3 Surprising Things Portland Landlords Learned the Hard Way – Part 1
Being a landlord can be an incredibly rewarding experience. When working with a knowledgeable property management company, the life of being a real estate investor can truly fill you every single day with satisfaction. However, everything in life has a learning curve to it.
Here are five things Portland real estate investors and landlords have come to us with at InterWest Properties that took them by surprise:
1. Tenants Make Decisions Guided By Their Emotions
It’s easy to look at all of the data available to you as a real estate investor and conclude that a price increase in rent is justified. Any smart investor knows that markets have a tendency to go up, but that even when they go down, good data can always present creative solutions and hedges against disaster.
One thing data often overlook, however, is the emotional aspect of the rental process. When tenants are searching for a property, they are not typically making that decision from a practical place. They aren’t usually looking for a “3 bedroom dwelling with optimized energy efficiency”. What they’re looking for is a home. And that makes the decision an emotional one.
Whether is the neighborhood they choose, the color of the walls, the type of shower or tub, or whether the rental price ends in a 5 or 7—renters can be incredibly rewarding, but also fickle in their reasoning.
When it comes to dealing with tenants on any issue, it’s important to have someone in your corner who can consult with you on the proper language, notifications, and legal boundaries which need to be navigated. Tenants who receive information about their lease or renewals in the appropriate language have a tendency to respond positively. Tenants who feel slighted or caught off guard can make any number of emotional decisions.
At InterWest, we’re here to help you navigate the waters of communication with tenants so that all parties remain happy and any scuffles are dealt with appropriately.
2. The Eviction Process Must Be Executed Flawlessly
Fortunately, most rental agreements are written to protect the landlord. Having that signed contract in your files can feel comforting and certainly, it is a necessity, when it comes to any investment property. At some point in your real estate investment career, however, there will likely come the point in which you’ll need to actually enforce something in that signed rental agreement. And that’s where things can get tricky if not handled properly.
It’s important that all paperwork and notices to the tenant are filed in the appropriate order, using language that will bode well in court. Eviction is an excellent tool for managing trouble tenants and maintaining the integrity of your property, but there are steps that must be followed to maintain the advantage as landlord.
The last thing you want is to lose months in rental income in court because a judge rules in the tenants favor on a technicality. Our team of eviction experts at InterWest Properties is always available to help you navigate any kind of eviction proceedings to make sure the process runs smoothly. If you are in need of assistance or have questions about the eviction process in Portland, please reach out to our team, today.
3. Landlords in Portland May Have to Pay a Tenant’s Relocation Fees
As a landlord in Portland, rent increases over 10-percent or above in a calendar year can result in a tenant notifying you that they are leaving. You as the landlord must pay money to them for the purposes of relocating. Failure to do so can result in huge fines and penalties.
The same thing goes with a tenant who has a lease coming to an end in Portland. Traditionally, a landlord might issue a no-cause notice to terminate tenancy for any number of reasons. Now, however, the property owner is required to pay relocation assistance to take back control of their own rental property—even though the lease terms have come to a contractual end.
The Tenant Relocation Assistance fees are as follows:
- Studio or Room — $2,900 in relocation assistance owed to tenant
- 1-bedroom — $3,300 in relocation assistance owed to tenant
- 2-bedroom — $4,300 in relocation assistance owed to tenant
- 3-bedroom and above — $4,500 in relocation assistance owed to tenant
Learn More about Portland Rent Control, here: What is Rent Control?