The following are guidelines on how to calculate the premium rent amounts for residents that do not wish to renew their leases. This policy does NOT affect properties within the city limits of Portland that are governed by the recent new guidelines. This policy does NOT apply to rent restricted units and properties.
The premium rent increase should be 10% of the expected rent if the unit vacated plus 10% and in no case less than $100 per month. Here are some examples:
Example 1: If a unit is currently renting for $875 and you give the tenant a rent increase offer to $950 because you know you can rent the unit out to a new resident at $985; the Premium Rent amount calculation would be $985 + 10% ($98.50), but this is less than $100 – so the Premium Rent amount is $100.
Example 2: If a unit is currently renting for $1000 and you give the tenant a rent increase offer to $1075 because you know you can rent the unit out to a new resident at $1100; the Premium Rent amount calculation would be $1100 + 10% ($110) – so the Premium Rent amount is $110.
If you have any questions regarding the information above, please speak with your property supervisor.