LONG TERM LEASE – BUYER BEWARE!

NEW! 30-yr lease option, should be approached cautiously and with due diligence. Below is a video posted to “inform” residents of a new 30-yr. fixed term lease option. This is an excellent opportunity to learn what to watch out for before you sign a long term or fixed term lease! OSTA provides commentary on this video below to point out many of the errors made here. Please be sure to read the section below this video!

The following is just the opinion of the author. Nothing here is intended to be legal advice. If you feel you need legal advice, please consult with your own attorney.

You Can Only Terminate this Rental Agreement with 60-day Notice?

Is this true?

This is False

The speaker says, approximately 12 times, that you can only terminate this Rental Agreement with 60 days notice. This is false. You can terminate this rental agreement or any rental agreement with only 30 days notice. ORS 90.620 Note: The provision and protections of the Oregon Landlord and Tenant Act ALWAYS take precedence over any and all terms in a Rental Agreement. This means that ANY provision in a Rental Agreement that is prohibited by law, interferes with, restricts or forgoes any of the rights or remedies of tenants granted in the law, or contradicts the law, is prohibited and absolutely unenforceable. ORS 90.220, ORS 90.245

A Buyer/New Owner MUST Assume The Rental Agreement?

Is this true?

This is False

The speaker says, approximately 9 times, that a buyer/new owner MUST assume the rental agreement. Again, this is absolutely false. While a purchaser of the facility must assume the rental agreements of all the tenant, the opposite is not true. A new tenant requires a new agreement. A new purchaser MAY assume the prior agreement at their own option. ORS 90.620

There is No Rent Cap?

Is this true?

This is False!

When asked about the current 10% cap, the speaker said there is no such cap. Again, this is absolutely false. ORS 90.600 *NOTE: New Recent changes in Oregon law cap manufactured home parks and marinas with 30+ spaces at 6% annual rent increases. See HB3054

My Agreement Continues if I Bring in a New Home?

Is this true?

This is False!

He even claims that if the home burns down and a tenant brings in a new home, the agreement continues. False. Like an insurance company saying if you replace your brand new Mercedes with a 30 year old VW bug you’re stuck with the same agreement and premiums. A different home would require a new and different agreement. ORS 90.100 et. seq.

If the Laws Change, My Agreement Stays the Same?

Is this true?

This is False!

When asked what happens if the law changes, the answer was the agreement remains in effect. The implication was that a change in the law would not affect the enforceability of the agreement as signed. That is false. If the law changes any part of the agreement that doesn't comply with the law becomes unenforceable. ORS 90.220, ORS 90.245

A New Rental Agreement Doesn't Mean Rules Change?

Is this true?

This is False!

The speaker says the new agreement creates no changes in the rules. False. While many facility rules and regulations are contained in a document titled “Park Rules and Regulations,” that document does not contain all the rules and regulations in a facility. Many rules are in the Rental Agreement. They know that, we should all know this as well. Read your current agreement and then read the proposed Rental Agreement carefully, you can spot the rule changes. Those rules are changed by signing this agreement. Getting tenants to sign new agreements is a tactic used by facility owners as a way to change rules and avoid the ORS 90.610 process, which requires a facility wide vote on rule changes

FURTHER MISLEADING CLAIMS

Vacancy rates have only gone down in recent years. There are few businesses with such a dependable
record of stability and guaranteed high rate of return. These new agreements just give the
owners more control over your lives. Controlling your life is their definition of stability
and predictability

There is nothing free about this. Tenants are signing these draconian agreements and giving up the stability of month-to-month agreements.

Despite the seeming temporary sounding term “month-to-month,” these agreements are
essential permanent, forever agreements, with no ending date, that cannot be changed or
terminated by a landlord without cause or justification. This is always better than an
agreement that must be renegotiated periodically.

The speaker fails to mention the current overall 10% (*Now 6%) cap on all rent increases applies
even under their new rental agreement. ORS 90.600

A W-9 is for generated/earned income, this
is not generated/earned income and it is inappropriate and possible a violation of federal
tax codes to claim as such. It would allow the owners to write off the rent credits/refunds
as a business expense. This is NOT a business expense. It is merely income they have
chosen to forgo. It is like putting something on sale, you cannot claim the difference
from the “original price” and the sale price as an expense. When you buy something on
sale or get a refund, you do not sign a W-9. This appears to be tax fraud.

HIGH-PRESSURE SALES-TACTICS

  • When asked about the “down side” of signing, the speaker say there are none! Also a misleading claim!

  • Tenants are given a very short term deadline and they say we don’t know if we will offer

    this again. This is a classic high pressure tactic

  • The speaker repeatedly says you don’t have to sign, like they are being nice and could

    force tenants to sign if they wanted to. But, they don’t mention that the law says you

    don’t have to sign and they cannot force you to.

  • The speaker keeps repeating if you don’t understand it, don’t sign it. This is intended to

    make people feel dumb. Many folks have difficulty understanding complex contracts,

    and they make these long and complicated for that purpose. Folks will sign just to prove

    they are not dumb. Another common high pressure tactic!