Selling Tenant-Occupied Properties in Portland - What Every Landlord Should Know
At Campbell Salgado Real Estate Group, we regularly work with Portland landlords who are navigating how to sell a property while it's still tenant-occupied. It can be done—but it takes planning, good communication, and an understanding of Portland’s specific rental laws.
Let’s walk you through what that looks like with an example.
Meet Sam (and His Dilemma)
Sam owned a rental in Portland and was nearing the end of a fixed-term lease with his tenant. He figured this would be a good time to list the home. But when he started looking into the details, he realized selling with a tenant in place in Portland isn’t always simple.
Here’s why:
Portland’s No-Cause Termination Rules (and Relocation Assistance)
In most parts of Oregon, landlords can end a fixed-term lease when it expires without much more than proper notice. But Portland has additional protections for tenants. If a landlord ends a lease without cause, the city requires:
A 90-day written notice, and
Relocation assistance payments (amount varies by unit size).
This applies whether the lease is month-to-month or fixed-term.
And yes—even if you’re selling the property.
Exemptions to Portland’s Relocation Rules
There are situations where a landlord might not be required to pay relocation assistance. For example:
If the landlord or an immediate family member is moving into the unit as a primary residence (must happen within 60 days and last at least 12 months)
If the unit is part of an owner-occupied duplex or has an ADU and the owner lives on-site
If the unit is being sold or converted, and the tenant was notified in writing before move-in that the lease would not be renewed (this is called Exemption 12)
Week-to-week tenancies or short-term leases with certain building permits
Most of these exemptions require landlords to submit a Relocation Exemption Application (REA) to the Portland Housing Bureau before ending a tenancy.
If the paperwork isn’t filed properly and on time, relocation assistance could still be required—even if the exemption technically applies.
Sam’s Options
Sam had a few choices:
Sell with the tenant in place — This can work if the tenant is cooperative and the buyer is an investor. But showings, inspections, and appraisals can be more complicated.
Wait until the tenant moves out — This allows for better staging, more flexibility, and often a quicker sale. But it may mean waiting for the lease to end, or navigating relocation rules.
Offer incentives — Some landlords negotiate an early move-out with tenants by offering financial incentives or help with moving expenses.
Advice for Landlords in Portland
If you’re thinking about selling a tenant-occupied property in Portland, here are a few tips:
Know the law before you act. Don’t rely on how things work in other states or counties. Portland’s rules are unique.
Document everything. If you plan to use an exemption, make sure you notify the tenant properly and file with the Portland Housing Bureau.
Consider your buyer pool. A home with a tenant in place may appeal to investors, but not to traditional buyers who want to move in right away.
Talk to an expert. A knowledgeable real estate broker (like us!) can walk you through the process, help you avoid pitfalls, and connect you with a landlord-tenant attorney if needed.
For more detailed information on Portland's Tenant Law, including the mandatory renter relocation assistance, please refer to the official Mandatory Renter Relocation Assistance page on the Portland government website or visit the official Oregon State Legislature website for more information on Oregon's Tenant Law.
Please note that while we strive to provide helpful insights, this blog post is not legal advice. Laws and regulations can be complex and vary widely. We recommend consulting with a legal professional specializing in Oregon real estate and tenant law for advice tailored to your specific situation. This ensures the most accurate and applicable guidance for your real estate decisions.
At Campbell Salgado Real Estate Group, we believe in empowering our clients with knowledge.
Whether you're a potential landlord or a tenant, understanding these laws can help you make informed decisions and plan accordingly. If you're diving into the rental market, whether as a landlord or a tenant, feel free to call or text us at 503-951-8547 for guidance. Let's navigate these waters together, with a clear understanding and a strategy that works for everyone involved.
