Last night, Governor Kate Brown issued Executive Order 20-56, extending the ban on terminations without cause or for nonpayment. The executive order (EO) does not apply to commercial properties. An exception to the EO allows landlords to give tenants 90-day notice after accepting an offer from a buyer that intends to use the home as a primary residence. This rule does not apply to a tenant with a lease in place, which would require a buyer to honor that contract. Landlords that planned a "no-cause" eviction before the moratorium took effect on April 1 will be able to give 30-day notice effective December 31. In the short term, this measure provides much-needed relief for struggling tenants. Unfortunately, for landlords carrying a mortgage, there is no such relief from making payments.
Undoubtedly some landlords were planning to sell that have been impacted by the eviction ban. Considering the strong tenant-rights stance Governor Brown has taken, it seems unlikely the ban will expire on December 31. Planning and knowing the current rules has never been more critical if you consider selling a tenant-occupied investment property. Please let me know if you have any questions about selling a rental property or becoming a landlord.
