Should You Choose a Month-to-Month or Yearly Lease in Oregon?

by | Sep 2, 2025 | Investing in Rental Properties, Owner Education, Property Management Education, Uncategorized | 0 comments

Should You Choose a Month-to-Month or Yearly Lease in Oregon?

Let’s be honest—Oregon isn’t the easiest place to own an investment property. Between ever-changing rental laws and shifting market conditions, landlords often find themselves asking one big question:

👉 Should I put my tenant on a fixed-term lease, or go with a month-to-month lease?

The answer isn’t always straightforward—especially if you’re thinking about selling your property in the near future. Here are some key points you need to know before deciding:

1. No-Cause Terminations Are Limited

  • A landlord can only no-cause terminate a tenancy within the first year of occupancy, and even then, it requires a 30-day notice.
  • Once a tenant has lived in the property for more than a year, no-cause terminations are no longer allowed in Oregon. From that point forward, all lease changes or terminations require a 90-day notice and must have a qualifying reason under state law.

2. Term Lease vs. Month-to-Month Lease

  • With a fixed-term lease, landlords can rely on the “three strikes and you’re out” rule—meaning if a tenant repeatedly violates the lease, you have stronger grounds to terminate with cause.
  • With a month-to-month lease, landlords cannot use the same rule, which can make it harder to end the tenancy if issues arise.

3. Selling Your Property Changes the Timeline

Oregon’s Senate Bill 586 introduced important updates for landlords who plan to sell:

  • If you’re selling your property to an owner-occupant buyer, you can now terminate a tenancy with 60 days’ notice (instead of 90).
  • However, you must also pay the tenant one additional month’s rent on top of any other required relocation assistance.
  • Proof of the accepted offer from the owner-occupant buyer must be provided to the tenant.

So, What’s Best for You?

  • If you want maximum control and stronger protections, a fixed-term lease is often the safer choice.
  • If you’re considering selling soon, a month-to-month lease may provide more flexibility, but it comes with limitations you’ll need to manage carefully.

At The Garcia Group, we help Oregon landlords navigate these complicated decisions every day. Whether you’re weighing lease options, preparing to sell, or just want peace of mind knowing your investment is being cared for, we’re here to help.

đź“ž Call/text us at 971-837-3160 or visit portland-propertymanagement.co to learn how we can protect your property and simplify your role as a landlord.