Portland’s Air Conditioning Laws: What’s New and What’s on the Horizon

Oregon’s summer heat has steadily intensified. In 2021, the state endured a record-breaking heat wave that led to 72 heat-related deaths in Multnomah County. Historically, Portland residents could often count on cooler nights to alleviate the heat of the days; however, scientists report that summer temperatures in Oregon have increased by approximately 3°F in recent decades, reducing the relief that even nighttime can bring. In this climate, legislators are taking significant steps to equip residents, especially renters, with essential cooling protections. That’s why landlords need to understand Portland’s air conditioning laws and how they’re set to impact operations.

Right‑to‑Air Conditioning (SB 1536, 2022)

The first wave of reform began with the passage of Senate Bill 1536 in 2022, which secured tenants’ right to install their own air-conditioning (AC) units. SB 1536 established that the only valid reasons for landlords to restrict AC units was if they involved safety, building code compliance, electrical capacity, or structural integrity concerns. Landlords can require professional installation, inspections, and seasonal removal, but cannot outright deny tenants the right to cool their homes during extreme heat.

Portland’s air conditioning laws permit tenants to install portable or window units as long as they doesn’t violate:

• Building codes or manufacturer guidelines.
• Electrical capacity or fire safety.
• Egress requirements or window warranty.
• Drainage or structural integrity.

If tenants use air conditioning units, they must be removed between October 1 and April 30, unless otherwise agreed. Additionally, buildings permitted on or after April 1, 2024, must include at least one room with landlord-provided cooling.

Proposed Senate Bill 54 (2025): Mandating Cooling in Multi‑Family Rentals

Building on that foundation, the Oregon legislature advanced a bolder mandate in 2025: Senate Bill 54. Introduced by Sen. Kayse Jama and others, the bill requires property owners with 10 or more rental units to ensure indoor cooling in at least one room whenever temperatures exceed 80°F.

The law is flexible in how landlords meet this requirement: they may install central AC, air-source or ground-source heat pumps, offer passive cooling designs, or even distribute portable AC units. If implementing in-unit cooling is unfeasible, landlords may alternatively provide access to a shared “community cooling space.”

The legislation also states that, for buildings permitted on or after January 1, 2026, at least one room (not including bathrooms) must include cooling capabilities. Further, by January 1, 2036, all bedrooms in buildings of 10+ units will need cooling devices, permanently embedding AC into the habitability standards for rental housing.

Challenges to Future Cooling Mandates In Rentals

Critics, including representatives from housing associations, warn of substantial financial burdens. Installing heat pumps in older properties may cost $6,000 to $20,000 per unit, especially where electrical and insulation systems require upgrades. MultiFamily NW’s board president noted recently that a property owner with over 2,000 units could face $21 million in upfront costs just to comply.
Others caution about the strain this may place on the electrical grid. The Senate Housing Committee is currently evaluating these concerns, balancing housing market impacts with public safety needs. As of early July 2025, SB 54 is still in committee review without full approval.

What Landlords Should Be Doing Now

Even as SB 54 awaits final approval, landlords in Portland and statewide should begin preparing:

Property Assessment

Owners of buildings with 10+ units should inventory current cooling infrastructure: central systems, heat pumps, or portable AC. They must determine whether high-heat days leave tenants without a cool space.

Phased Build-Out

Conditional upon SB 54’s passage, landlords must provide at least one cooled room per unit on days above 80°F. They may satisfy this requirement via landlord-supplied portable units or heat pumps. Newly constructed buildings (permits post-Jan 1, 2026) must include built-in cooling from day one, and by 2036, all bedrooms must be equipped.

Select Compliance Strategies

Budget-conscious options like portable AC may be the fastest route, but heat pumps or central air offer greater efficiency and potentially include incentives. Passive measures like shading, insulation upgrades, and reflective roofing can reduce overall energy demand but may not suffice for legal compliance.

Utilize State Incentives

The Oregon Department of Energy has already allocated $15 million, later supplemented with $4 million, to its Rental Heat Pump Program. Portland’s city-administered Cooling Portland initiative offers free portable units to low-income tenants via 311 and nonprofit partnerships. PCEF has exceeded 16,670 installations toward a 25,000-unit goal—underscoring both demand and available support.

Document and Communicate

Landlords must not only install cooling systems but keep them in good working order, maintain logs, and furnish tenants with written guidance—a carryover from SB 1536’s portable-unit provisions. Public notice about heat procedures, maintenance scheduling, and emergency protocols will smooth over future compliance and tenant relations.

Educate Tenants on Beating the Heat

Keeping your tenants safe is one of a landlord’s most important responsibilities. As the Oregon and Portland legislatures continue to find the right balance between the needs of tenants and landlords, there are many things that landlords themselves can do to help prevent heat-related illnesses and deaths in their rental units. You may wish to provide your tenants with information on the following:

• Installing AC units. You can inform your tenants of their right to install their own portable or window AC unit, including the potential restrictions listed above.
• Apply for free units. Portland’s Cooling Portland initiative, funded by PCEF, allows income-qualified residents (≤60% AMI, about $53,000/year for an individual) to request a free portable air conditioner via Portland 311. As of early July 2025, more than 16,670 units had been distributed to seniors, those with medical vulnerabilities, or residents living alone.
• Strengthen passive cooling. Using fans to create opportunities for cross-breezes, drawing curtains during daylight, insulating windows and doors, and installing shading can make a big difference on hot days.

Portland’s New AC Laws Are Part of a Larger Shift

Portland’s strategy is part of a larger adaptation plan. The city, along with the state, is responding to a climate marked by prolonged extreme heat. Rising overnight temperatures and heat-related ER visits are clear signals that traditional Oregon housing wasn’t built for enduring summer peaks. The Cooling Portland program has already broken ground by delivering thousands of units, and statewide programs have deployed over $15 million in heat-pump rebates.

At the legislative level, SB 54’s proposals recognize air conditioning as an essential service on par with heating. These shifts aim to transform cooling from an optional amenity to a baseline health and safety requirement for renters.

How to Navigate Portland’s New AC Rules

As Portland’s air-conditioning laws evolve, staying compliant doesn’t have to feel overwhelming: Rent Portland Homes Darla Andrew’s Office is here to help. Our expert property management team stays on top of every legislative change, ensuring your rentals meet current and upcoming requirements with ease. Instead of risking costly penalties or tenant disputes, partner with professionals who’ve got your back. Contact Rent Portland Homes Darla Andrews Office today.