Oregon legislature approves HB 3851 regulating landlord tenant termination notice requirements

House Bill 3851, introduced in the Oregon State Legislature on February 27, 2025, aims to reform tenant protections in the state, particularly in situations where landlords intend to sell their properties. The bill seeks to address the growing concerns surrounding tenant displacement and housing stability amid rising real estate transactions.

One of the key provisions of HB 3851 mandates that landlords provide tenants with a separate notice if they intend to sell the property. This notice must inform tenants that their tenancy may be terminated upon the acceptance of a sale offer. Additionally, landlords are required to specify the reason for termination and provide at least 90 days' notice before the tenancy ends. Notably, landlords must also compensate tenants with an amount equal to one month’s rent at the time of delivering the termination notice, although this requirement does not apply to landlords with four or fewer residential units.

The bill has sparked significant debate among lawmakers and stakeholders. Proponents argue that it enhances tenant rights and provides necessary protections against sudden evictions, particularly in a volatile housing market. Critics, however, express concerns that the bill may discourage property sales and complicate the rental market, potentially leading to unintended consequences for both landlords and tenants.

Economic implications of HB 3851 could be substantial, as it may influence rental prices and availability in Oregon's housing market. Experts suggest that while the bill aims to protect tenants, it could also lead to increased costs for landlords, which may ultimately be passed on to renters.

As the bill progresses through the legislative process, its future remains uncertain. If passed, it could set a precedent for similar tenant protection measures in other states, reflecting a growing trend toward prioritizing housing stability in the face of economic pressures. The Oregon State Legislature is expected to continue discussions on HB 3851 in the coming weeks, with potential amendments and further debates likely to shape its final form.