The Impact of Oregon's Senate Bill 722 on Landlords: What You Need to Know

Introduction

Oregon's Senate Bill 722, introduced in 2025, brings significant changes to the residential rental market. This legislation aims to regulate rent-setting practices and reduce the duration of rent increase exemptions for new dwellings. As a landlord, understanding these changes is crucial to navigating the evolving landscape. In this article, we'll explore the key effects of Senate Bill 722 on landlords and provide insights on how to adapt.

Prohibition on Rent-Setting Software

One of the most impactful provisions of Senate Bill 722 is the prohibition on using certain software to set rents or occupancy rates. This change aims to prevent unfair rent increases and ensure a more transparent rental market. For landlords, this means:

• Manual Rent Adjustments: Landlords will need to manually adjust rents, which can be time-consuming but ensures compliance with the new law.

  
  

• Increased Administrative Work: Without automated software, landlords may face increased administrative tasks, requiring more attention to detail and accurate record-keeping.

  
  

Reduction in Rent Increase Exemption Duration

The bill also reduces the duration that new dwelling units are exempt from caps on residential rent increases from 15 to 7 years. This change has several implications for landlords:

• Shorter Profit Window: Landlords will have a shorter period to maximize profits before rent increase caps apply, potentially affecting long-term financial planning.

  
  

• Need for Strategic Planning: Landlords must develop strategic plans to optimize rental income within the new 7-year exemption period.

  
  

Statutory Damages for Affected Tenants

Senate Bill 722 establishes statutory damages available to tenants or applicants affected by non-compliance. This provision emphasizes the importance of adhering to the new regulations:

• Potential Financial Penalties: Non-compliance can result in significant financial penalties, making it essential for landlords to stay informed and compliant.

  
  

• Enhanced Tenant Rights: Tenants have more robust protections, which may lead to increased scrutiny of landlord practices.

Adapting to the New Regulations

To successfully navigate the changes brought by Senate Bill 722, landlords should consider the following strategies:

• Stay Informed: Regularly review updates on the legislation and seek legal advice to ensure compliance.

  
  

• Optimize Operations: Implement efficient administrative processes to manage rent adjustments and tenant communications.

  
  

• Engage with Tenants: Foster positive relationships with tenants by being transparent about rent changes and addressing concerns promptly.

  
  

  

  
  

Conclusion

Oregon's Senate Bill 722 introduces significant changes that landlords must navigate carefully. The biggest negative effect for tenants that I see is that bills like this are forcing landlords to higher professional management or sell to someone that pays for professional management, which forces landlords to raise rents more than they would have had to otherwise.

Share Your Opinion: To share your opinion about this bill with your representative, you can find your state representative's contact information here.