How does selling a rental property with a tenant work in Oregon?

Short answer

In Oregon, the lease and the security deposit usually travel with the property. A tenant-occupied sale generally means honoring the existing lease, giving proper entry notice for showings, transferring the deposit at closing, and - if the buyer plans to live in the unit - serving a qualifying landlord reason notice with relocation assistance under ORS 90.427. The exact path depends on the tenancy type, the buyer's plans, and timing.

When this comes up

This question comes up when an owner decides to list a tenant-occupied rental, when a broker is taking a listing with an existing tenant, when a buyer wants to know whether the tenant will stay, and when a property manager is asked to coordinate showings or a lease assumption package. It also comes up after closing when the new owner wants to occupy the unit.

Oregon rule or source to check

ORS 90.322 (landlord entry, including for showings), ORS 90.300 (security deposit obligations that follow the tenancy), ORS 90.427 (no-cause and qualifying landlord reason terminations, including buyer-occupancy after the first year), and the rental agreement itself. Local rules - for example Portland's relocation-assistance rules - may layer on top of state law.

Practical workflow

1. Practical workflow. 1) Confirm the tenancy type (fixed-term vs. month-to-month) and the buyer's plans (investor vs. owner-occupant). 2) Plan showings with 24-hour entry notice for each visit. 3) For investor buyers, assemble a lease assumption package: signed lease, addenda, deposit ledger, payment history, disclosures. 4) For owner-occupant buyers after the first year, check whether a 90-day qualifying landlord reason notice under ORS 90.427(5) is appropriate, along with any relocation assistance. 5) At closing, transfer or credit the deposit and notify the tenant in writing of the new owner and payment instructions.
2. Common mistakes. Treating the lease as terminated by the sale; entering for showings without 24-hour notice; promising a buyer the tenant will be out by closing without a valid notice path; skipping the relocation-assistance step where required; closing without a written deposit transfer; and not telling the tenant who to pay rent to going forward.
3. Related forms or workflows. Common pieces include the entry notice for each showing, a lease assumption package for an investor buyer, a qualifying landlord reason notice for an owner-occupant buyer, the deposit transfer at closing, and a written change-of-ownership letter to the tenant. Propsistant helps identify the workflow and document direction - it does not supply official legal forms.

Common mistakes

Related forms or workflows

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Propsistant provides educational information and workflow guidance. It is not a law firm and does not provide legal advice.

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