Oregon’s rental laws carry more rules and nuance than most owners realize. We deal with them every day here at RidgeLine Property Management, and we see owners get tripped up by the same issues over and over. Getting these wrong can mean invalid notices, surprise relocation payments, or penalties up to three months’ rent. Here are five laws we think every Central Oregon owner needs to understand.
1.) Rent Increase Caps
Oregon caps annual rent increases at 7% plus CPI, with a hard ceiling of 10%. For 2026, the max is 9.5%. However, the cap does not apply to properties where the first certificate of occupancy was issued less than 15 years ago. With all the new builds around Bend and Redmond, this exemption is relevant to a lot of owners in our market. Also, manufactured home parks with more than 30 spaces now have a separate lower cap of 6% under HB 3054. Know the age of your property and check the published rate every year before issuing any increase.
2.) The 12-Month Occupancy Rule
Under ORS 90.323, you cannot increase rent during the first year of tenancy, and after that you can only increase it once per 12-month period. The key here: the clock is tied to occupancy, not the lease term. If you sign a tenant to a 10-month lease, you still can’t raise rent until 12 months of occupancy have passed. On top of that, any increase requires 90 days’ written notice. So plan ahead — if you want to raise rent at the 12-month mark, that notice needs to go out by month 9. For more on how we approach setting the right rental rates, check out our guide.
3.) Termination Notices: Under vs. Over 12 Months
During the first year of occupancy, you can end a tenancy with a 30-day no-cause notice. No reason needed, no relocation payment required.
After the first year, no-cause terminations are off the table. You can only terminate for cause or for a “Qualifying Landlord Reason” (QLR) — things like selling to an owner-occupant, a family member moving in, demolition, or a major remodel. QLRs require a 90-day written notice stating the reason and facts. One exception: if you live on a property with two or fewer units (duplex, house with ADU), you can issue a 60-day no-cause notice after the first year.
4.) Relocation Assistance
If you terminate after the first year using a QLR, you generally must pay the tenant one month’s rent as relocation assistance along with a 90-day notice. One recent change worth noting: under Senate Bill 586 (effective September 2025), if you’re selling a unit to a buyer who will occupy it as their primary residence, you can now give a 60-day notice instead of 90 days, as long as you still pay one month’s rent in relocation assistance. There’s also an exemption for owners with an interest in four or fewer units in Oregon — so smaller Central Oregon investors may not owe relocation at all. But if you own five or more units, budget for it. Getting the notice wrong can result in penalties up to three times the monthly rent plus damages and attorney fees.
5.) Service Animal Deposits
Under ORS 90.300(4), you cannot charge a pet deposit for a service animal or companion animal (emotional support animal) that a tenant with a disability needs as a reasonable accommodation. No pet fee, no pet rent, no additional deposit. You also can’t apply breed or size restrictions or require the animal to be “certified.” The tenant is still on the hook for any damage the animal causes — you can deduct that from the standard security deposit like any other tenant-caused damage. For more on how deposits and insurance requirements work together to protect owners, see our recent article.
These laws change regularly. At RidgeLine Property Management, we stay on top of all of this so our owners don’t have to. If you have questions about how any of these rules apply to your property in Bend, Redmond, or anywhere in Central Oregon, reach out — we’re here to help.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult with a qualified landlord-tenant attorney before making legal decisions regarding your rental property.