Oregon Senate Bill 611: Effective Immediately, New Restrictions on Rent Increases

Dear Multifamily NW Members,

On July 6, 2023 Governor Kotek signed Senate Bill 611, which further restricts Housing Providers’ rights to increase rent at their properties. Due to an emergency provision, SB 611 became effective on July 6, 2023 and enacts the following restrictions on rent increases:

• Housing Providers may only raise rent once in any 12-month period.
• Unless an exemption applies, rent increases may not exceed the lesser of either:
  • 10% or
  • 7% plus the published Consumer Price Index (CPI).¹¹
• If a Housing Provider terminates a tenancy without cause in the first year of occupancy, the maximum amount of rent that may be assessed to the subsequent renter in that unit may not exceed the maximum amount the Housing Provider could have charged the terminated tenancy. 

SB 611 does not amend or otherwise change the existing exemptions to rent control. Consequently, Housing Providers may still increase rent by more than the limit discussed above if the first certificate of occupancy was issued less than 15-years prior to the rent increase or the property is regulated as affordable and all other regulatory requirements are followed. 

However, the new restriction limiting rent increases to once per year after the first year applies to all properties. This includes those that qualify for exemptions to rent increase limits. 

Because this is an emergency measure, all rent increase notices issued on or after July 6, 2023 must comply with these new rules. SB 611 expressly does not apply to rent increases that were sent prior to it being signed into law by the Governor. Please contact your landlord/tenant law attorney if you have any questions regarding any of these changes.

This article is a general overview of the new law but is not an exhaustive explanation of all rules related to rent increase or other areas of law. Please obtain the advice of an attorney for any policy changes or decisions regarding your legal compliance matters.