Oregon Passes SB 586: Landlords Can Soon Terminate Tenancies with 60 Days’ Notice When Selling

Oregon landlords will soon be able to terminate tenancies with 60 days’ notice instead of the current 90 days when selling a tenant-occupied property to a buyer who intends to live there, thanks to Senate Bill 586 passed in 2025.

What SB 586 Changes

Previously, landlords were required to provide tenants with 90 days’ notice before ending a tenancy for the purpose of selling the home to a buyer who intends to occupy it as their primary residence.

Once SB 586 takes effect in September 2025, landlords will be able to provide just 60 days’ notice, provided they:

• Have accepted a purchase offer from a buyer intending to occupy the home,
• Provide written evidence of the accepted offer to the tenant, and
• Pay the tenant an amount equal to one month’s rent at the time the notice is given.

Importantly, landlords are required to pay this one-month relocation assistance at the time notice is delivered. They cannot deduct this amount from any other balance the tenant may owe, such as unpaid rent or damages. Additionally, this relocation payment requirement applies only to landlords who own more than four residential rental units in Oregon. If the landlord owns four or fewer residential rental units in the state, the relocation payment is not required when giving the 60-day notice under this law.

Why This Matters

• Faster Sales Timeline: Shortens the process of preparing a property for closing when selling to an owner-occupant.
• Tenant Support: Provides relocation assistance to tenants while ensuring they receive clear notice timelines.
• Clear Rules: Creates a predictable process for landlords navigating a sale while maintaining tenant protections during transition periods.

Key Dates

SB 586 was signed into law on June 9, 2025, and will take effect 91 days after the end of the legislative session, which is expected to place the operative date in September 2025.

Bottom Line

Oregon’s SB 586 will reduce the required notice period from 90 days to 60 days when landlords sell a rental property to a buyer who will occupy it, allowing landlords with more than four units to complete sales faster while still protecting tenants with clear notice and relocation payment when applicable.

Stay tuned for more updates on Oregon rental law changes affecting landlords and tenants as this law approaches its effective date.