OTLA Trial Lawyer Spring 2021

31 Trial Lawyer • Spring 2021 system that can assist landlords by paying up to 80% of the back-rent owed, with stipulations. Landlords like Sharon rely on the rental income to pay the mortgage or other bills. While the renter protections allows tenants to keep a roof over their heads, it may inadvertently harm small- er landlords. However, HB 4401 has established a fund to assist landlords fi- nancially effected by the pandemic while trying to strike a balance between renter protections and the financial needs of landlords. In all cases, it is important to note this is not rent forgiveness. HB 4401 does not address whether tenants owe any balance to the state after the state pays the landlord for rent money owed. Not a perfect system From a landlord’s perspective, HB 4213 created more issues than it solved. When the governor and the Legislature originally enacted the renter protections, they drafted them very broadly with no requirements that tenants prove they were unable to pay rent. This has allowed some to game the system. For instance, Bruce is a landlord who rented a unit this past summer to tenants who were gain- fully employed. When they moved in, the tenants immediately told him they were taking advantage of the renter pro- tections and refused to pay rent. Under HB 4213, Bruce’s hands were tied. He could not evict based upon non-payment of rent or take any steps to force the ten- ants to prove they actually needed the protections. The renter protections did not include a proof element, meaning a tenant had no responsibility to prove they could not pay rent. Conversely, I have represented nu- merous tenants who took advantage of the renter protections and began receiv- ing “for-cause” eviction notices from their landlord. Some landlords tried to get around the renter protections by is- suing questionable for-cause notices. In one case, I represented a couple, Raul and Jennifer, who rented a house for many years without issue and never received a violation notice. After they invoked their rights under the renter protections, the landlord started issuing violation notices for alleged violations. I have spoken to many tenants who have the same com- plaints. Over the past year, I have represented several of what I call “accidental” land- lords. Generally, an accidental landlord is someone who let a friend or relative who was having a hard time live at their house. One couple, Rhonda and Jerry, had no idea they created a landlord/ten- ant relationship when they let their friend move in following the friend losing his job. They did not intend to have a tenant. I had to tell them they were now land- lords and could not evict their friend without cause, even for non-payment of rent. Now, they are stuck with a former friend who is living rent-free in their spare bedroom. While it is not a perfect system, the new changes under HB 4401 are a good compromise that allows for continued renter protections with more resources for landlords. The pandemic affected everyone in different ways. The renter protections allowed many tenants to keep their housing when they lost employ- ment through no fault of their own. Given the well-known issues with people receiving unemployment, the renter protections protected them. However, the lack of rent financially harmed many landlords. The new changes try to bal- ance these competing interests. Let’s hope everyone can get back to work and put these laws in the history books. Paul Thompson focuses his practice on landlord/tenant matters, representing both landlords and tenants. He contributes to OTLA Guardians at the Rising Star level. His office is at 806 SW Broadway, Ste. 1200, Portland, OR 97205. You can reach him at paul@ltlpdx.com or 971-258- 0562.