Portland city commissioners will decide on a policy rule for rental housing. Next week they will discuss whether to roll back parts of a tenant protection ordinance to settle a lawsuit brought by a group of landlords. A city attorney told commissioners they should take the settlement in order to avoid the risk of future lawsuits. An approval by the commissioners means that landlords would no longer have to follow the rule.
What is the rule? The rule required landlords to provide renters upon move-in with an inventory of property — like appliances, fixtures or equipment — that would be covered by their security deposit. The relevant policy passed in 2020 as part of a broader suite of tenant protections.
The Fair Access in Renting ordinances, approved by the City Council in 2020, established several new rules designed to protect tenants and create better access to rental housing. They included new restrictions on background checks, advertising vacant rentals and income requirements. The City Council will vote on the settlement on June 29.
In short, landlords were barred from dipping into security deposits to repair or replace items not included in the list. In addition, landlords could only charge for the depreciated value of that item rather than the cost of a brand-new replacement The Fair Access in Renting ordinances, approved by the City Council in 2020, established several new rules designed to protect tenants and create better access to rental housing. They included new restrictions on background checks, advertising vacant rentals and income requirements. The City Council will vote on the settlement on June 29.
A couple of landlords and the apartment industry group Multifamily NW, sued over the rule. Among the issues raised in the lawsuit were complaints that the ordinances were too vague and didn’t inform landlords of how to comply with the new rules. Rights advocates jumped into the fray. Renters’ rights advocates told media that the proposed changes were unsettling and weren’t disclosed to the public until late last week.
The security deposit issue is well known my many renters. Security deposits are typically paid at the start of a tenancy and are meant to cover damage to a rental beyond typical wear and tear. They are supposed to be returned when the renter moves out if nothing is damaged.
Portland Tenants United has taken up the cause of support renters. In practice, landlords often attempt to charge tenants for things the tenants shouldn’t have to pay for. But in order to contest those charges, tenants have to take their landlords to small claims court — a barrier for many low-income renters or tenants who are undocumented.
Going the court route can result in tenants losing thousands of dollars they need for their next home or when they move out. The depreciation schedule was one of the core components of the policy. The settlement would also reduce penalties paid by landlords found to have violated the tenant protection rules. Landlords previously could be charged as much as up to two times the deposit amount, plus attorney fees. Under the settlement they would pay $250 per violation.
