Abandoned Property In Oregon: Legal Guidelines, Fees, and Procedures

When a tenant abandons a rental unit in Oregon, landlords are required to follow specific steps outlined by the Oregon Revised Statutes (ORS) to ensure compliance with the law. Failure to follow these guidelines can expose landlords to legal liabilities. 

This guide outlines what constitutes abandoned property, landlord obligations, procedures for dealing with abandoned belongings, and legal fees related to abandonment.

What Is Considered as Abandoned Property in Oregon?

In Oregon, property is considered abandoned if the tenant leaves it behind when vacating the rental unit without notifying the landlord. According to ORS 90.425:

• Abandonment occurs when a tenant leaves the unit without notice and without removing personal belongings within a reasonable time.
• A unit may also be considered abandoned when the tenant fails to pay rent or ceases occupying the unit for an extended period (ORS § 90.425(3)).

Landlords are required to provide notice before disposing of or selling the tenant's belongings, to ensure that tenants are given a fair opportunity to reclaim their property.

Legal Obligations for Landlords Under Oregon Law

Under Oregon Law, landlords have specific obligations when dealing with abandoned property. These include providing notice, safely storing the items, and following strict procedures for disposal if necessary.

1. Notice of Abandonment
   Landlords must notify tenants that their property has been abandoned. The notice must include:
• A statement that the property is abandoned.
• A request for the tenant to reclaim the property by a certain date.
• A warning that the landlord will dispose of or sell the property if it is not reclaimed.
  According to ORS 90.425, landlords must send this notice to the tenant’s last known address, or the forwarding address provided by the tenant, via first-class mail or personal delivery.
2. Responsibility for Safe Storage
   Landlords are required to store the abandoned property for a reasonable period, ensuring that the property is not damaged or sold without the tenant’s consent. Landlords cannot dispose of or sell the property immediately after receiving notice. They must allow at least 8 days for the tenant to contact them regarding retrieval (ORS 90.425(3)).
3. Disposal of Property
   After the notice period has passed, if the tenant does not reclaim the property, the landlord may either:
• Sell the items and apply the proceeds to any unpaid rent or damages (ORS 90.425(4)).
• Dispose of the property if deemed necessary.

3 Steps to Address Abandoned Property in Oregon

In Oregon, O.R.S. § 90.425 sets forth clear procedures for landlords to handle abandoned personal property. These steps ensure that the landlord complies with legal obligations and protects their rights while dealing with the abandoned property.

Step 1: Providing Written Notice

The first action a landlord must take when personal property is abandoned is to provide notice to the tenant or any interested parties (such as a lienholder or owner). The written notice serves as an official declaration that the property is considered abandoned and outlines the tenant’s rights and obligations regarding their personal property.

• The notice must be delivered via one of the following methods:
1. Personally delivered to the tenant.
2. First-class mail sent to the tenant's last known address (including post office boxes and forwarding addresses).
• The written notice must include the following:
1. Declaration of Abandonment: The landlord must state that the personal property is considered abandoned.
2. Date to Retrieve Property: The tenant, lienholder, or owner must contact the landlord to retrieve the property by a specified date.:

• The notice must provide a minimum of 8 days after mailing for general personal property.
•  If the property includes a manufactured dwelling, floating home, or RV, the notice period must be at least 45 days.

1. Location of Property: The notice should include where the abandoned personal property is stored. If the property is a manufactured dwelling or floating home, it must be stored on the rented space.
2. Contact Information: The notice must provide the landlord's contact information (address or phone number) where the tenant or owner can arrange for the property’s removal.
3. Reasonable Access for Removal: The landlord will make the personal property available for removal by appointment during reasonable times.
4. Payment for Removal/Storage: If the personal property is considered abandoned, the landlord may require payment for removal and storage before releasing the property. However, if the property is abandoned post-eviction, the landlord cannot require payment for storage charges before releasing the property.

Step 2: Safeguarding and Storing the Property

Once the landlord has provided proper notice, the landlord must take reasonable steps to safeguard and store the abandoned property. Depending on the nature of the property, this can include:

• Inventory and Documentation: The landlord should create an inventory list of the items left behind to keep accurate records.
• Storage Requirements: The property should be stored in a safe location. For larger items like manufactured homes or floating homes, they must be stored on the rented space where they were originally located.

