5))

Prorating

In a monthly agreement where the tenant moves in on the 10th of the month, the next rent would be due on the 10th of the next month, and so forth. However, most landlords will prorate the rent. For example, a tenant who moves in on the 10th of a month when rent is payable on the 1st should pay rent only from the 10th to the end of that month. The landlord may choose to get the first month's rent in full, and then prorate the next month. The daily rate can be calculated by multiplying the monthly rate by 12, then dividing by 365.

A month-to-month tenant who moves out in the middle of the month after a 30-day notice has been given also owes a prorated rent through the date of the notice. (90.427(3), 90.380)

Work in Exchange for Lower Rent

The landlord and tenant may agree for the tenant to perform specific maintenance tasks and minor repairs. The agreement and terms must be:

• in writing;
• a fair exchange;
• in good faith; and
• not for the purpose of evading any habitability standards.

Note:   The landlord cannot say "you get cheap rent if you promise not to complain about conditions." (90.320(2))

Rent Increases

Landlords may increase rent with a 7-day written notice for weekly tenants, and with a 30-day written notice for monthly agreements. (90.220(6)(a))

In a lease, rent may be increased only at the end of the term, with 30-days notice, when the lease is renewed.

Late Charges

Late charges cannot be incurred unless the written rental agreement provides for late charges. When the agreement so provides, the landlord must specify the date rent is due, the date late charges begin to accrue, and the type and amount of the late charge.

The three types of late fees are (90.260(2))

• a per-rental-period fee (flat fee): a flat amount charged only once per rental period, whether rent is paid on the 6th or the 31st. The amount is based on the normal amount charged by landlords;
• a per-day fee: accrues every day until rent is paid, and is limited to 6% per day of the flat monthly late fee;
• a 5-day period fee: charged once for each late 5-day period and is limited to 5% of the rent payment.

Nonpayment of a late charge alone cannot be the basis of a "72-Hour" or "144-Hour" eviction notice for nonpayment of rent. (90.260(6)) However, failure to pay a late fee can be a basis for eviction for cause. (90.260(6), 90.400(1)) Also, the landlord may charge interest on unpaid late fees.

Utilities and Services

Determine with your landlord who is responsible for establishing and paying for utility services. Unless the tenant and landlord agree otherwise, the tenant will have to pay for services.  Contact information for most utility numbers can be found online or in the front of the phone book.

Payment of your utility bills can affect your credit rating, so tenants should be sure to keep up-to-date on all payments. A landlord can also evict a tenant for failure to maintain utility service.

Note:  If some of the utilities the tenant pays for benefit the landlord or another tenant, the landlord must disclose this fact in writing. (See “Disclosures” )

If a utility deals with a customer in a manner which is unfair or unlawful, direct your complaints to the Public Utility Commission (PUC) in Salem (See Appendix B for contact information). PUC regulations restrict the right of a private utility to terminate service for nonpayment, especially where a resident’s health is affected.

Paying the Landlord for Your Utilities

In some cases, and if the rental agreement allows it, the landlord may cover the cost of utilities for the tenant or for common areas, and then require the tenant to pay the landlord for those costs.

The charges are distinct from rent, and the method the landlord uses to allocate the charges should be clear. If the method used isn't described in the written rental agreement, you can require the landlord give you a copy of the utility bill as a condition of paying the charges. (90.315(4))

Low Income Assistance

One source of help for low income households to deal with escalating heating costs is the federally funded Low Income Energy Assistance Program (LIEAP).

There is also the Oregon HEAT program, an emergency energy assistance program. Assistance is available only during the winter months, and only for people who are about to have their services cut off. Each county has assistance available for different utilities.

The Public Utility Commission has a telephone assistance program for help with telephone connections and bills. They can assist the deaf and mobility-impaired to get specialized telephone equipment.

Note: For contact information for any of these agencies, see Appendix B

Low income individuals should also contact their local utility companies for more information. Many utility companies offer a payment plan whereby customers can pay equal monthly installments for service rather than be hit with expensive bills only during winter.

Unpaid Utilities

If you are unable to obtain utility service because the landlord or the prior tenant failed to pay bills, you have several possible remedies. (90.315)

If you have not yet moved into the dwelling, you may:

• pay the outstanding amount and deduct it from the rent;
• enter into an agreement to have the landlord resolve the lack of service; or
• terminate the rental by giving the landlord actual notice of termination and the reason for termination.

If the agreement is terminated, the landlord must return all rents, fees and deposits within 4 days. (90.315(5b))

If you have already moved into the dwelling, you may:

• pay the outstanding amount and deduct it from the rent;
• enter into an agreement to have the landlord resolve the lack of service; or
• terminate the rental by giving the landlord 72 hours actual (verbal or written) notice prior to the date of termination.

If the landlord restores or makes the utility service available to the tenant within 72 hours, the tenancy does not terminate.

If the agreement is terminated, the landlord must return all rents and fees within 4 days. Any security deposit must be returned within 31 days. (90.315(6), 90.300)

The tenant may also recover actual damages suffered as a result of the utility shutoff. (90.315(6))

If the landlord is responsible for the cost of utilities, and if services are disconnected as a result of a failure to pay, you may pay the outstanding balance and deduct the amount from the rent, or you may terminate the rental agreement with 72 hours notice. The tenancy does not terminate if the landlord restores service during the 72 hours. (90.315(7))

Gas and Electricity

You should notify the local utility a few days before moving in to arrange for the gas and electricity to be turned on.

New customers may have to provide basic background information (e.g., name, address, Social Security Number), or will be asked to submit credit references from other utilities or creditors, or find a co-signer. If you have an outstanding bill with the utility, the utility may ask for a deposit.

