Oregon Month-to-Month Lease Agreement

Month-to-Month Leases in Oregon

An Oregon month-to-month rental agreement automatically renews each month unless properly terminated with written notice. While this lease frees both parties from long-term obligations, strict laws apply. 

Upon signing an Oregon month-to-month lease agreement, the landlord and tenant are bound by state rental laws. These regulations and legal provisions govern these short-term leases in Oregon. 

Lease Termination & Renewal

• In most areas of Oregon, landlords can provide 30-day no-cause eviction notices to month-to-month tenants within the first year of occupancy. 
• Portland, Milwaukie, and other jurisdictions mandate 90 days’ notice in that initial year. 
• After a tenant’s first year in a unit with a month-to-month rental agreement, landlords wishing to terminate must give 90 days written notice alongside one of Oregon’s qualifying reasons, like substantial repairs or personal occupancy by the owner. 
• The termination notice must specify the reason, relevant facts, and exact date the tenant must vacate at least 90 days later. 
• Suppose the landlord owns four or more Oregon residential units. In that case, they must pay the tenant one month’s rent for qualifying reasons when serving the 90-day termination notice. 

Rent Increases

• The landlord legally can’t raise the rent during the first year of a month-to-month tenancy. 
• After a tenant occupies the unit for a full year, the landlord may raise the rent in the future with 90 days’ advance written notice. 

Security Deposit

• Oregon caps security deposits at one month’s rent or 1.5x monthly rent if allowing pets. If the deposit equals over half a month’s rent, landlords can’t also require the last month’s rent upfront. 
• Landlords must deposit deposits into separate trust accounts within 30 days, detailing the account location. 
• Tenants must receive condition reports listing damages at move-in and move-out.
• Within 31 days after tenants vacate, deposits with legitimate deductions must be returned, or tenants may recover twice the wrongfully withheld amount. 
• Allowable deductions from the security deposit include unpaid rent and tenant-caused damages but not normal wear and tear, routine maintenance, or preexisting issues noted on the initial report.
• When charging labor over $200, landlords must provide documents proving that the labor costs are reasonable. 

Tenant Rights

• Right to habitable housing meeting local and state housing, health, and safety standards, including functional essential utilities.
• Right to formally request needed repairs to issues threatening habitability standards.
• Right to be provided advance written notice before landlords enter the rental unit.
• Right to review and agree to conditions assessments before move-out to avoid improper deposit deductions.
• Right to have security deposits returned within 31 days after vacating unless legitimately applied toward unpaid rent or documented damages.

Required Disclosures

Oregon law requires landlords to make certain disclosures to tenants before entering into a month-to-month rental agreement. These disclosures inform tenants about important aspects of the rental unit and property.

• Lead paint: If the property was constructed before 1978, federal law requires landlords to disclose the presence of known lead-based paint and lead-based paint hazards before tenants sign the lease.
   
• Smoking policy: This disclosure requires lease agreements to state whether smoking is prohibited on the premises, allowed on the entire premises, or allowed in limited areas.
  
• 100-year floodplain: Landlords must disclose if the property is in a 100-year flood plain in the lease agreement.