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What are my options if my tenant wants to cancel a lease agreement?

What are my options if my tenant wants to cancel a lease agreement?

Full question:

I am a landlord for a house in Portland, OR. I have a tenant that has occupied the house for 2 years, signing and renewing a 1-year lease agreement. We agreed to do a 6-month addition and I received a signed agreement. Now they want to cancel. The new lease was not set to take effect until June 16. What are my options?

Category: Landlord Tenant
Subcategory: Lease Termination
Date: 04/07/2025
State: Oregon

Answer:

In general, a tenant may cancel a lease under certain circumstances, such as fraud, duress, or breach of contract. However, if the lease terms do not allow for early termination and the landlord has not done anything wrong, the tenant could be liable for the lease duration.

If the tenant breaches the lease by terminating it early, the landlord can take legal action to recover damages. Importantly, the landlord has a duty to mitigate damages by attempting to relet the property. If a new tenant is found, the rent from that tenant must be deducted from any damages claimed by the landlord.

According to Oregon law (ORS 90.430), if a rental agreement is terminated, the landlord can seek possession of the property, collect rent, and claim damages for breach of the rental agreement.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What is the new renters law in Oregon?

The new renters law in Oregon includes several provisions aimed at protecting tenants. One significant change is the statewide rent control measure, which limits annual rent increases to 7% plus the rate of inflation. Additionally, landlords must provide a reason for non-renewal of leases, and they cannot terminate a lease without cause during the first year of tenancy. These laws are designed to enhance tenant security and affordability in the rental market. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Can a landlord refuse to renew your lease in Oregon?

Yes, a landlord can refuse to renew a lease in Oregon, but they must provide a valid reason if the tenant has occupied the property for more than one year. Under Oregon law, landlords are required to give notice and a reason for non-renewal, such as failure to comply with lease terms or a desire to sell the property. If the lease is within the first year, a landlord can choose not to renew without providing a reason. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Does a lease have to be signed by both parties?

Yes, for a lease to be legally binding, it generally needs to be signed by both the landlord and the tenant. This mutual agreement signifies that both parties accept the terms outlined in the lease. If one party does not sign, the lease may not be enforceable. However, in some cases, if one party acts in accordance with the lease terms, it may still be considered valid. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Is a contract valid if not signed by both parties?

A contract, including a lease, is generally not considered valid unless signed by both parties. The signatures indicate that both parties agree to the terms. However, if one party has acted on the contract's terms, it may still be enforceable under certain conditions. It's important to ensure that all parties sign to avoid disputes. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Is a lease binding if not signed by both parties?

A lease is typically not binding if it is not signed by both the landlord and the tenant. The signatures confirm that both parties agree to the lease terms. If only one party signs, the lease may lack enforceability unless actions taken by both parties indicate acceptance of the lease's terms. To avoid legal issues, it is best practice for both parties to sign the lease. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Do leases automatically go month to month in Oregon?

In Oregon, if a lease expires and is not renewed or extended, it may convert to a month-to-month tenancy automatically if the tenant continues to occupy the property and the landlord accepts rent. This arrangement allows either party to terminate the agreement with proper notice, typically 30 days. However, if the lease specifies otherwise, those terms will prevail. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*