Heating Oil

Heating oil companies are listed in the yellow pages of the phone book. The rate charged will depend upon the size of your tank and the amount ordered. Your landlord can explain the mechanics and size of the furnace and tank. Clarify how much fuel is in the tank, whether you are responsible for keeping fuel in the tank, and how you will get credited for remaining fuel when you move out.

Some landlords may require tenants to keep the tank full to avoid costly clogs of the fuel injector. This should be included in the rental agreement. Some oil companies will provide "keep-full" service for automatic delivery.

Water/Sewer

The landlord usually provides water in apartment rentals but not in houses. While the tenant might pay for the actual service, the landlord is obligated to provide at least access to a water supply. Contact the local water district for service.

Garbage and Recycling

The landlord usually provides garbage service for apartments but not for houses. The landlord has the ability to waive that duty in writing with the tenant. However, cities may adopt local ordinances which require landlords to provide the can and removal service despite any written agreement. The City of Portland has such an ordinance.

The Residential Landlord Tenant Act requires that the landlord at least provide receptacles (90.320(1)(g)). In Portland, the Act (90.320(1)(g)) and a City Ordinance (29.30.140) require the landlord to pay for garbage service for at least 30 gallons each week for both single and multi-family dwellings where individual container service is provided. If tenants need more garbage service, they may pay for it.

Landlords of apartment complexes with five or more units must also supply adequately-sized recycling containers for four of the five principal recyclable materials. They must provide regular collection service, notify the tenants annually of the location of the containers and notify new tenants about the recycling. (90.318) This only applies to complexes in the cities that have implemented multi-family recycling services.

Telephone

If a customer has an outstanding bill with the utility, they may have to pay a deposit up to the equivalent of two month's worth of estimated service, based on past usage. The customer has a choice of available service (e.g., call waiting, voice mail, etc.). Each option costs differently, and should be ordered with care to avoid any surprises on the bill.

Through "supersedure," a new tenant may be able to avoid the high installation charges. If a new tenant moves into a place that has satisfactory phone service, they may transfer the service to their name if both they and the former tenant agree. The account must not have any restrictions on it (e.g., no long distance capability). The new tenant then takes the responsibility for any old phone bills.

Insurance

Check with the landlord about what their insurance covers. It is possible, and usually affordable, to purchase renter's insurance to insure valuable personal property.

Some landlords have policies, which make the tenant liable for damage, especially fire. Tenants may be held liable for damage caused by their negligent or intentional conduct, and tenants should check the landlord's policy.

The Landlord is liable for damage to tenant property if the damage occurred because of landlord negligence or noncompliance with living standards. The liability cannot be waived.

Tenant Rights & Responsibilities

Responsibility for maintaining a decent dwelling and a good rental relationship is shared by the landlord and tenant. Tenants must:

• use the unit only as a dwelling, and not as a business (unless the landlord agrees in writing), and not for illegal activities; (90.340)
• use the parts of the unit (kitchen, bath, etc.) as they should be used;
• keep areas under their control clean, sanitary, and free from accumulation of debris, garbage and filth;
• use facilities such as electric, heat and plumbing in a reasonable manner;
• not deliberately or negligently damage or remove, or knowingly allow others to damage or remove, any part of the premises;
• conduct themselves and visitors in a manner that will not disturb the neighbors (tenants are responsible for the actions of their guests, and parents for the actions of minors (30.765); (90.325(9)))
• test smoke alarms at least once every 6 months and replace batteries as needed. (479.275, 90.325(6)) and not remove or tamper with a properly functioning smoke alarm. (90.325(8))

Many communities have local codes restricting noise that can be heard outside the dwelling to certain hours. The rental agreement may also have additional rules and regulations. Tenants should carefully read through the agreement before signing.

Harassment

Tenants have a right to live in a home that is free from harassment. (90.375) The landlord may not unlawfully remove or exclude the tenant from the rental, or willfully diminish services such as heat, running water, electricity or other essential services. The landlord also must not seriously attempt or threaten to do the above prohibited actions.

Penalty: The tenant may get a legal order to recover possession of the unit or may end the rental agreement and recover up to 2 months' rent or twice the actual damages, whichever is greater. This is extremely difficult to prove and requires very good documentation.

Notice of Tenant's Absence

The rental agreement may require the tenant to give actual notice to the landlord of any expected absence of more than 7 days. Notice should be given no later than the first day of the absence.

The purpose of this requirement is to insure the maintenance of any systems that need regular attention (e.g., heat), to protect against theft, and to guarantee that the landlord will not think the unit has been abandoned. (90.340)

Penalty: The landlord may recover actual damages if the tenant deliberately fails to notify the landlord of an extended absence. The landlord can also enter the dwelling for routine maintenance if "reasonably necessary" or for an emergency. (90.410)

Subleasing

A written rental agreement may prohibit subleasing (when a tenant temporarily rents a unit or part of a unit to another person) without the landlord's written permission.

If the agreement prohibits subleasing, and if the original tenant does sublease and the landlord does not knowingly accept rent from the unauthorized tenant, then the landlord may give a 24-hour eviction notice to the unauthorized tenant. (90.403) (105.105-105.168)

Unauthorized Roommates

If the original tenant has an unauthorized roommate, the landlord may give a month-to-month renter a 30-day "no cause" termination notice, or a "for cause" notice in the case of a lease, which states the violations and the opportunity to correct the problem in the case of a lease. (See Evictions)

The landlord may simply demand that the unauthorized roommate go through the normal application process.