Step 3: Disposal or Sale of Property

After the notice period ends, and the tenant has failed to reclaim the property, landlords may:

• Sell the property: Any proceeds from the sale can be applied to unpaid rent, cleaning fees, or damage costs (ORS 90.425(4)).
• Dispose of the property: If the property is not worth selling, landlords may dispose of it. However, landlords must follow Oregon law to ensure proper handling and avoid legal repercussions.

Abandonment Fees: Guidelines and Limitations

When a tenant abandons a rental unit without cause under a fixed-term lease, Oregon landlords are allowed to charge an abandonment fee.

• Maximum Abandonment Fee: This fee can be up to 1.5 times the monthly rent amount.
• Restrictions on Further Claims: Once an abandonment fee is charged, the landlord cannot recover unpaid rent for the remaining term of the lease beyond the date they became aware of the abandonment.
• Waiving Right to Damages: By charging the abandonment fee, the landlord also forfeits the right to recover damages related to any vacancy while trying to re-rent the unit.

These rules are designed to give both landlords and tenants a fair process when dealing with abandoned rental property (as outlined in Oregon Revised Statutes (O.R.S.) § 90.425).

Mitigating Damages and Re-Renting the Property in Oregon

When a tenant abandons a rental property in Oregon, the landlord has a responsibility to mitigate damages and make reasonable efforts to re-rent the property as quickly as possible. This is an essential part of Oregon law and helps landlords avoid excessive financial loss due to an abandoned rental unit.

Under Oregon law, landlords are required to make reasonable efforts to re-rent the abandoned property in a timely manner. This obligation falls under the general principle of mitigation of damages, which is designed to reduce the financial burden on the landlord and prevent unnecessary loss of rental income.

• Oregon’s Landlord-Tenant Act (ORS § 90.425) specifies that if a tenant abandons a unit, the landlord is not allowed to automatically charge the tenant for the full rent due for the remainder of the lease term. Instead, the landlord must actively seek to re-rent the property and minimize financial loss.
• If the landlord fails to make reasonable efforts to re-rent, the tenant may be able to argue that they should not be held liable for any further rent beyond the date the property was abandoned. This is true even if the landlord imposes an abandonment fee (see earlier section on abandonment fees).

Reasonable Efforts to Re-Rent the Property

1. Advertising: Landlords should immediately begin advertising the property to find a new tenant. Common methods of advertising include online rental listings (e.g., Zillow, Craigslist, Apartments.com), social media, and traditional methods like newspaper ads or yard signs.
2. Market Rent: To avoid accusations of "unreasonable delay," landlords should set the rental price at or near the current market rent for similar properties in the area. Overpricing the unit will not be viewed as a reasonable effort.
3. Property Condition: The property should be in good condition and cleaned before showing it to prospective tenants. If repairs are needed, the landlord should promptly address them to make the unit more marketable.
4. Showing the Unit: Landlords must also allow prospective tenants to view the property. Some landlords may require notice or an appointment, but they cannot unreasonably refuse to show the unit to interested parties.
5. Lease Terms: When re-renting, the landlord can offer a new lease agreement with updated terms, but they must be reasonable and reflective of the current market conditions. The lease should also not be structured in a way that discriminates against potential tenants.
6. Duties Under the Oregon Residential Landlord-Tenant Act: Landlords should be careful not to violate any discrimination laws (Fair Housing Act, Oregon Fair Housing laws) when re-renting the property. They must also follow the notice requirements for terminating the original lease agreement and entering into a new one.

Source: Oregon State Legislature, ORS 90.425

Bottom Line

Dealing with abandoned property in Oregon requires a clear understanding of the legal requirements to protect both the tenant’s rights and the landlord's ability to reclaim any losses. By following the steps outlined in ORS 90.425, landlords can ensure they are in compliance with the law and avoid costly legal disputes. Make sure to provide proper notice, store items safely, and dispose of them legally if necessary.