Selling a Rental Property With a Tenant in Oregon

Short answer

In Oregon, a sale does not by itself end a tenancy. The new owner generally steps into the existing lease, and the security deposit follows the tenancy. Showings need 24-hour entry notice under ORS 90.322. A buyer who plans to occupy the unit may, after the first year, end a periodic tenancy using a qualifying landlord reason notice under ORS 90.427(5) - typically 90 days with statutory relocation assistance. Fixed-term leases generally have to be honored to the end of the term.

When this comes up

This comes up when an owner decides to list a tenant-occupied property, when a broker is taking a listing with a tenant in place, when a buyer wants to know whether the tenant will stay or leave, when a property manager is asked to coordinate showings and a lease handoff, and when the new owner wants vacant possession at or shortly after closing. It also comes up when a tenant hears the property is being sold and asks what happens to their lease.

Key things sellers and brokers should check

1) Tenancy type - fixed-term vs. month-to-month. 2) Buyer's plans - investor vs. owner-occupant. 3) Whether the tenancy is past the first year. 4) The rental agreement, addenda, and any signed disclosures. 5) The deposit ledger and rent payment history. 6) Any local ordinances that may apply (for example Portland's relocation-assistance rules). 7) How showings will be coordinated and noticed. 8) How the deposit will transfer at closing and how the tenant will be told who to pay next.

Oregon rules to review

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 ORS 90.155 / 90.150 (notice delivery and counting days). Local rules - such as Portland's relocation-assistance ordinance - may layer additional requirements on top of state law.

Practical seller and broker workflow

1) Pull the lease, addenda, deposit ledger, and rent payment history before listing. 2) Tell the tenant in writing that the property is being listed. 3) For each showing, deliver a written 24-hour entry notice that states date, time window, and purpose. 4) For investor buyers, prepare a lease assumption package (lease, addenda, deposit ledger, disclosures). 5) For owner-occupant buyers after the first year, evaluate the ORS 90.427(5) qualifying landlord reason notice path - 90 days plus relocation assistance where required. 6) At closing, transfer or credit the deposit and provide the tenant a written change-of-ownership letter with new payment instructions. 7) Document every notice, entry, and handoff.

Common mistakes

Treating the sale as automatically ending the lease; entering for showings without 24-hour notice; treating the listing agreement as blanket authority to enter; promising a buyer vacant possession at closing without a valid notice path; using a no-cause notice during the first year; skipping the relocation-assistance payment when required; closing without a written deposit transfer; and not telling the tenant who to pay rent to going forward.

Related forms and documentation

Common pieces include the 24-hour notice to enter for each showing, a tenant-occupied listing disclosure, a lease assumption package for investor buyers, a qualifying landlord reason notice under ORS 90.427(5) for owner-occupant buyers, the deposit transfer at closing, and a change-of-ownership letter to the tenant. Propsistant helps map the workflow and document direction - it does not supply official legal forms.

Common Oregon questions

Related Oregon resources

• Oregon Resource Center
• Oregon Termination and Eviction Rules
• Oregon Security Deposit Assistant
• Oregon Landlord Entry and Notice Rules
• Oregon Landlord-Tenant Law Hub

Continue research

• Oregon Resource Center
• Oregon Landlord-Tenant Law Hub
• Ask Propsistant