New Oregon 2025 Landlord Laws Review: Impact on Landlords and Real Estate Investors
- Christian Bryant
- Jul 25
- 12 min read
Updated: 4 days ago
The 2025 Oregon Legislative Session: Key Changes for Landlords and Real Estate Investors
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The 2025 Oregon legislative session introduced significant changes for landlords and real estate investors, particularly in manufactured home parks, tenant protections, and affordable housing. Key actions include updating forms for compliance with eviction, deposit, and notice requirements, revising policies for rent caps and nondiscrimination, and budgeting for costs like water testing or tenant compensation. Investors should leverage tax exemptions and funding opportunities while preparing for increased administrative burdens.
Overview of New Oregon 2025 Landlord Laws
This article reviews the specified bills (HB 2078, HB 2814, HB 3031A, HB 3054A, HB 3144, HB 3378, HB 3521A, HB 3522A, HB 3525B, HB 5036A, SB 1149A, SB 51B, SB 586A, SB 599A, SB 690B, SB 814A, SB 973, and SB 1036). For each bill, we outline its original intent, legislative changes, the final draft, and specific impacts on landlords and real estate investors, including required changes to policies, forms, or business practices. The analysis draws on the document and information from the Oregon Legislative Information System (OLIS) https://olis.oregonlegislature.gov and other sources listed and linked at the end. This guide helps Oregon landlords and investors navigate the new regulatory landscape.
HB 2078: Extension of Property Tax Exemption for Multiunit Rental Housing
Original Presentation
Introduced in January 2025, HB 2078 aimed to extend the sunset date for property tax exemptions for multiunit rental housing, originally set to expire. The goal was to encourage continued investment in such developments. The bill sought to maintain tax incentives without additional requirements.
Legislative Changes
Amendments: No significant amendments were noted, as the bill’s scope was straightforward. Real estate groups likely supported the extension to maintain financial incentives.
Final Draft: Extends the sunset date for the property tax exemption for multiunit rental housing. Takes effect on the 91st day following adjournment sine die (September 29, 2025).
Impact on Landlords and Investors
Policy Changes: No immediate policy changes are required, as the bill extends an existing exemption.
Forms: No form updates are necessary.
Business Practices: Investors in multiunit housing benefit from continued tax relief, enhancing project viability and encouraging development or maintenance of rental properties without added compliance costs.
HB 2814: Childcare Facility Requirement Waivers
Original Presentation
Introduced in February 2025, HB 2814 proposed allowing the Department of Early Learning and Care (DELC) to waive certain requirements for certified childcare facilities. This aimed to expand availability, particularly in rental communities. It also directed the Early Learning Council to set rules for child numbers and age groups in registered family childcare homes.
Legislative Changes
Amendments: The bill saw minor clarifications to ensure waivers protect child welfare and parental interests, with an emergency declaration for immediate implementation.
Final Draft: Authorizes DELC to waive requirements for certified childcare facilities upon good cause, provided child welfare and parental interests are protected. Directs the Early Learning Council to define rules for child numbers and age groups in registered family childcare homes. Declares an emergency, effective on passage (June 27, 2025).
Impact on Landlords and Investors
Policy Changes: No direct policy changes for most landlords, though those with onsite childcare facilities must align with DELC rules.
Forms: No form updates are required unless managing childcare facilities within rental properties.
Business Practices: Investors in properties with childcare facilities may benefit from increased flexibility, potentially attracting family tenants. No significant operational changes are needed for most landlords.
HB 3031A: Housing Infrastructure Financing
Original Presentation
Introduced in January 2025, HB 3031 proposed establishing a program through the Oregon Infrastructure Finance Authority (OIFA) to fund infrastructure (e.g., roads, pipes) supporting housing development. The aim was to boost housing supply.
Legislative Changes
A-Engrossed Version: Amendments established the Housing Infrastructure Project Fund and prioritized urban areas, with an emergency declaration for immediate effect.
Final Draft: Establishes a program for OIFA to provide financial assistance for infrastructure supporting housing development. Creates the Housing Infrastructure Project Fund. Declares an emergency, effective July 1, 2025.
Impact on Landlords and Investors
Policy Changes: No direct policy changes for existing landlords, but developers must align projects with OIFA funding criteria.
Forms: Development applications may need infrastructure funding requests, but this does not affect rental operations.
Business Practices: Investors in new developments can access funding, reducing project costs and encouraging expansion. Existing landlords are unaffected unless developing new properties.
HB 3054A: Rent and Sales Restrictions in Manufactured Home Parks and Marinas
Original Presentation
Introduced in February 2025, HB 3054 aimed to limit rent increases and sales constraints in manufactured home parks and marinas. It proposed a 5% cap on rent increases and restrictions on aesthetic or inspection requirements for home sales.
