Oregon lawmakers discuss possible cap on rent hikes

Oregon lawmakers are going back and forth on a potential bill in the upcoming legislative session that would put a cap on how much landlords can raise rent. And they’re getting plenty of advice on the issue.

Currently, the bill is still being drafted, and no decisions have been made.

The bill takes issue with the speed at which rents are rising.

A cap on rental hikes would attempt to stop that. Landlords would only be able to increase rent by a certain percentage each year. Right now, tenant advocates are pushing for a 5 percent annual cap on rent hikes, while landlords want a higher cap, saying more regulations will push people out of the rental business.

Terry Luelling, vice president of the Central Oregon Rental Owners Association, said Thursday not all landlords are hiking rates unreasonably, and a rent cap could get in the way of fixing the housing crisis.

“Entrepreneurs, investors, landlords are going to solve this issue,” Luelling said. “But if they over-restrict that and regulate us, then they’ll kill that industry, and we’ll not fix that problem. So my advice is to be very careful with the amount of increase they allow.”

The bottom line though, is both sides will have to work together, said the group’s president, Melody Luelling.

“Each side needs each other. We need them, they need us,” she said. “We need to work together on this thing and not have it be so polar opposite. There needs to be a common ground.”

Currently in Bend, the average rent is just under $1,200 per month..

Looking back five years, in November 2013, the average rent for a one-bedroom apartment was $826 per month. In November of 2018, it was $1,189.

That makes it nearly a 44 percent increase in five years.

Last July, a report found the average Oregonian can no longer afford a one-bedroom apartment and still cover other expenses without making at least $36,000 a year.

Oregon’s legislative session will begin on Jan. 22.