Legislation aimed at landlords who tack on excessive charges

SALEM - A bill that would rein in abusive rental fees has cleared a legislative committee and is headed to the Senate floor for a vote.

In a work session at the Capitol on Thursday afternoon, Senate Bill 771 was unanimously approved by the five members of the upper chamber's Consumer Protection and Public Affairs Committee.

If approved by the full Senate, the bill will be taken up by a House committee.

SB 771 was introduced at the request of the Landlord-Tenant Coalition, a group of renters' advocates and property management representatives. Among other things, the measure would tighten up language in the Oregon Landlord-Tenant Act that allows landlords to charge fees for any "specific reasonably anticipated landlord expense."

The proposed changes address a number of criticisms aimed at "red door landlord" Kip Schoning of Corvallis. Schoning's company, Bula Enterprises, manages more than 150 rentals around the mid-valley, many of them with red doors.

A number of fees charged by Schoning would be eliminated by the new language, including a $200 upfront "lock-change fee." The $50 fees assessed by Schoning for delivering 72-hour or 144-hour eviction warnings also would be outlawed, as would the $50 fees he charges tenants for appearing against them in eviction proceedings.

Court records show Schoning and Bula Enterprises have initiated more than 800 formal eviction cases in the last 15 years.

Landlords would still be allowed to charge fees for a short list of reasons, including late rent payments, bounced checks and tampering with smoke alarms. Property managers also could still require deposits to ensure that tenants take good care of rental units.

For landlords, the measure would clear up some issues regarding temporary occupancy agreements and the disposition of property left behind by deceased renters.

SB 771 also would give month-to-month renters some protection from retaliatory evictions by requiring landlords to give at least 60 days' notice, rather than 30, for a "no cause" eviction.

An amendment is in the works for that provision, however. At the request of real estate brokers, the bill's authors have agreed to include an exemption in the House version of the bill for rental properties sold to buyers who want to occupy the premises.

"We're willing to make that compromise," coalition member John Vanlandingham told the Senate committee.

Bennett Hall can be reached at 758-9529 or bennett.hall@lee.net.