Oregon’s SB 722 and HB 2070: What They Could Mean for Your Rental Business in 2026

Oregon’s 2025 legislative session produced a cluster of bills that, if enacted, will mean big changes for Portland’s landlords in 2026. Two pieces of legislation in particular, Senate Bill (SB) 722 and House Bill (HB) 2070, could change the compliance landscape in practical ways.

Both bills are still in committee at the time of this article, but based on Oregon’s history of regulating the rental market, there’s a decent chance that one or both bills will pass. For landlords, it’s time to start translating headlines into straightforward operational steps so your cash flow and risk stay predictable. Here are the changes SB 722 and HB 2070 propose and how you can prepare your business to accommodate them.

HB 2070 and SB 722: An Overview

At a glance, SB 722 targets automated rent and occupancy tools and revises exemptions in the state’s rent rules. It would bar landlords from using commercial software that relies on nonpublic competitor data to set rent or occupancy levels. The measure also contemplates shorter exemption periods for newly constructed units from statewide rent regulation, a change with direct implications for proforma modeling and lease planning.

HB 2070 moves in a different direction. It would eliminate what the bill calls “pet rent,” forbidding landlords from charging extra monthly rent or separate recurring fees solely because a tenant has a cat, dog, or other companion animal. The stated policy goal is to lower housing costs for pet owners and reduce one recurring expense that many tenants face. Landlords must now review lease language and fee schedules to align with the new restriction.

Revenue Management and Rent Setting

SB 722 is the one to watch for landlords that use automated pricing engines, dynamic models, or algorithm-driven occupancy tools. The bill draws a line between standard market analytics and systems that incorporate proprietary, nonpublic competitor data in a way that can fix rent levels across multiple property managers.

For landlords who rely on automated systems to optimize yield, this means immediate due diligence: ask vendors where their data comes from, and document that pricing recommendations are derived from lawful, public sources and from your own property performance data. If the law passes, landlords may need to consider switching vendors to one that complies with updated regulations. Failure to do so may create exposure to statutory damages under the bill’s proposed enforcement provisions.

Financial Planning Changes

These reforms have implications for landlords’ long-term financial planning. If the shortened exemption for new construction is enacted, newly completed units could face rent caps earlier than expected. That shifts the risk profile for new builds, especially projects whose underwriting assumes a 15-year period of flexible rent setting. Landlords and developers should run scenario analyses that update cash flow models for a seven-year cap window, and stress test refinancing plans against lower projected net operating income.

Lease and Collections Playbook Changes

If HB 2070 becomes law, property managers can no longer rely on pet rent as a steady revenue stream. Landlords can, however, continue to require reasonable liability protections. That commonly means assessing a refundable security deposit, charging for documented pet damage after move-out, or requiring renters’ insurance that covers pet liability. If the law passes, landlords should update move-in checklists and inspection templates so documented condition reports support post-tenancy claims.They should also keep communications consistent and transparent so renters know the distinctions between a prohibited monthly pet charge and permitted damage recovery.

Risk Management and Tenant Relations

Both bills introduce shifting incentives for landlords and tenants. SB 722 could limit tools that would otherwise lead to broad, coordinated price increases. Tenants may find that limitation to be a valid protection against unfair rent increases, but for landlords, it can mean tighter margins in hot markets. On the other hand HB 2070 would eliminate recurring charges on tenants with pets, which may increase demand for pet-friendly units.

Landlords can respond by structuring clear rules for pet behavior, breed or size policies if allowed by fair housing rules, and by investing in preventive measures like durable flooring or pet-friendly landscaping. Communication is crucial: you may want to publish a short pet policy addendum and standardize expectations for care and damage remediation.

Enforcement, Litigation, and Statutory Exposure

SB 722 includes potential statutory damages for affected tenants or applicants if the prohibited software-based pricing practices occur. That elevates the need to keep vendor documentation and internal records showing how final rent decisions are made. The risk of legal trouble could rise for landlords who cannot produce evidence that rent was set without now-illegal data sources. Legal counsel should prepare a standardized affidavit or memo template that staff can use to record the reason for rent changes.

Action Items: Adjust Your Business for HB 2070 and SB 722

Though neither bill has yet been passed, the time to take action is now. Here are some things you can implement to strengthen your business before the end of the year:

• Request written documentation from software vendors that details data sources and algorithm inputs. Keep copies in your compliance files.
• Pull a master inventory of current leases and flag clauses that reference pet rent or automatic fee structures.
• Prepare to update lease forms, handbooks, and advertising templates to reflect the new pet policy. Make pet application forms document-based and linked to the master lease.
• Re-run underwriting models for new construction and planned acquisitions with a reduced exemption timeline. Build contingency plans for refinancing needs earlier than previously forecasted.
• Make plans to train staff on new inspection standards and damage documentation so property condition disputes have strong evidence.

Looking Ahead: Strategy and Business Continuity

Policy change is a constant in housing markets, and that’s especially the case in Portland. Recent years have seen many new laws and regulations aimed at keeping our city’s rental market thriving and stable. As frustrating as the need to constantly pivot can be, landlords who treat bills such as these only as a compliance exercise can end up missing an opportunity to better their businesses.

Ideally, landlords can use these bills as a catalyst to make their businesses stronger. A transparent rent-setting policy, clear vendor contracts, and well-documented maintenance and damage processes not only reduce legal risk but also improve tenant retention and brand reputation.

For property owners who feel overwhelmed by these new legislative shifts, expert guidance can make all the difference. The team at Rent Portland Homes Darla Andrew’s Office has years of experience navigating Oregon’s complex rental laws and can help landlords adapt their operations, update leases, and protect their investments under the new rules. Contact Rent Portland Homes Darla Andrew’s Office today at (503) 515-3170 to ensure your rental portfolio stays ahead of Oregon’s changing legal landscape.