For the past 12 yeqrs I’ve rented out my condo to the same couple. They're great tenants.He’s retired and she still works.

I’ve always held the rent below market. Currently they’re $300-$500 below market for the 2-bedroom , 2-bath townhouse.. Recently, there was an assessment issued by the condo association which will result in HOA dues of $520/ mo up from the previous fee of $270/mo. The total assessment is 33k.

They rent the condo for $1000/mo. My costs are $1113/mo. The new costs starting August 1 will be

$1265/mo-which is still $150-$235 under market. The condo is in a popular area of Portland ,OR . A new state law requires that I notify the tenant 90 –days before any rent increase. This law is the result of apartment complex landlords raising their rates high and forcing tenents to leave or be evicted. I’d consider selling, but my accountant tells me I’d have a

$45 ,000 capital gains issue to address. . I have approx. $100,000 in equity.

I like the tenants and want to retain them. But...my costs & the market demand higher rent.

I want to increase the rent to cover my note. Then have increases of 3-4% annually thereafter.

I am thinking of hiring a property management co. to maintain it. What would you do?

So you are currently losing money on the rental? Is this something that you want to hold onto for retirement or something?

Negative cash flow should never happen. It is an alligator that will eat you up.

If the market will bear more rent and you need it to pay your bills.......why do you want to subsidize their life style.

Hi George.. from S. Oregon

So changes in March for the whole of Oregon

Rents:

Oregon Governor Brown signed HB-4131 on March 15th, 2016. All rental increases now require a 90 day notice.

For month-to-month tenancies, no rent increases for the first year.

This was part of a brokered agreement on a variety of issues, for LL’s this was actually a win considering what the ‘Tenant’s Union’ wanted to start.

Smoking:

Also HB-4131 the non-compliance fee for tenants smoking in or on property or area will increase from $50 to $250

George perhaps look on the State's website for the new ORS 90. for LL/tenant law..

The rental market is good right now so I'd raise it to market in 90 days and if they balk tell them to leave and re rent.

Why should you subsidize someone's life style?

What Chris say... letter. 90 day notice new rental amount. Pay it Quit,

I appreciate the feedback I've received. I want the condo to be a retirement income stream.I'll raise the rent to $1300/mo

My question is should I mail the new lease agreement

effective Aug.1 and include the reasons for the increase? Or