Legislative Changes
A-Engrossed Version: The rent cap was raised to 6% after landlord advocacy highlighted financial impacts. An exception for tenant-approved infrastructure upgrades was added, with an emergency declaration for clarity.
Final Draft: Caps rent increases at 6% for rental spaces in larger facilities starting in 2026, with exceptions for tenant-approved infrastructure upgrades. Prohibits landlords from requiring aesthetic improvements or internal inspections as conditions of sale. Declares an emergency, effective September 1, 2025.
Impact on Landlords and Investors
Policy Changes: Landlords of manufactured home parks or marinas must cap rent increases at 6% and revise sales policies to eliminate aesthetic or inspection requirements.
Forms: Lease agreements and sales contracts must reflect the 6% rent cap and remove prohibited conditions.
Business Practices: Investors face reduced revenue growth due to rent caps, though upgrade exceptions provide flexibility. Sales processes must be streamlined, potentially increasing turnover but reducing aesthetic control.
HB 3144: Prohibiting Bans on Mobile Homes and Extending Dispute Resolution Programs
Original Presentation
Introduced in January 2025, HB 3144 sought to prohibit new bans on manufactured dwellings or prefabricated structures in planned communities. It also aimed to extend funding for dispute resolution programs in manufactured home parks and marinas.
Legislative Changes
Amendments: The sunset date for dispute resolution programs was extended to 2031 after stakeholder input emphasized ongoing need.
Final Draft: Prohibits new recorded instruments or governing documents in planned communities from banning manufactured dwellings or prefabricated structures. Extends the sunset to January 2, 2031, for Housing and Community Services Department grants for low-income tenant dispute resolution and the Manufactured and Marina Communities Dispute Resolution Advisory Committee.
Impact on Landlords and Investors
Policy Changes: Landlords in planned communities cannot enforce new bans on manufactured dwellings, requiring review of governing documents.
Forms: Community rules and covenants must be updated to comply with the prohibition.
Business Practices: Investors may see increased demand for manufactured homes, diversifying tenant bases. The extended dispute resolution program supports low-income tenants, indirectly stabilizing tenancy.
HB 3378: Non-App Key Access for Tenants
Original Presentation
Introduced in March 2025, HB 3378 proposed requiring landlords to offer non-electronic access methods (e.g., physical keys) for dwelling units to ensure habitability. This addresses reliance on tenant-owned devices.
Legislative Changes
Amendments: No significant amendments, as the bill’s scope was narrow. Landlord feedback framed it as an educational issue.
Final Draft: Requires residential landlords to offer a non-electronic access method for dwelling units to be considered habitable. Effective January 1, 2026.
Impact on Landlords and Investors
Policy Changes: Landlords must ensure units offer physical key access, reviewing electronic lock systems.
Forms: No form changes required, per ORHA, but tenant communications should confirm access options.
Business Practices: Landlords using app-based locks may need to install physical key backups, incurring minor costs. Investors should budget for retrofitting to enhance accessibility.
HB 3521A: Damages for Breaching Rental Agreement Promises
Original Presentation
Introduced in February 2025, HB 3521 aimed to penalize landlords for breaching agreements to rent habitable units in exchange for holding deposits. It proposed a four-day refund period and statutory damages.
Legislative Changes
A-Engrossed Version: The refund period was extended to five days after tenant advocacy sought flexibility. Penalties were clarified, with exemptions for acts of God.
Final Draft: Requires landlords to pay minimum damages for breaching agreements unless the deposit is returned within five business days or excused by an act of God. Effective January 1, 2026.
Impact on Landlords and Investors
Policy Changes: Landlords must ensure prompt deposit refunds (within five days) or face penalties, requiring stricter agreement processes.
Forms: Update reservation form to reflect the five-day refund period and include penalty language.
Business Practices: Landlords face increased financial risk for delays, necessitating streamlined processes. Investors should train staff to avoid penalties.
HB 3522A: Eviction of Squatters
Original Presentation
Introduced in January 2025, HB 3522 proposed clarifying eviction processes for squatters by defining them in ORS 90.100(47) and allowing the use of existing termination notices.
Legislative Changes
A-Engrossed Version: The bill explicitly referenced ORS 90.100(47) in eviction notices for legal clarity, with no major opposition.
Final Draft: Allows eviction of squatters as defined in ORS 90.100(47). Requires updating unauthorized occupants form and instructions. Effective January 1, 2026.
Impact on Landlords and Investors
Policy Changes: Landlords can evict squatters using standard processes, simplifying property recovery.
Forms: Update unauthorized occupants form to include “or you are a squatter as defined in ORS 90.100(47).” ORHA advises adapting forms by January 1, 2026.
Business Practices: Landlords benefit from clearer legal pathways, reducing vacancy losses. Investors should train staff on updated eviction procedures.
