Oregon lawmakers pass House Bill 234 allowing early termination of rental agreements

Tenants in Oregon will soon have greater flexibility in their rental agreements thanks to the passage of House Bill 234, which allows individuals in fixed-term tenancies to terminate their leases early under specific conditions. This legislation, discussed during the Senate Committee on Housing and Development meeting on April 21, 2025, aims to empower tenants who have received a 90-day notice from their landlords indicating that their lease will not be renewed.

Under the new law, tenants can provide a 30-day written notice to their landlord if they wish to vacate the property before the end of their lease term. This provision is particularly beneficial for those who may find a new rental opportunity sooner than expected, as it prevents them from having to pay double rent during the transition period. Additionally, landlords are prohibited from charging any fees or collecting unpaid rent that would have accrued after the termination date specified in the tenant's notice.

State Representative Tana Sanchez, who sponsored the bill, emphasized that this change gives tenants more agency in their housing situations, particularly when they are asked to move by their landlords. She noted that the bill is straightforward and logical, aiming to alleviate the financial burden on tenants who are forced to relocate.

Representative Tom Anderson, who co-sponsored the bill, highlighted the importance of promoting tenant stability and reducing the risk of financial crises that can arise from early termination notices. He pointed out that landlords can issue such notices without cause, which can leave tenants in precarious situations. This legislation seeks to address that imbalance by providing tenants with a clearer path to secure housing without incurring additional costs.

The bill is expected to have minimal fiscal impact and no revenue implications, making it a practical solution for enhancing tenant rights in Oregon. As the law takes effect for new rental agreements, it represents a significant step toward improving housing stability for residents across the state.