HB 3525B: Well Water Testing for Rental Units
Original Presentation
Introduced in March 2025, HB 3525 proposed requiring landlords with units in groundwater high-risk areas to test well water for contaminants in rental units using exempt wells in groundwater quality management areas. Click here to view the specific areas
Legislative Changes
B-Engrossed Version: Amendments specified contaminants (arsenic, coliform bacteria, lead, nitrates) and delayed implementation to 2027 for rule adoption by the Oregon Health Authority.
Final Draft: Requires landlords to test well water for arsenic, coliform bacteria, lead, and nitrates in units using exempt wells in groundwater quality management areas. Operative January 1, 2027.
Impact on Landlords and Investors
Policy Changes: Landlords with affected properties must implement water testing protocols by 2027.
Forms: Lease and maintenance forms should include water testing documentation by late 2026.
Business Practices: Landlords face testing costs, significant for rural properties. Investors should budget for compliance and consider well upgrades.
HB 5036A: Oregon Real Estate Agency Budget
Original Presentation
Introduced in April 2025, HB 5036 proposed allocating $15,880,210 for the Oregon Real Estate Agency (OREA) budget for the 2025–2027 biennium.
Legislative Changes
A-Engrossed Version: No major amendments, as the bill focused on budgetary approval with broad support.
Final Draft: Allocates $15,880,210 for OREA for the biennium. Effective immediately (June 27, 2025).
Impact on Landlords and Investors
Policy Changes: No direct policy changes, as the bill funds OREA operations.
Forms: No form updates required.
Business Practices: Stable OREA funding ensures continued regulatory oversight, with no immediate impact on operations.
SB 1149A: Building Codes Board Membership
Original Presentation
Introduced in January 2025, SB 1149 (assumed SB 0049A) proposed adding a fire protection engineer and a structural engineer specializing in residential buildings over three stories to the Building Codes Structures Board.
Legislative Changes
A-Engrossed Version: The bill clarified engineer qualifications under ORS 672.107, with no significant opposition.
Final Draft: Adds a fire protection engineer and a structural engineer (certified under ORS 672.107, specializing in residential buildings over three stories) to the Building Codes Structures Board. Effective September 29, 2025.
Impact on Landlords and Investors
Policy Changes: No direct policy changes, as the bill affects building code governance.
Forms: No form updates required.
Business Practices: Developers of high-rise rentals may face updated codes, but impacts are minimal for most landlords.
SB 51B: Affordable Housing Property Management Funding
Original Presentation
Introduced in February 2025, SB 51 (assumed SB 0051B) proposed requiring the Housing and Community Services Department (OHCS) to fund property management for affordable housing and establish a preservation program.
Legislative Changes
B-Engrossed Version: The bill added a sunset date of June 30, 2027, and focused funding on the Housing Development Center, Inc., with an emergency declaration.
Final Draft: Requires OHCS to distribute funds to the Housing Development Center, Inc., for affordable housing property management. Establishes a program to coordinate and report on affordable housing preservation, including manufactured dwelling parks and marinas. Declares an emergency, effective July 1, 2025.
Impact on Landlords and Investors
Policy Changes: No direct policy changes, but landlords managing affordable housing may access funding.
Forms: No form updates unless participating in funded programs.
Business Practices: Investors in affordable housing, especially parks or marinas, may benefit from management support, reducing costs.
SB 586A: Reduced Notice Period for Selling Rental Units
Original Presentation
Introduced in March 2025, SB 586 proposed allowing landlords to reduce the eviction notice period from 90 to 60 days when selling a rental unit to a buyer intending to occupy it, with optional tenant compensation.
Legislative Changes
A-Engrossed Version: The bill eliminated the separate sale requirement and clarified exemptions for Eugene and Portland. Compensation was set at one month’s rent.
Final Draft: Allows landlords to pay one month’s rent to reduce the termination notice period from 90 to 60 days when selling a unit to a buyer who will reside in it. No exemptions in Eugene or Portland. Effective September 29, 2025.
Impact on Landlords and Investors
Policy Changes: Landlords can expedite sales by offering compensation, but must comply with local rules in Eugene and Portland.
Forms: Update qualified landlord reason for no-cause termination form to include the 60-day notice option with compensation language.
Business Practices: Landlords gain flexibility in sales, but compensation costs may offset benefits. Investors should weigh costs against faster turnover.
SB 599A: Prohibiting Discrimination Based on Immigration Status
Original Presentation
Introduced in February 2025, SB 599 aimed to prohibit landlords from discriminating based on a tenant’s or applicant’s immigration or citizenship status, with statutory penalties.
Legislative Changes
A-Engrossed Version: Amendments clarified prohibited actions and set a 30-day operative period post-passage.
Final Draft: Prohibits landlords from inquiring about or discriminating based on immigration or citizenship status, rejecting applicants based on documentation type, or disclosing status for improper purposes. Operative July 27, 2025.
Impact on Landlords and Investors
Policy Changes: Landlords must revise screening processes to avoid immigration-related inquiries, ensuring compliance to avoid penalties.
Forms: May need to update application and screening process forms/requirements.
Business Practices: Landlords face increased scrutiny and penalties, requiring staff training on fair housing. Investors should audit screening criteria.
SB 690B: Delayed Evictions for Families with Newborns
Original Presentation
Introduced in January 2025, SB 690 proposed delaying eviction trials for nonpayment for families receiving health-related housing support. This prioritizes funding for young children.
Legislative Changes
B-Engrossed Version: Amendments extended the delay to 90 days and added a sunset of September 28, 2027, with an emergency declaration.
Final Draft: Requires courts to delay residential eviction trials for nonpayment for 90 days following defendants’ motion and declaration of health-related housing supports. Requires OHCS to prioritize funding for children under 12 months and report on unsheltered children. Operative September 1, 2025, sunsets September 28, 2027.
Impact on Landlords and Investors
Policy Changes: Landlords must adjust eviction timelines for eligible tenants, particularly families with infants.
Forms: Still being determined by legal counsel, most likely won’t be clear until final administrative rules are released.
Business Practices: Landlords face delayed evictions, impacting cash flow. Investors should train staff and monitor OHCS funding impacts.
SB 814A: Rental Assistance for Youth
Original Presentation
Introduced in March 2025, SB 814 proposed modifying eligibility for a long-term rental assistance program for individuals under 25, targeting adjudicated youth exiting programs.
Legislative Changes
A-Engrossed Version: Amendments expanded consultation requirements for program design, with no major opposition.
Final Draft: Modifies eligibility criteria for the long-term rental assistance program for individuals under 25, expanding consultation with individuals and entities. Effective June 27, 2025.
Impact on Landlords and Investors
Policy Changes: No direct policy changes, but landlords may see increased tenant applications from eligible youth.
Forms: No form updates required.
Business Practices: Investors may benefit from stable tenancies due to rental assistance, with minimal operational impact.
SB 973: Notice Requirements for Expiring Affordability Restrictions
Original Presentation
Introduced in February 2025, SB 973 proposed amending notice requirements for landlords of publicly supported housing regarding expiring affordability restrictions. This includes extending notice periods.
Legislative Changes
Amendments: The notice period for existing tenants was extended from 20 to 30 months, with rules to be adopted by OHCS by December 1, 2025.
Final Draft: Requires landlords of publicly supported housing to notify applicants and new tenants of expiring affordability restrictions. Extends the minimum notice to existing tenants from 20 to 30 months. Applies to restrictions ending on or after July 1, 2028. Effective September 29, 2025.
Impact on Landlords and Investors
Policy Changes: Landlords of publicly supported housing must provide extended notices, requiring updated processes.
Forms: Lease agreements and tenant notices must include affordability restriction details per OHCS rules.
Business Practices: Investors face increased administrative burdens but benefit from clear notification guidelines, reducing disputes.
SB 1036: Towing Regulation Changes
Original Presentation
Introduced in January 2025, SB 1036 aimed to limit independent towing by towers and clarify parking rules for tow vehicles in rental properties.
Legislative Changes
Amendments: Minor clarifications ensured towers must be contacted by property owners, with no significant opposition.
Final Draft: Limits a tower’s authority to independently tow vehicles, clarifies tow vehicle parking, and prohibits canvassing for tows within 1,000 feet of a lot. Effective September 29, 2025.
Impact on Landlords and Investors
Policy Changes: Landlords must directly coordinate towing, ensuring compliance with new restrictions.
Forms: Parking and towing policies in lease agreements may need updates.
Business Practices: Landlords gain control over towing but face increased responsibility for coordination, potentially reducing unauthorized tows.
Conclusion
The 2025 Oregon legislative session introduced significant changes for landlords and real estate investors, particularly in manufactured home parks, tenant protections, and affordable housing. Key actions include updating forms for compliance with eviction, deposit, and notice requirements, revising policies for rent caps and nondiscrimination, and budgeting for costs like water testing or tenant compensation. Investors should leverage tax exemptions and funding opportunities while preparing for increased administrative burdens. For full bill texts and updates, visit the Oregon Legislative Information System https://olis.oregonlegislature.gov. Consulting legal or real estate professionals is recommended to ensure compliance.
Sources
Oregon Legislative Information System (OLIS): https://olis.oregonlegislature.gov
LegiScan Oregon 2025 Regular Session Dashboard: https://legiscan.com/OR
Statesman Journal, “These are some of major bills that passed during the 2025 Oregon Legislature”: https://www.statesmanjournal.com
ACLU of Oregon, 2025 Legislative Session Report: https://www.aclu-or.org
